extraordinary' measures are necessary to clean or
restore the premises, the landlord may deduct the
cost of such cleaning from your security deposit.
What will happen to my security deposit
if I vacate the property before the end of my lease?
In addition to any physical damage which
you may have caused to his property, the
landlord may also deduct from your security
deposit any actual damages caused by your
moving out of the property before the end of
your lease term; however, they may not charge
you a “termination fee" or impose any other
penalty-' or forfeiture of deposit for your early
termination and must use their best effoits to fill
the vacancy as soon as possible. For example,
your rent is $600 per month and you move out
of the landlord’s property two months before
the end of your lease. If it takes the landlord
one month to re-rent the property, $600 may
be deducted from your security deposit as lost
rent for the period during which the property'
was vacant. The landlord may also use the
security deposit to recover any reasonable fees
or commissions charged by a licensed broker to
re-rent the property.
What will happen to my security deposit if,
for some reason, I am unable to pay my rent?
If you fail to fulfill your obligations under
the lease, including your obligation to pay rent,
the landlord or agent may evict you from the
property. The court proceeding is known as
“summary ejectment.” In addition to having you
removed from the property, the landlord or agent
may recover from you any unpaid rent, late fees,
and, of course, the cost of repairing any physical
damage which you may have caused to the
property — but not damage due to ordinary wear
and tear. In addition, if you leave behind any of
your personal property (furniture, clothing, etc.),
the landlord may also recover from you the cost
of storing your property. If your security deposit
will not cover the landlord’s damages for unpaid
rent, physical damage to the property, and storage
of your personal property, you will be liable
for payment of any remaining costs. If a civil
judgment is entered against you by the court, it
could adversely affect your credit rating.
Is there a deadline by which the landlord or
agent must return my security deposit?
Within 30 days after the termination of your
tenancy, the landlord or agent must send you
either a full refund of your deposit or a written
itemized accounting of any deductions along with
any remaining refund amount. Where the full
amount of damage cannot be determined within
30 days, the landlord or agent must send you a
written interim accounting of deductions claimed,
followed by a final accounting no later than 60
days following the end of the tenancy. So, it is
important to give your landlord or agent a full
forwarding address. If you cannot be located,
the landlord or agent must hold any refund due
for at least six months in their trust account. If
the landlord or agent fails to refund your deposit
or make tine required accounting, you can sue
for recovery of the deposit and reasonable
attorney fees. The failure to make the accounting
as required under the Act is a forfeiture of the
landlord’s right to retain any portion of the deposit.
What will happen to my security deposit if the
ownership or management of the property that I rent
is transferred to someone else?
If the landlord who collected your security
deposit transfers ownership of the property to
someone else during the term of your lease,
they must either refund your security deposit to
you, or transfer your deposit to the new owner
(after making any allowable deductions) and
notify you in writing of the new owner's name
and address. In either case, your deposit must
be refunded or notice given to you of tine new
owner’s name and address with in thirty days of the
transfer. Likewise, if you have paid your security
deposit to the landlord’s agent and the agent
discontinues managing the property during the
term of your lease, the agent must either transfer
your deposit to the landlord/owner or, with the
owner’s permission, transfer your deposit to the
new manager. In either case, the agent to whom
you paid your security deposit must notify you
of the new location of your deposit and, if your
deposit is being transferred to the owner, advise
the landlord of their responsibilities to you under
the Tenant Security Deposit Act (NC Gen. Stat. § 42-
50 et seq.).
Scan the code below to access the
Commission Website from pur mobile devices.
THE NORTH CAROLINA
REAL ESTATE COMMISSION
P.O. Box 17100 Raleigh, NC 27619-7100
Phone:
919/875-3700
Website: www.ncrec.gov
15,' 000 copies of this public document were primed at acosl of $J725 per copy.
REC 3.24
7/1/19