Re: Lease - Landlord Forum thread 353882

Re: Lease by Anonymous on August 16, 2017 @23:46

It does not need to be in the lease itself, but the landlord is to notify the tenant within 30 days where the security deposit is held.

§ 42-50. Deposits from the tenant.
Security deposits from the tenant in residential dwelling units shall be deposited in a trust
account with a licensed and federally insured depository institution lawfully doing business in
this State or the landlord may, at his option, furnish a bond from an insurance company licensed
to do business in North Carolina. The security deposits from the tenant may be held in a trust
account outside of the State of North Carolina only if the landlord provides the tenant with an
adequate bond in the amount of said deposits. The landlord or his agent shall notify the tenant
within 30 days after the beginning of the lease term of the name and address of the bank or
institution where his deposit is currently located or the name of the insurance company providing
the bond. (1977, c. 914, s. 1; 2015-93, s. 2.)

If the landlord fails to follow state law, the landlord may lose the right to withhold any portion of the tenant's security deposit.

§ 42-55. Remedies.
If the landlord or the landlord's successor in interest fails to account for and refund the
balance of the tenant's security deposit as required by this Article, the tenant may institute a civil
action to require the accounting of and the recovery of the balance of the deposit. The willful
failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall
void the landlord's right to retain any portion of the tenant's security deposit as otherwise
permitted under G.S. 42-51. In addition to other remedies at law and equity, the tenant may
recover damages resulting from noncompliance by the landlord; and upon a finding by the court
that the party against whom judgment is rendered was in willful noncompliance with this Article,
such willful noncompliance is against the public policy of this State and the court may award
attorney's fees to be taxed as part of the costs of court. (1977, c. 914, s. 1; 2009-279, s. 6.)

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