North Dakota Standard Residential Lease Agreement

Introduction

A North Dakota standard residential lease agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that establishes the terms and conditions for renting residential property for a fixed term. This agreement governs rent payments, security deposits, maintenance responsibilities, and the rights and obligations of both parties. A typical lease lasts for a one-year period with the option to renew once the term ends. North Dakota residential leases are primarily regulated by the North Dakota Century Code (N.D.C.C.) Chapter 47-16, titled "Leasing of Real Property." ^[1]

The lease outlines the rental price, contract term, prohibited activities, utility expenses, and any additional fees or deposits required by the landlord. Terms are typically negotiated after the tenant has viewed the property and expressed interest. Before signing, landlords commonly verify tenant credentials through a rental application that includes credit reports, employment verification, income verification, and rental history.

Legal Framework

North Dakota's landlord-tenant law is codified primarily in N.D.C.C. Chapter 47-16, which addresses lease creation, landlord and tenant obligations, security deposits, lease termination, and other key aspects of the rental relationship. Under N.D.C.C. 47-16-01, leasing is defined as "a contract by which one gives to another the temporary possession and use of real property for reward and the latter agrees to return such possession to the former at a future time." ^[1]

Under N.D.C.C. 47-16-05, a lease of real property (other than lodgings) is presumed to be for one year from its commencement unless otherwise expressed in the lease. If a tenant remains in possession after the lease expires and the landlord accepts rent, the parties are presumed to have renewed the lease as a month-to-month tenancy per N.D.C.C. 47-16-06.

Required Disclosures

North Dakota law requires landlords to make the following disclosures to tenants before or at the commencement of the tenancy:

Lead-Based Paint Disclosure (federal Requirement)

For all residential properties built before 1978, federal law under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. 4852d) requires landlords to disclose known information about lead-based paint and lead-based paint hazards. Landlords must provide tenants with the EPA pamphlet "Protect Your Family From Lead in Your Home," disclose any known lead-based paint or hazards, and include a Lead Warning Statement in the lease. Tenants must be given a 10-day opportunity to conduct a lead inspection before becoming obligated under the lease. ^[2]

Property Condition Statement

Under N.D.C.C. 47-16-07.2, landlords must provide the tenant with a statement describing the condition of the facilities in and about the premises to be rented at the time of entering a rental agreement. This statement must be agreed to and signed by both the landlord and tenant. The signed statement constitutes prima facie proof of the condition of the facilities and premises at the beginning of the rental agreement. ^[3]

Security Deposit Laws

Maximum Amount

Under N.D.C.C. 47-16-07.1, North Dakota landlords may not demand or receive a security deposit in an amount exceeding one month's rent, with the following exceptions: ^[4]

Pet Deposit: Under N.D.C.C. 47-16-07.1(2), landlords may charge a separate pet security deposit for keeping an animal that is not a service animal or companion animal. This pet deposit may not exceed the greater of $2,500 or two months' rent.

Interest-Bearing Account Requirement

Landlords must deposit all security deposit money in a federally insured interest-bearing savings or checking account for the benefit of the tenant. The security deposit and any interest accruing must be paid to the tenant upon termination of the lease, subject to permissible deductions. However, landlords are not required to pay interest if the period of occupancy was less than nine months. ^[4]

Return of Security Deposit

Under N.D.C.C. 47-16-07.1(3), landlords must return the security deposit within 30 days after termination of the lease and delivery of possession by the tenant. If any portion is withheld, the landlord must provide: ^[4]

• An itemized statement of deductions
• The amount due to the tenant
• Delivery or mailing to the tenant's last furnished address

Permissible Deductions

Landlords may apply security deposit money towards:

• Damages caused by the tenant's pet or through negligence of the tenant or tenant's guests
• Unpaid rent
• Costs of cleaning or repairs necessary to return the dwelling to its original state, reasonable wear and tear excepted

Penalties for Improper Withholding

Under N.D.C.C. 47-16-07.1(4), a landlord is liable for treble damages (triple the amount) for any security deposit money withheld without reasonable justification.

Rent Payment Laws

Grace Period

North Dakota law does not require landlords to provide a grace period for rent payment. Under N.D.C.C. 47-16-20, rent is due as stated in the lease or, if no lease exists, at the end of each month. Unless the lease specifies otherwise, rent is due on the agreed-upon date, and landlords may begin eviction proceedings after 3 days of nonpayment. ^[5]

Late Fees

North Dakota does not impose a statutory maximum on late fees. However, late fees should be reasonable and clearly stated in the lease agreement. Courts may refuse to enforce late fees that are deemed excessive or punitive.

Nsf/returned Check Fees

Under N.D.C.C. 6-08-16, landlords may charge up to $40 as a fee for a returned (bounced) check. This fee must be properly disclosed to tenants, typically in the lease agreement. ^[6]

Prohibited Fees

Under N.D.C.C. 47-16-20.1, a landlord may not charge a tenant a fee to accept cash, a check, or a money order for the payment of rent or any other payment required under the lease. ^[7]

Landlord Right of Entry

Under N.D.C.C. 47-16-07.3, landlords have specific rights regarding entry into the dwelling unit: ^[8]

Entry Without Notice (Emergency)

A landlord may enter at any time in case of emergency, if the landlord reasonably believes the tenant has abandoned the premises, or if the landlord reasonably believes the tenant is in substantial violation of the lease terms.

Entry With Notice (non-Emergency)

For non-emergency entry, landlords may enter only during reasonable hours and in a reasonable manner for purposes such as:

• Inspecting the premises
• Making necessary or agreed repairs, decorations, alterations, or improvements
• Supplying necessary or agreed services
• Exhibiting the unit to potential purchasers, insurers, mortgagees, real estate agents, tenants, workmen, or contractors

Unless impractical, the landlord must first notify and receive consent from the tenant (which shall not be unreasonably withheld), identifying a specific time for entry. Consent is presumed from failure to object after notice of intent to enter has been given. A landlord shall not abuse the right of access or use it to harass or intimidate the tenant.

Landlord Maintenance Obligations

Under N.D.C.C. 47-16-13.1, North Dakota landlords have non-waivable duties to maintain rental premises in habitable condition throughout the tenancy: ^[9]

• Comply with applicable building and housing codes affecting health and safety
• Make all repairs necessary to put and keep premises in fit and habitable condition
• Keep all common areas clean and safe
• Maintain all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities in good and safe working order
• Provide appropriate receptacles for garbage and waste removal
• Supply running water and reasonable amounts of hot water at all times, and reasonable heat (unless building is not required by law to be so equipped or heat/water is controlled by tenant)

Written Agreements for Repairs: For single-family residences, landlords and tenants may agree in writing that the tenant will perform specified maintenance or repairs, but only if the agreement is entered into in good faith.

Tenant Maintenance Obligations

Under N.D.C.C. 47-16-13.2, tenants have the following maintenance obligations: ^[10]

• Comply with building and housing codes affecting health and safety
• Keep the premises clean and safe
• Periodically remove garbage and waste
• Keep plumbing fixtures clean
• Use all facilities and appliances reasonably
• Not deliberately or negligently damage the premises
• Conduct themselves in a manner that does not disturb neighbors' peaceful enjoyment

Tenant Remedies for Landlord Violations

Under N.D.C.C. 47-16-13, if a landlord fails to make necessary repairs within a reasonable time after notice, the tenant may: ^[11]

1. Repair and Deduct: Make repairs and deduct the expense from rent, or recover costs from the landlord through other lawful means.

2. Vacate: Vacate the premises and be discharged from further rent payments or other lease obligations.

Under N.D.C.C. 47-16-13.6, any right or action under these provisions is enforceable by legal action, and the court may award reasonable attorney's fees to the prevailing party. ^[12]

Lease Termination

Under N.D.C.C. 47-16-14, a lease terminates by: (1) expiration of the agreed term; (2) mutual consent of the parties; (3) the tenant acquiring title superior to the landlord's; or (4) destruction of the property. ^[13]

Notice Requirements for Month-To-Month Tenancies

Under N.D.C.C. 47-16-15, for month-to-month tenancies, either party must provide at least one calendar month's written notice to terminate. The rent is due and payable through the date of termination. If a landlord changes lease terms under N.D.C.C. 47-16-07, the tenant may terminate with at least 25 days' notice. ^[14]

Automatic Renewal Notice Requirement

Under N.D.C.C. 47-16-06.1, for leases of two months or more with an automatic renewal clause, the landlord must notify the tenant in writing at least 30 days before expiration about the automatic renewal provision. If notice is not given, the lease expires and converts to a month-to-month tenancy. ^[15]

Eviction Process

North Dakota landlords may terminate a lease and initiate eviction proceedings when: ^[16]

Nonpayment of Rent: If rent is not paid within 3 days after it is due, the landlord may serve a 3-Day Notice to Quit for Nonpayment.

Lease Violations: If the tenant uses the property contrary to the lease agreement or fails to make required repairs, the landlord may serve a 3-Day Notice to Quit for Lease Violation.

Holdover: If the tenant remains in possession after the lease term expires without landlord consent.

Domestic Violence Lease Termination

Under N.D.C.C. 47-16-17.1, tenants who are victims of domestic violence (as defined in N.D.C.C. 14-07.1-01) or who fear imminent domestic violence may terminate their lease without penalty or liability. To exercise this right, the tenant must provide advance written notice stating: ^[17]

• The tenant fears imminent domestic violence from a person named in a court order or protection order
• The tenant needs to terminate the tenancy
• The specific date the tenancy will terminate

The tenant is responsible for rent through the termination month plus one additional month's rent (subject to landlord's duty to mitigate). Landlords must keep information about domestic violence confidential and may not refuse to rent based on a tenant's exercise of this right. Violations may result in $1,000 in statutory damages plus actual damages and attorney's fees.

Fair Housing Compliance

All residential leases in North Dakota must comply with federal and state fair housing laws. The federal Fair Housing Act (42 U.S.C. 3601-3619) prohibits discrimination based on race, color, national origin, religion, sex (including sexual orientation and gender identity per HUD guidance), familial status, and disability. ^[18]

North Dakota's Housing Discrimination Act (N.D.C.C. Chapter 14-02.5) provides additional protections prohibiting discrimination based on marital status, receipt of public assistance, age (40 years or older), and status as a domestic abuse victim. ^[19]

Complaints may be filed with the North Dakota Department of Labor and Human Rights at 1-800-582-8032 or with the U.S. Department of Housing and Urban Development (HUD).

Service and Assistance Animals

Under N.D.C.C. 47-16-07.5, landlords may require tenants asserting a disability requiring a service animal or assistance animal to provide reliable supporting documentation from a physician or medical professional confirming the tenant's disability and the relationship between the disability and the need for the accommodation. However, landlords may not require documentation if the disability or need is readily apparent or already known. ^[20]

Fraud Penalties: Under N.D.C.C. 47-16-07.6, individuals who knowingly make false disability claims or provide fraudulent documentation are guilty of an infraction. Landlords may evict such tenants and collect a damage fee of up to $1,000.

Abandoned Property

Under N.D.C.C. 47-16-30.1, property with a total estimated value of not more than $2,500 left on the leased premises may be retained and disposed of by the landlord without legal process 28 or more days after receiving actual notice that the tenant has vacated or after it reasonably appears the tenant has vacated. The landlord is entitled to proceeds from the sale and may recover storage and moving expenses from the security deposit. ^[21]

Rent Control Prohibition

Essential Lease Terms

While North Dakota law does not mandate specific lease provisions (except required disclosures), a comprehensive residential lease should include:

• Names and contact information of all parties
• Property address and description
• Lease term (start and end dates)
• Rent amount, due date, and acceptable payment methods
• Security deposit amount and return conditions
• Pet deposit amount (if applicable)
• Late fee and NSF fee provisions
• Utility responsibilities
• Maintenance and repair responsibilities
• Pet policy
• Rules regarding guests, noise, and common areas
• Entry notice provisions
• Termination and renewal procedures
• Required disclosures (lead paint, property condition)
• Prohibited activities