What are the laws governing the refund of a security deposit?
In California, laws governing the refund of a security deposit are laid out in the state’s Civil Code, specifically sections 1950.5 and 1941. In general, the landlord must refund the security deposit within 21 days of the tenant vacating the premises. The refund must be the entire security deposit minus deductions for unpaid rent, damages beyond normal wear and tear, and other expenses. The landlord must provide the tenant with a written itemized list of any deductions taken from the deposit. The landlord also has to return the deposit or provide the tenant with an itemized written statement within 21 days if the tenant disputes the deductions. This statement must include a good faith estimate of the costs for the repairs. If the tenant does not dispute the deductions, the landlord is expected to provide proof of payment of bills for repairs. If the tenant does not receive their security deposit or the written itemized statement within 21 days, the tenant can sue the landlord for up to twice the amount of the deposit, plus additional damages within a year of the tenancy completion. It is important for both landlords and tenants to abide by these laws to prevent legal disputes.
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