In North Carolina landlord/tenant practice, a landlord receives a tenant security deposit for a residential dwelling unit. Which statement is correct?
Correct Answer
A) The deposit must be placed in an authorized trust account or qualifying landlord bond arrangement, and the tenant must be notified within 30 days after lease start of the institution or bond information
G.S. 42-50 requires residential tenant security deposits to be deposited in an authorized trust account or covered by a qualifying bond, with tenant notice within 30 days after the beginning of the lease term. Source basis: North Carolina General Statutes Chapter 42 Article 6, Tenant Security Deposit Act, checked 2026-04-30: security deposits must be held in an authorized trust account or qualifying landlord bond; notice is due within 30 days after lease start; deposits are capped by tenancy type; refund/accounting is due within 30 days, with interim/final accounting rules when damages cannot be determined.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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