Real Estate Broker · Raleigh, NC · Member since 2017 · 174 posts · 69 votes
I own a duplex, no LLC, for security deposit, I read online that for NC it needs to be in a trust acct or a bond for that amount? Can I not put it in a separate personal savings acct? Would that not suffice?
Real Estate Broker · Raleigh, NC · Member since 2017 · 2 posts · 0 votes
8y
Yeah the NC security deposit act is really strict!!!
"§ 42-50. Deposits from the tenant. Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina. The security deposits from the tenant may be held in a trust account outside of the State of North Carolina only if the landlord provides the tenant with an adequate bond in the amount of said deposits. The landlord or his agent shall notify the tenant within 30 days after the beginning of the lease term of the name and address of the bank or institution where his deposit is currently located or the name of the insurance company providing the bond. (1977, c. 914, s. 1; 2015-93, s. 2.)"
Rental Property Investor · Charlotte, NC · Member since 2013 · 491 posts · 253 votes
8y
From the statute that Timothy Neubauer listed the security deposit needs to be in a bank that has a physical branch in NC. Otherwise if it is an online only bank you will still have to get a bond.
I mainly do my banking online as well, but opened an account with a local bank to hold the deposits.
Investor · Cornelius, NC · Member since 2017 · 114 posts · 20 votes
8y
I agree with Chris T and it has to be in an escrow or a trust account
That has to be a bank that has a physical address in the state of North Carolina.