SECURITY DEPOSIT ITEMIZATION & RETURN LETTER

(Delaware – Residential Lease)

[// GUIDANCE: This template is drafted for compliance with the Delaware Residential Landlord–Tenant Code, 25 Del. C. § 5514. Customize all bracketed items before use.]

I. DOCUMENT HEADER

From (Landlord):
[LANDLORD LEGAL NAME]
[LANDLORD STREET ADDRESS]
[LANDLORD CITY, STATE ZIP]
[PHONE] | [EMAIL]

To (Tenant):
[TENANT LEGAL NAME]
[FORWARDING STREET ADDRESS]
[CITY, STATE ZIP]

Re: Security Deposit Itemization & Return – [PROPERTY ADDRESS]
Lease Date: [MM/DD/YYYY]
Possession Returned: [MM/DD/YYYY]
Effective Date of Notice: [MM/DD/YYYY]

II. DEFINITIONS

For purposes of this Letter:

1. “Agreement” means the written Residential Lease dated [LEASE DATE] between Landlord and Tenant for the Premises.
2. “Deposit” means the security deposit of $[AMOUNT] delivered by Tenant under the Agreement, together with any Interest accrued thereon as required by 25 Del. C. § 5514(b).
3. “Interest” means interest earned on the Deposit after the first lease-year, calculated at the pass-book savings rate of the federally insured depository where the Deposit was held.
4. “Normal Wear and Tear” has the meaning set forth in 25 Del. C. § 5141(17) and is expressly excluded from Allowable Deductions.
5. “Allowable Deductions” means the items listed in 25 Del. C. § 5514(a): (i) unpaid rent or fees; (ii) damages to the Premises beyond Normal Wear and Tear; and (iii) such other charges expressly permitted by the Agreement or statute.

III. OPERATIVE PROVISIONS

3.1 Deposit Accounting

3.2 Itemized Deductions

3.3 Balance Calculation

Total Deposit & Interest ……………………………… $[ ]
LESS Total Deductions ………………………………… $[ ]

1. Refund Owed to Tenant (if positive balance) ……… $[ ]

or

2. Amount Due from Tenant (if negative balance) …… $[ ]

3.4 Remittance / Payment Instructions

1. If a refund is due, a check in the amount of $[ ] is enclosed and sent via [CERTIFIED MAIL / COURIER] to the Forwarding Address above.
2. If a balance is due, please remit payment in full within ten (10) calendar days of the Effective Date of Notice to the address stated in Section I. Failure to remit may result in legal action for recovery, interest, court costs, and statutory penalties as authorized by 25 Del. C. § 5514(g).

IV. REPRESENTATIONS & WARRANTIES

1. Landlord represents that the Deposit was maintained in a federally insured escrow account in accordance with 25 Del. C. § 5514(b).
2. Landlord warrants that each deduction itemized herein is reasonable, actual, and limited to Allowable Deductions.
3. Landlord further represents that this Notice is delivered within the twenty-day period mandated by 25 Del. C. § 5514(f).

V. COVENANTS & RESTRICTIONS

1. Tenant shall direct any written dispute of this itemization to Landlord at the address in Section I within ten (10) calendar days of receipt, specifying each contested item with supporting evidence.
2. Tenant covenants not to initiate litigation until the above dispute procedure has been completed in good faith.

VI. DEFAULT & REMEDIES

1. Tenant Default. Failure to pay any balance due within the time stated constitutes a default.
2. Landlord Remedies. Upon default, Landlord may pursue all remedies under the Agreement and Delaware law, including suit in the Justice of the Peace Court for money damages, court costs, and attorneys’ fees if awarded.
3. Statutory Penalties. Nothing herein limits Tenant’s statutory right to double the Deposit plus 10% interest per annum should Landlord fail to comply with 25 Del. C. § 5514(f)–(g).

VII. RISK ALLOCATION

Indemnification provisions are not applicable to this Letter. Landlord’s liability, if any, is limited to statutory amounts expressly provided in 25 Del. C. § 5514(g).

VIII. DISPUTE RESOLUTION

1. Governing Law. State of Delaware.
2. Forum Selection. Exclusive jurisdiction lies in the Justice of the Peace Court or other state housing court having venue over the Premises.
3. Arbitration. Not applicable.
4. Jury Waiver. No waiver is expressed or implied; constitutional rights are preserved.
5. Relief. Parties shall seek money damages; injunctive relief is not contemplated by this Letter.

IX. GENERAL PROVISIONS

1. Entire Notice. This Letter constitutes the entire security-deposit accounting required by 25 Del. C. § 5514(f).
2. Amendments. Any amendment must be in a writing signed by Landlord.
3. Severability. If any provision is held invalid, the remainder shall remain in full force.
4. Delivery. Electronic and scanned signatures are binding to the same extent as originals, subject to Delaware’s Uniform Electronic Transactions Act.
5. Successors. This Letter binds and benefits the parties and their respective heirs, successors, and assigns.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, Landlord executes this Security Deposit Itemization & Return Letter as of the Effective Date of Notice.

text

[LANDLORD NAME & TITLE]
Date: ________

[Optional Tenant Acknowledgment – not required under Delaware law]

[TENANT NAME]
Date: ________

[// GUIDANCE:
1. Verify the twenty-day statutory deadline (count from both lease termination AND return of possession).
2. Retain proof of mailing (certified mail recommended).
3. Attach copies of paid invoices, photographs, or other evidence to support deductions.
4. Double-check that each deduction fits one of the “Allowable Deductions” categories.
5. If in doubt, consult Delaware counsel before sending.]