SECURITY DEPOSIT ITEMIZATION & RETURN LETTER

(Tennessee – Compliant with Tenn. Code Ann. § 66-28-301)

[// GUIDANCE: This template is drafted for use by Tennessee residential landlords when accounting for and returning a tenant’s security deposit. It assumes applicability of the Tennessee Uniform Residential Landlord and Tenant Act (“URLTA”), Tenn. Code Ann. § 66-28-101 et seq. Counsel should confirm county population thresholds and any local ordinances before use.]

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I. DOCUMENT HEADER
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1. Document Title
   Security Deposit Itemization & Return Letter (the “Letter”)

2. Parties
   a. “Landlord”: [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE], with a principal place of business at [LANDLORD ADDRESS].
   b. “Tenant”: [TENANT LEGAL NAME], last-known mailing address: [TENANT ADDRESS].

3. Recitals
   a. Tenant and Landlord entered into that certain Residential Lease dated [LEASE DATE] for the premises known as [PROPERTY ADDRESS] (the “Premises”).
   b. Tenant delivered a security deposit in the amount of $[ORIGINAL DEPOSIT] (the “Security Deposit”) to Landlord.
   c. The tenancy terminated effective [MOVE-OUT DATE] (the “Termination Date”).
   d. Landlord now provides an itemized statement of any lawful deductions and returns the undisputed balance in accordance with Tenn. Code Ann. § 66-28-301 (the “Act”).

4. Effective Date
   This Letter is effective as of [MAILING DATE] (the “Effective Date”).

5. Jurisdiction Specification
   This Letter and any related dispute shall be governed by Tennessee residential landlord-tenant law, including the Act, without regard to conflict-of-law principles.

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II. DEFINITIONS
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For purposes of this Letter, the following capitalized terms have the meanings set forth below. All other capitalized terms have the meanings given in the Lease or applicable law.

“Delivery Address” – Tenant’s last-known or designated address for receipt of notices, identified above.

“Normal Wear and Tear” – Deterioration that occurs without negligence, carelessness, accident, or abuse, consistent with Tenn. Code Ann. § 66-28-301(b).

“Permitted Deduction” – A deduction from the Security Deposit expressly authorized by the Act or the Lease, including (i) unpaid rent, (ii) damages to the Premises beyond Normal Wear and Tear, and (iii) other amounts expressly permitted under Tenn. Code Ann. § 66-28-301(c).

“Statement” – The itemized accounting set forth in Section III.B.

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III. OPERATIVE PROVISIONS
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A. Original Deposit
Amount originally paid: $[ORIGINAL DEPOSIT].

B. Itemized Statement of Permitted Deductions

C. Deposit Reconciliation

Original Deposit $ [ORIGINAL DEPOSIT]
(–) Total Permitted Deductions $ [TOTAL DEDUCTIONS]
= Balance Due Tenant $ [REFUND AMOUNT]

[Landlord ☐ ENCL0SES / ☐ WILL REMIT] a check numbered [CHECK #] in the amount of $[REFUND AMOUNT] payable to Tenant.

D. Tenant Inspection and Acknowledgment Rights
1. Tenant was afforded an opportunity to be present at the joint move-out inspection on [INSPECTION DATE], consistent with Act § 66-28-301(d).
2. Should Tenant dispute any item in this Statement, Tenant must deliver written notice to Landlord at the address below within [14] calendar days of Tenant’s receipt of this Letter, specifying the precise amount and basis of the dispute (the “Dispute Notice”).
3. Failure to timely submit a Dispute Notice shall constitute Tenant’s acknowledgment that the Statement is accurate and complete.

E. Statutory Compliance Certification
Landlord certifies that:
i. The Security Deposit is (and at all relevant times was) held in a separate account used solely for security deposits, the location of which was previously disclosed to Tenant in compliance with Act § 66-28-301(a).
ii. All deductions itemized herein are limited to Permitted Deductions and do not include Normal Wear and Tear.
iii. This Letter is mailed within thirty (30) days of the Termination Date, as required by Act § 66-28-301(g).

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IV. REPRESENTATIONS & WARRANTIES
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4.1 Landlord’s Representations
a. Accuracy. The Statement is true, correct, and complete in all material respects.
b. Compliance. Landlord has complied in good faith with all requirements of the Act.

4.2 Tenant’s Representations (optional acknowledgment)
Should Tenant execute the acknowledgment below, Tenant represents that Tenant has received the Statement and the refund check (if any).

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V. COVENANTS & RESTRICTIONS
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5.1 Landlord Covenants
a. Payment. Landlord shall honor any check delivered herewith for a period of not less than ninety (90) days.
b. Record Retention. Landlord will retain copies of all invoices, photographs, and inspection reports for at least two (2) years after the Termination Date.

5.2 Tenant Covenants
a. Forwarding Address. Tenant shall promptly update Landlord in writing of any change to Tenant’s Delivery Address until the earlier of (i) final resolution of all disputes concerning the Security Deposit, or (ii) one (1) year after the Termination Date.

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VI. DEFAULT & REMEDIES
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6.1 Landlord Default
Failure by Landlord to comply with the Act may result in Landlord’s forfeiture of the right to retain any portion of the Security Deposit and liability for statutory damages, court costs, and reasonable attorneys’ fees as permitted under Tenn. Code Ann. § 66-28-301(h).

6.2 Tenant Default
Failure by Tenant to provide a timely and specific Dispute Notice as set forth in Section III.D constitutes a waiver of Tenant’s right to contest the Statement, absent manifest error or fraud.

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VII. RISK ALLOCATION
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7.1 Indemnification
Not applicable per the Metadata instructions.

7.2 Limitation of Liability
Landlord’s liability arising from or relating to the Security Deposit shall be limited to the remedies expressly provided in the Act and shall not exceed the statutory penalties therein.

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VIII. DISPUTE RESOLUTION
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8.1 Governing Law
This Letter and any dispute hereunder shall be governed by the laws of the State of Tennessee, including the Act.

8.2 Forum Selection
Any action arising out of this Letter shall be brought exclusively in the state housing court (or, if none, the General Sessions Court) having jurisdiction over the Premises.

8.3 Arbitration
Arbitration is expressly excluded.

8.4 Jury Trial
Nothing herein shall be construed as a waiver of either party’s constitutional right to a trial by jury.

8.5 Injunctive Relief
The parties acknowledge that disputes hereunder are limited to money damages.

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IX. GENERAL PROVISIONS
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9.1 Amendments and Waivers
No amendment or waiver of any provision of this Letter shall be effective unless in a writing signed by the party against whom enforcement is sought.

9.2 Assignment
Neither party may assign rights or delegate duties under this Letter except as permitted by applicable law.

9.3 Successors and Assigns
This Letter shall bind and benefit the parties and their respective successors and permitted assigns.

9.4 Severability
If any provision of this Letter is held unenforceable, the remaining provisions shall remain in full force to the maximum extent permitted by law.

9.5 Integration
This Letter constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior communications relating thereto.

9.6 Counterparts; Electronic Signatures
This Letter may be executed in counterparts, each of which is deemed an original, and signatures transmitted electronically shall be deemed original signatures for all purposes.

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X. EXECUTION BLOCK
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Executed as of the Effective Date.

LANDLORD:

[AUTHORIZED SIGNATORY NAME]
[Title], [LANDLORD LEGAL NAME]
Date: _________

TENANT ACKNOWLEDGMENT (optional):
By signing below, Tenant acknowledges receipt of this Letter and, if applicable, the enclosed refund check. Execution does NOT waive Tenant’s right to dispute any item within the timeframe set forth herein.

[TENANT NAME]
Date: _________

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ATTACHMENTS (list as applicable)
1. Move-Out Inspection Report dated [INSPECTION DATE]
2. Photographic Evidence (_ pages)
3. Repair/Replacement Invoices (_ pages)
4. Rent Ledger (____ pages)

[// GUIDANCE: Counsel should (i) verify accuracy of all figures and supporting documentation, (ii) adjust time periods if the Lease affords more generous tenant protections, and (iii) confirm that certified mail or other service method satisfies local notice requirements.]