The North Dakota lease agreement is a legal document that outlines the terms and conditions for the lease of property in the state of North Dakota.
The main contractual parties to this lease agreement are the landlord (lessor) and the tenant (lessee). They use the lease agreement to define details about:
Mandatory Information
Duration of the lease
Rent amount and due date
Disclosures required by federal and state law
Rights and duties of the landlord and the tenant
Rules about the lease agreement termination
Contractual parties are free to insert any provision in their lease agreement as long as it is not considered invalid or illegal by federal and state legislation.
The lease agreement drafting process usually starts after the tenant’s rental application is successfully submitted and reviewed by the landlord.
North Dakota Lease Agreement Required Disclosures
The person writing the lease agreement should pay close attention to the required disclosures that every lease agreement in North Dakota must have, including:
Mandatory Disclousures
Mental capacity. The principal must be of sound mind and capable of making informed decisions. The agent must also have the mental capacity to act on behalf of the principal.
Written form. The document must be in writing and signed by the principal or someone authorized to sign on their behalf.
Witnesses and notarization A power of attorney for property requires the signature of at least one witness and notarization, while a power of attorney for health care only requires the signature of a witness with no notarization needed.
North Dakota Lease Agreement Optional Disclosures
The landlord and the tenant often choose to include some additional disclosures besides the ones declared mandatory by federal and state law, such as:
Optional Disclosures
Bed bug disclosure. The landlord must inform the tenant if there is a history of bed bug infestation at the leased unit. They can additionally provide guidelines on bed bug infestation prevention and measures that need to be taken in case a bed bug infestation appears.
Smoking disclosure. This disclosure can provide the smoking policy at the leased unit. It can completely forbid smoking at the leased property or inform the tenant about the designated smoking areas.
Mold disclosure. The landlord shall inform the tenant about the mold situation at the leased property and ways to prevent it. This will limit the landlord’s liability in case any mold-related damages occur.
Consequences of Non-Disclosure
If the landlord fails to inform the tenant about the presence of lead-based paint in the property, they can be held liable and pay up to $19,507 in penalties. (24 CFR § 30.65)
The landlord can face a civil lawsuit from the tenant if any damage occurs due to the non-disclosure of health and safety hazards in the lease agreement.
North Dakota Lease Agreement Security Deposits
Security Deposit Maximum
The maximum security deposit allowed in North Dakota is equal to one month's rent. (§ 47-16-07.1)
There are a few exceptions where the security deposit limit is equal to two months' rent if the tenant:
Exceptions
Is convicted of a felony
Has a judgment against them for violating the terms of the previous lease agreement
The landlord can separately charge a pet deposit of no more than $2,500 or two months' rent, whichever is higher. The pet deposit should not be charged for the service animal.
Every security deposit in North Dakota must be kept in a federally insured interest-bearing savings or checking account.
Security Deposit Return
The security deposit, or any remaining part, must be returned to the tenant within 30 days from the end of the lease. If the lease term is longer than nine months, the security deposit should include interest on the amount kept.
The landlord should also make an itemized list of all the deductions made for repairs, cleaning, or due rent and send it along with any remaining security deposit amount.
When is Rent Due in North Dakota? (Grace Period)
The due date is usually mutually agreed upon by the contractual parties and inserted in the lease agreement. In case there is no due date specified in the lease agreement, the North Dakota law provides that the rent for a residential lease shall be paid at the end of each month. (§ 47-16-20)
There is no grace period provided for the rent payment in North Dakota. The landlord can start charging late fees as soon as the rent is due or start the eviction after issuing a 3-day notice to the tenant to pay or quit.
North Dakota Rent Late Fees
The North Dakota law doesn’t set the maximum late fee that can be charged to the tenant.
The landlord can therefore set any amount they deem reasonable. However, regardless of the amount, any late fee should be stipulated in the lease agreement to be legally charged to the tenant.
North Dakota NSF Checks
If the tenant issues a bad check for the rent payment, the landlord shall be properly compensated. The compensation includes the amount of the check plus an additional fee of no more than $40. (§ 6-8-16.2a)
North Dakota Landlord’s Right to Enter
The landlord can access the property at any time and without giving prior notice in the following cases:
Reasons for Entry
In case of emergency
When the landlord can reasonably believe that the tenant abandoned the leased unit
If the landlord can reasonably believe that the tenant is substantially violating the lease agreement
In all the other cases, the landlord must provide reasonable notice to the tenant before visiting the property and limit their visits only to reasonable times. (§ 47-16-7.3)
North Dakota Lease Agreement FAQ
Yes, the North Dakota lease agreement is a legally binding document.
In the event that some of the provisions of the lease agreement are invalid or prohibited by federal or state laws, this shall not affect the validity of the lease agreement as a whole unless otherwise provided in the lease agreement or by federal or state legislation.
Most of the lease agreements in North Dakota shall be organized in the manner as presented below:
Names, addresses, and ID numbers of the parties
Details about the leased property
Duration of the lease
Rent amount, payment method, and due date
Disclosure of any non-refundable or late fees (if applicable)
Safety and health hazard disclosures
House rules
Rights and duties of the landlord and the tenant
Rules about the lease agreement termination
Date and place of the lease agreement signature
Signatures of the landlord and the tenant
The best way to get your own lease agreement for the property located in North Dakota is to download one of the lease agreement templates available on our website.
This way, you will be sure that your North Dakota lease agreement is in accordance with all the required federal and state rules and regulations.
After you have signed your lease agreement, you shall start the move-in procedure.
This usually includes the leased property inspection, signature of the move-in form, payment of the first month’s rent and security deposit, and property key handover.