Cal. Civ. Code § 44-7-32
Surety bond in lieu of escrow account; withdrawal of surety; fees; liability of clerk of superior court.
Operative Text
(a) As an alternative to the requirement that security deposits be placed in escrow as provided in Code Section 44-7-31, the landlord may post and maintain an effective surety bond with the clerk of the superior court in the county in which the dwelling unit is located. The amount of the bond shall be the total amount of the security deposits which the landlord holds on behalf of the tenants or $50,000.00, whichever is less. The bond shall be executed by the landlord as principal and a surety company authorized and licensed to do business in this state as surety. The bond shall be conditioned upon the faithful compliance of the landlord with Code Section 44-7-34 and the return of the security deposits in the event of the bankruptcy of the landlord or foreclosure of the premises and shall run to the benefit of any tenant injured by the landlord’s violation of Code Section 44-7-34. (b) The surety may withdraw from the bond by giving 30 days’ written notice by registered or certified mail or statutory overnight delivery to the clerk of the superior court in the county in which the principal’s dwelling unit is located, provided that such withdrawal shall not release the surety from any liability existing under the bond at the time of the effective date of the withdrawal. (c) The clerk of the superior court shall receive a fee of $5.00 for filing and recording the surety bond and shall also receive a fee of $5.00 for canceling the surety bond. The clerk of the superior court shall not be held personally liable should the surety bond prove to be invalid.
Under O.C.G.A. § 44-7-32, Georgia law gives landlords an alternative to holding security deposits in a separate escrow account: they may instead post a surety bond with the clerk of the superior court in the county where the rental property is located. The bond amount must equal the total security deposits held, up to a maximum of $50,000, and must be issued by a state-licensed surety company. The bond is designed to protect tenants in cases such as landlord bankruptcy or foreclosure, ensuring that security deposit obligations under § 44-7-34 can still be met. A surety company that wishes to exit the bond must give 30 days' written notice, though it remains liable for any claims that arose before that withdrawal took effect.
Plain English — not legal advice.
Landlords who choose the surety bond option under O.C.G.A. § 44-7-32 instead of maintaining an escrow account typically ensure the bond is filed with the correct superior court clerk and reflects the current total of all security deposits held, never exceeding $50,000. Compliant operators use a surety company that is authorized and licensed to do business in Georgia, and they monitor the bond's status — particularly if the surety issues a withdrawal notice — so that coverage remains continuous and consistent with the obligations set out in § 44-7-34. Keeping records of the bond filing and any amendments helps demonstrate ongoing compliance if a tenant dispute arises.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under O.C.G.A. § 44-7-32, tenants are protected by a surety bond that a landlord may post as an alternative to an escrow account, with the bond running directly to the benefit of any tenant harmed by the landlord's failure to comply with § 44-7-34. If a landlord files for bankruptcy or the property is foreclosed upon, the bond is specifically conditioned to cover the return of security deposits in those circumstances. Tenants who believe their security deposit rights have been violated may consult a tenant-rights organization, review the bond on file with the superior court clerk in the county where the property is located, or explore available civil remedies under Georgia law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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