A landlord in Terre Haute collects a $2,000 security deposit from a tenant who signs a one-year lease. The tenant is evicted by court order after 8 months for nonpayment of rent. The sheriff removes the tenant on November 1. The landlord claims $800 in unpaid rent and $500 in property damage. The landlord sends an itemized statement on December 20. The tenant argues that the 45-day deadline expired before December 20 and that the landlord has forfeited all deductions. Which of the following most accurately describes the legal outcome?
Correct Answer
D) The landlord forfeited all deduction rights because December 20 is more than 45 days after November 1, when the sheriff removed the tenant and possession was delivered
Under IC 32-31-3-12, the 45-day period begins when the lease terminates and the tenant delivers possession. In an eviction scenario, possession is delivered when the sheriff physically removes the tenant and the landlord regains control of the property — which occurred on November 1. Counting 45 days from November 1 yields December 16 as the deadline. The landlord's statement was sent on December 20, which is four days after the deadline. Under IC 32-31-3-13, the landlord forfeits all deduction rights and must return the full $2,000 deposit. There is no exception in Indiana law for eviction cases, unpaid rent claims, or pending court orders.
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