Return of deposits; deductions; liability
Sec. 12. (a) Upon termination of a rental agreement, a landlord
shall return to the tenant the security deposit minus any amount
applied to:
(1) the payment of accrued rent;
(2) the amount of damages that the landlord has suffered or will
reasonably suffer by reason of the tenant's noncompliance with
law or the rental agreement; and
(3) unpaid utility or sewer charges that the tenant is obligated
to pay under the rental agreement;
all as itemized by the landlord with the amount due in a written
notice that is delivered to the tenant not more than forty-five (45)
days after termination of the rental agreement and delivery of
possession. The landlord is not liable under this chapter until the
tenant supplies the landlord in writing with a mailing address to
which to deliver the notice and amount prescribed by this subsection.
Unless otherwise agreed, a tenant is not entitled to apply a security
deposit to rent.
(b) If a landlord fails to comply with subsection (a), a tenant may
recover all of the security deposit due the tenant and reasonable
attorney's fees.
(c) This section does not preclude the landlord or tenant from
recovering other damages to which either is entitled.
(d) The owner of the dwelling unit at the time of the termination
of the rental agreement is bound by this section.
As added by P.L.2-2002, SEC.16.
Last modified: May 24, 2006