SECURITY DEPOSIT DISPOSITION & ITEMIZATION LETTER

(State of South Carolina – S.C. Code Ann. § 27-40-410 Compliance)

[LANDLORD LETTERHEAD]
[Street Address] • [City], SC [ZIP] • Tel: [--_] • Email: [_]

Date: [DATE]

Via [✅ U.S. Mail | ✅ Certified Mail, Return Receipt Requested No. __ | ✅ Hand-Delivery]

To:
[TENANT NAME]
[Forwarding Street Address]
[City], [State] [ZIP]

I. DOCUMENT HEADER

1. Parties. This Security Deposit Disposition & Itemization Letter (the “Letter”) is issued by [LANDLORD LEGAL NAME] (“Landlord”) to [TENANT LEGAL NAME] (“Tenant”) with respect to the lease of the residential property commonly known as [PREMISES ADDRESS] (the “Premises”).
2. Effective Date. This Letter is effective as of the date first written above (the “Effective Date”).
3. Statutory Context. This Letter is intended to satisfy Landlord’s obligations under the South Carolina Residential Landlord and Tenant Act, S.C. Code Ann. § 27-40-410 (2022), concerning the return and/or itemization of the Security Deposit (defined below).
4. Consideration. Delivery of this Letter and any enclosed funds constitutes Landlord’s good-faith performance of its statutory and contractual obligations, and Tenant’s receipt constitutes acknowledgment thereof.

II. DEFINITIONS

Unless otherwise expressly provided, the following capitalized terms shall have the meanings set forth below:

“Lease” means that certain Residential Lease Agreement dated [LEASE DATE] between Landlord and Tenant for the Premises.

“Move-Out Inspection” means the joint or unilateral inspection of the Premises conducted on [DATE] following Tenant’s surrender of possession.

“Ordinary Wear and Tear” means deterioration that occurs without negligence, carelessness, accident, or abuse by Tenant or Tenant’s invitees, licensees, or guests.

“Security Deposit” means the sum of $[AMOUNT] originally paid by Tenant to Landlord on [DATE] pursuant to § [LEASE SECTION] of the Lease.

Any term not defined herein but defined in the Lease or the Act shall have the meaning ascribed therein.

III. OPERATIVE PROVISIONS

3.1 Security Deposit Accounting

a. Original Deposit Received………………….. $[__]
b. Statutory Accrued Interest (if any)……….. $[__]
c. Itemized Deductions (see § 3.2)…… ($[__])
d. Net Amount Returned to Tenant…… $[__]

[// GUIDANCE: Provide check or electronic payment reference here.]

3.2 Itemized Deductions

1. Unpaid Rent (through [DATE])…………… $[____]
2. Utilities Re-billed…………………………………… $[____]
3. Damage – Carpet Replacement
   • Invoice #[_] dated [DATE]……………… $[_]
4. Damage – Drywall Repair/Paint…… $[____]
5. Cleaning – Excessive Trash Removal… $[____]
6. Others (specify)…………………………………… $[____]

Total Deductions……………………………………………………… $[TOTAL]

[// GUIDANCE: Attach copies of paid invoices, receipts, or good-faith estimates in compliance with § 27-40-410(b).]

3.3 Method and Timing of Payment

Landlord hereby tenders the Net Amount Returned (see § 3.1(d)) via [☐ check enclosed | ☐ ACH to Tenant-designated account ending ____]. Delivery is made within the thirty-(30) day statutory period following termination of the Lease and surrender of possession.

3.4 Tenant Objection Procedure

Tenant must deliver any written objection, detailing the specific item contested, to Landlord at the address above within fourteen (14) calendar days of Tenant’s receipt of this Letter (“Objection Period”). Absent timely objection, Tenant shall be deemed to have accepted this accounting as complete and accurate. Nothing herein limits any non-waivable right Tenant may have under S.C. Code Ann. § 27-40-410(c).

IV. REPRESENTATIONS & WARRANTIES

1. Accuracy. Landlord represents that the foregoing itemization is true, correct, and based on (i) the Move-Out Inspection, (ii) contemporaneous invoices or good-faith estimates, and (iii) South Carolina statutory standards excluding Ordinary Wear and Tear.
2. Survival. The representations in this § IV survive Tenant’s acceptance of the Net Amount Returned.

V. COVENANTS & RESTRICTIONS

1. Tenant shall promptly endorse and negotiate any refund check and, if ACH is elected, provide accurate routing instructions.
2. Landlord shall retain supporting documentation for not less than twenty-four (24) months and make the same available for Tenant’s reasonable review upon written request.

VI. DEFAULT & REMEDIES

1. Tenant Default. Failure to raise objections within the Objection Period constitutes waiver of any claim inconsistent with this Letter, except to the extent such waiver is prohibited by statute.
2. Landlord Default. Should Landlord fail to comply with § 27-40-410, Tenant may recover the property and money due together with damages in an amount equal to twice the amount wrongfully withheld, plus reasonable attorney’s fees. S.C. Code Ann. § 27-40-410(c).

VII. RISK ALLOCATION

1. Limitation of Liability. Landlord’s liability relating to the Security Deposit is limited to the statutory remedies expressly provided under S.C. Code Ann. § 27-40-410; punitive or consequential damages are expressly disclaimed to the fullest extent permitted by law.
2. Insurance. Tenant acknowledges that deductions for property damage are calculated after application of any applicable insurance proceeds.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Letter shall be governed by and construed in accordance with the laws of the State of South Carolina, without regard to conflict-of-laws principles.
2. Forum Selection. Any action arising out of or relating to this Letter shall be brought exclusively in the competent housing or magistrate court sitting in the county where the Premises are located.
3. Arbitration. The parties expressly exclude arbitration.
4. Jury Trial. Nothing herein shall be construed as a waiver of either party’s constitutional right to a trial by jury.
5. Injunctive Relief. The parties agree that money damages are an adequate remedy; injunctive or equitable relief is neither requested nor required.

IX. GENERAL PROVISIONS

1. Entire Agreement. This Letter, together with any attachments, constitutes the entire statement of the Security Deposit disposition and supersedes any prior oral or written communications on that subject.
2. Amendment; Waiver. No amendment or waiver of any provision hereof shall be effective unless set forth in a written instrument executed by both parties.
3. Assignment. Neither party may assign its rights or obligations relating to this Letter without the prior written consent of the other, except as may be required by law or in connection with a bona-fide sale of the Premises.
4. Severability. If any provision of this Letter is found unenforceable, the remaining provisions shall remain in full force to the maximum extent permitted by law.
5. Counterparts; Electronic Signatures. This Letter may be executed in multiple counterparts (each deemed an original) and delivered electronically (e.g., PDF or DocuSign); such delivery shall be treated as if an original had been delivered.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned have executed this Security Deposit Disposition & Itemization Letter as of the Effective Date.

LANDLORD:

[LANDLORD LEGAL NAME]
By: ______
Name: [_]
Title: [_]
Date: ___

TENANT:
(acknowledgment of receipt only)

[TENANT LEGAL NAME]
Date: ____

[// GUIDANCE: Notarization is NOT required under SC law for deposit disposition letters, but Landlord may elect to include a jurat for added evidentiary weight.]

ATTACHMENTS

A. Copies of Invoices/Receipts
B. Photographs from Move-Out Inspection
C. Lease Excerpts (Condition of Premises & Security Deposit Provisions)