North Carolina's Tenant Security Deposit Act (G.S. 42-50 through 42-56) looks simple next to the Northeast's regimes — no interest payments, no sworn statements — but what it requires, it requires precisely, and noncompliance forfeits the landlord's right to keep anything.
How much can a landlord charge? It depends on the tenancy
Week-to-week: two weeks' rent. Month-to-month: one and a half months. Longer terms: two months (G.S. 42-51(b)). Pet deposits are allowed on top if reasonable and non-discriminatory against service animals.
The trust account rule
Deposits must be held in a trust account at a licensed North Carolina bank or secured by a bond, with the landlord notifying the tenant of the institution's name and address within 30 days of lease start. Out-of-state landlords without a bond routinely violate this without knowing.
Permitted uses — a closed list
North Carolina enumerates what the deposit may cover (G.S. 42-51(a)): unpaid rent and utility costs, damage to the premises (explicitly including smoke and CO alarms), losses from early termination (with exceptions for lawful tenant terminations), unpaid bills that lien the property, re-rental costs, and removal/storage after eviction. If it's not on the list, it can't come out of the deposit — and never ordinary wear and tear.
The 30/60-day return
The landlord must return the balance with an itemized accounting within 30 days of termination and delivery of possession. If the extent of damage can't be determined that fast, an interim accounting goes out at 30 days and the final accounting within 60 — the only extension the statute allows.
The penalty
Violating the Act forfeits the landlord's right to retain any portion of the deposit, and willful noncompliance exposes the landlord to damages and attorney's fees, pursued in small claims (magistrate) court where most of these cases live.
Why North Carolina deposit disputes are documentation disputes
NC's closed deduction list narrows the legal argument to one factual question per line item: did the tenant cause damage beyond wear and tear, or not? The statute mandates no checklist and no photos — it leaves the proof problem entirely to the parties, and the magistrate decides on whoever brought better evidence.
SealMove is better evidence, by construction. Every photo and video is cryptographically sealed the instant it's captured, independently timestamped, and locked with Face ID into a tamper-evident archive. At move-out, your walkthrough lines up room-by-room against the sealed baseline — and either party can send the other a report to review and acknowledge, no app required.