N.C. Gen. Stat. § § 42-55
Remedies.
Operative Text
If the landlord or the landlord's successor in interest fails to account for and refund the balance of the tenant's security deposit as required by this Article, the tenant may institute a civil action to require the accounting of and the recovery of the balance of the deposit. The willful failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall void the landlord's right to retain any portion of the tenant's security deposit as otherwise permitted under G.S. 42-51. In addition to other remedies at law and equity, the tenant may recover damages resulting from noncompliance by the landlord; and upon a finding by the court that the party against whom judgment is rendered was in willful noncompliance with this Article, such willful noncompliance is against the public policy of this State and the court may award attorney's fees to be taxed as part of the costs of court. (1977, c. 914, s. 1; 2009-279, s. 6.)
Under N.C. Gen. Stat. § 42-55, when a landlord fails to properly account for and return a tenant's security deposit as required by North Carolina's security deposit statutes, the tenant has the right to bring a civil lawsuit to recover the balance owed. If a landlord willfully fails to meet the deposit, bond, or notice requirements of the Article, that landlord forfeits the right to keep any portion of the security deposit. Courts may also award damages and, where willful noncompliance is found, attorney's fees may be assessed against the noncompliant party as part of court costs.
Plain English — not legal advice.
N.C. Gen. Stat. § 42-55 makes clear that compliant operators carefully follow all deposit-handling, bonding, and notice requirements set out in the Article—because willful failure to do so eliminates the right to retain any part of the security deposit that would otherwise be permissible under G.S. 42-51. Property managers generally maintain thorough records of deposit accounting and ensure timely refunds or written itemizations to avoid exposure to civil suits. Willful noncompliance can also result in a court ordering payment of the tenant's attorney's fees, which significantly increases the financial stakes of non-adherence.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.C. Gen. Stat. § 42-55 gives tenants a civil remedy when a landlord fails to account for or return a security deposit as required—tenants may file a lawsuit to recover the balance owed and any resulting damages. If a court finds that the landlord's noncompliance was willful, the landlord also loses the right to retain any portion of the deposit and may be ordered to pay the tenant's attorney's fees as part of court costs. Tenants who believe their deposit rights have been violated may consider consulting a tenant-rights organization or legal aid office to understand the range of options available under this provision.
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 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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