§ 32-31-3-12 — Return of deposits; deductions; liability

(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.
[Pre-2002 Recodification Citation: 32-7-5-12.]

Legislative History

As added by P.L.2-2002, SEC.16.