Forfeiture

Full Definition

Forfeiture in security deposit law means the landlord loses the legal right to keep any part of the deposit -- including amounts that might otherwise have been valid deductions -- because of a procedural failure such as missing the deadline to return the deposit or failing to provide an itemized statement. Forfeiture is a significant and often misunderstood remedy: it is not just a penalty added on top, it means that even legitimate damage claims become uncollectable. For example, if a landlord in Washington State misses the 21-day return deadline, they forfeit the right to deduct anything, even if the tenant genuinely damaged the apartment. The policy rationale is to create strong compliance incentives: landlords who want to make deductions must follow the rules precisely. In practice, forfeiture often applies even when the landlord sends an itemized statement but it is defective -- for instance, it fails to include the required specificity or is not accompanied by required receipts.