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.