Security Deposit Itemization Letter

SECURITY DEPOSIT ITEMIZATION & DISPOSITION LETTER

(Maryland – Md. Code Ann., Real Prop. § 8-203 Compliant)

DOCUMENT HEADER

Date: [DATE]

From (Landlord):
[LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE]
[LANDLORD ADDRESS]
[PHONE] | [EMAIL]

To (Tenant):
[TENANT FULL NAME]
[TENANT LAST-KNOWN ADDRESS] and [TENANT EMAIL]

Re: Security Deposit for [LEASED PREMISES ADDRESS] (“Premises”) – Lease dated [LEASE DATE] (the “Lease”)

RECITALS

A. Landlord and Tenant were parties to the Lease, which terminated effective [TERMINATION DATE] (“Termination Date”).

B. In connection with the Lease, Tenant tendered a security deposit in the amount of $[DEPOSIT AMOUNT] (the “Deposit”), which Landlord held in a Maryland escrow account pursuant to Md. Code Ann., Real Prop. § 8-203(d).

C. Md. Code Ann., Real Prop. § 8-203(e)(1) requires Landlord to provide Tenant, within forty-five (45) days after the Termination Date, (i) an itemized statement of deductions from the Deposit (“Itemization”) and (ii) payment of any undisputed balance (“Refund”).

D. The purpose of this Letter is to satisfy the foregoing statutory obligations and to document Landlord’s compliance therewith.

DEFINITIONS

Unless otherwise indicated, capitalized terms used herein have the following meanings:

1. “Deposit” – The security deposit, any increase thereto, and all accrued interest required by law.
2. “Itemization” – The schedule of lawful deductions set forth in Section III.
3. “Statutory Deadline” – The forty-five-day period under Md. Code Ann., Real Prop. § 8-203(e)(1).
4. “Wear and Tear” – Deterioration that results from the ordinary use of the Premises by the Tenant, per Md. Code Ann., Real Prop. § 8-203(f)(2).

I. OPERATIVE PROVISIONS

1. Statement of Condition

Landlord conducted a move-out inspection on [DATE], with Tenant [PRESENT / NOT PRESENT]. Photographs, videos, and vendor reports supporting the deductions below are maintained in Landlord’s file and are available for inspection upon written request.

2. Itemization of Deductions

*If an exact amount is unavailable within the Statutory Deadline, a good-faith estimate is provided pursuant to Md. Code Ann., Real Prop. § 8-203(g)(1). Landlord will remit or demand any difference upon receipt of the final invoice(s).

3. Calculation of Refund

Total Deposit (plus statutorily accrued interest) ................................................. $[___]
Less: Total Allowable Deductions (from Itemization) ................................. ($[___])
Balance Due Tenant (enclosed) ................................................................. $[___]

4. Delivery of Payment

Enclosed please find Refund Check No. [___] drawn on [BANK], or, if agreed, an ACH remittance to Tenant’s designated account ending in [XXXX].

II. REPRESENTATIONS & WARRANTIES (Landlord)

1. Escrow Compliance. The Deposit was maintained in a federally insured financial institution located in Maryland, bearing interest as required by Md. Code Ann., Real Prop. § 8-203(d).
2. Accuracy. The Itemization is true, correct, and complete to the best of Landlord’s knowledge after reasonable investigation.
3. Statutory Timing. This Letter is dispatched by first-class mail to Tenant’s last-known address (and email, if available) on or before the Statutory Deadline.

III. COVENANTS & TENANT RIGHTS

1. Inspection Request. Tenant may submit a written request to inspect supporting documentation within sixty (60) days of receipt of this Letter.
2. Dispute Procedure.
   a. Written Notice. Any dispute must be stated in writing and mailed to Landlord at the address above within thirty (30) days after Tenant’s receipt hereof.
   b. Meeting Requirement. Upon timely notice, the parties shall confer in good faith to resolve the dispute within fifteen (15) days.
   c. Escalation. Unresolved disputes may be filed in the District Court of Maryland for the county where the Premises is located (“Housing Court”).

IV. DEFAULT & REMEDIES

1. Failure to Comply by Tenant. If Tenant fails to remit any balance due or otherwise breaches post-tenancy obligations, Landlord may pursue any remedies available, including:
   a. Suit for money damages;
   b. Pre- and post-judgment interest at the statutory rate; and
   c. Recovery of attorneys’ fees as permitted by Md. Code Ann., Cts. & Jud. Proc. § 11-110.

2. Statutory Penalties Against Landlord. Tenant is advised that, under Md. Code Ann., Real Prop. § 8-203(e)(4), failure by Landlord to comply with the security-deposit statute may subject Landlord to liability up to three (3) times the withheld amount, plus reasonable attorneys’ fees. Landlord believes it has fully complied.

V. RISK ALLOCATION

Indemnification and additional liability limitations are not applicable beyond those provided under Md. Code Ann., Real Prop. § 8-203.

VI. DISPUTE RESOLUTION

1. Governing Law. This Letter and any dispute arising herefrom shall be governed by the laws of the State of Maryland.
2. Forum Selection. Exclusive venue shall lie in the District Court of Maryland – Housing Court division for [COUNTY], Maryland.
3. Arbitration. The parties expressly exclude arbitration.
4. Jury Trial. Nothing herein shall constitute a waiver of any constitutional right to a jury trial.

VII. GENERAL PROVISIONS

1. Entire Statement. This Letter constitutes the complete and exclusive statement of Landlord’s disposition of the Deposit.
2. No Waiver. Landlord’s failure to enforce any right shall not operate as a waiver of future enforcement.
3. Severability. If any provision of this Letter is deemed invalid, the remaining provisions shall continue in full force.
4. Notices. All subsequent notices related to this matter shall be in writing and delivered to the addresses set forth in the Document Header (or such other address as either party may designate in writing).
5. Counterparts; Electronic Delivery. This Letter may be executed in counterparts and delivered electronically, each of which shall be deemed an original.

EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned has executed and caused this Security Deposit Itemization & Disposition Letter to be issued on the date first written above.

______________________________
[AUTHORIZED SIGNATORY NAME]
[Title], for and on behalf of
[LANDLORD LEGAL NAME]

ACKNOWLEDGMENT OF RECEIPT (Optional)

Tenant hereby acknowledges receipt of the foregoing Letter and the enclosed Refund (if any) on [DATE].

______________________________ ______________________________
[TENANT NAME] [SECOND TENANT NAME, if applicable]

End of Template