Sec. 12. (a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to:

(1) the payment of accrued rent;

Terms Used In Indiana Code 32-31-3-12

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
  • landlord: means :

    Indiana Code 32-31-3-3

  • owner: means one (1) or more persons in whom is vested all or part of the legal title to property. See Indiana Code 32-31-3-4
  • rent: includes all payments made to a landlord under a rental agreement except a security deposit, however denominated. See Indiana Code 32-31-3-6
  • rental agreement: means an agreement together with any modifications, embodying the terms and conditions concerning the use and occupancy of a rental unit. See Indiana Code 32-31-3-7
  • security deposit: means a deposit paid by a tenant to the landlord or the landlord's agent to be held for all or a part of the term of the rental agreement to secure performance of any obligation of the tenant under the rental agreement. See Indiana Code 32-31-3-9
  • tenant: means an individual who occupies a rental unit:

    Indiana Code 32-31-3-10

(2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant’s noncompliance with law or the rental agreement; and

(3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;

all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.

     (b) If a landlord fails to comply with subsection (a), a tenant may recover all of the security deposit due the tenant and reasonable attorney‘s fees.

     (c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.

     (d) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.

[Pre-2002 Recodification Citation: 32-7-5-12.]

As added by P.L.2-2002, SEC.16.