What is a North Dakota Lease Agreement?
North Dakota lease agreements are written agreements which are executed by lessor and lessee parties for the possession of property. The property subject to the Lease agreement can be real property, but is most often used for the leasing of personal property. These Lease agreements are legally enforceable contract documents . A North Dakota Lease should contain certain essential terms. A description of the leased premises, the amount of the rent and how it should be paid, the term of the tenancy, and any rules/conditions/charges should all be included. For North Dakota Lease agreements for real property additional provisions addressing landlord/tenant rights and obligations are recommended.
Essential Components of a North Dakota Lease Agreement
Contracted parties: The lease must state the lessor (landlord) and lessee (tenant) and thereby identify who is bound by the provision of the lease.
Property description: The lease must precisely describe the property subject to the lease, as for sale contracts, with the exact legal description typically used to describe the property. However, some leases are verbal agreements, so an exact legal description may not exist.
Lease term: The lease must specify the duration of the agreement, starting and ending dates.
Rent: The lease must specify the amount of rent due, generally listed on a monthly basis, and when it must be paid.
Agreements: Other provisions between parties can be written into the lease. For example, the lessor and lessee may agree about who is responsible to pay for certain items.
A tenant that breaches the terms of the lease may be liable to whatever damages the lessor suffered as the result of the breach.
Landlord and Tenant Rights and Duties
Section 8: Rights and Responsibilities of Landlords and Tenants
Both landlords and tenants have certain rights and responsibilities when entering into a lease agreement, regardless of the state in which they reside. In North Dakota specifically, these rights are outlined in the North Dakota Century Code Section 47-16-01 et seq.
Tenant Rights
The main rights of tenants under North Dakota law cover tenant occupancy, landlord access, and maintenance of rental property. Tenants have a right to full use of the rental property without interference from the landlord or their designated representatives. Landlords may enter the property for repair purposes, to allow prospective new tenants to view the property, or in emergencies. Tenants must give landlords reasonable notice if they are to be absent from the property for longer than three consecutive days, so the landlord may be aware of the property’s condition and whether any maintenance issues require attention while the tenant is away.
Under North Dakota law, landlords are considered legally responsible for ensuring safe and habitable conditions on a property. The following list outlines the landlord’s maintenance obligations:
If the property is a single-family home and the rental agreement states that the landlord will provide water, hot water, or heat, they are required to maintain those provisions for the duration of the lease agreement. If the property is an apartment building, the landlord must provide and maintain services for electricity, water, garbage collection, and heat, as well as hot water in some circumstances.
Landlord Rights
Under the law, the landlord has the right to require the tenant to pay or claim the following items as part of their rent:
Rental agreements taking place in North Dakota may require the tenant to pay for water damage or repairs caused by the tenant, plus any damages to the property caused by such damages. Landlords are also entitled to collect a fee if the tenant brings their rent check in late, which may not exceed $10. Damages to a property caused by the actions of the landlord do not fall under the responsivity of the tenant.
If a rental agreement stipulates that a tenant is responsible for providing any utilities, they may deduct the costs of those utilities up to the amount of rent that they owe. The tenant must give the landlord a written request for permission to deduct the costs of utilities before submitting the payment to the landlord.
How to Prepare a Lease Agreement in North Dakota
The first thing you’ll need to draft a North Dakota Lease Agreement is some information about the property and the parties:
Your name as "Landlord"
Your Address
Your phone number
Your email
Tenant’s full name
Tenant’s Social Security Number
Tenant’s current address
Tenant’s phone number
Tenant’s email
The physical address of the Property
The contact name of a person at the property
The contact name of the person most responsible for tenant matters
The term of the Lease, whether it be month-to-month or for a specified time
The amount of Rent due
The timing of when Rent is due – first of the month, etc.
Where Rent is to be paid
Who utilities are in the name of, what utilities are included in the rent, what utilities are not included
Any additional terms or clauses necessary for enforcement of the lease
Other terms as necessary
Once you have the above information, you may then begin drafting your North Dakota Lease Agreement using your own format or that provided by a reputable online legal provider, such as North Dakota Legal Forms.
The next step will be to include all of the above information in addition to language such as:
"Landlord hereby leases, rents and demises the Premises unto Tenant for the term, at the Rent, and subject to the covenants, conditions and agreements herein contained."
"Tenant shall not use the Premises, or permit the Premises to be used for any illegal or unlawful purpose."
The "Use of Premises" section of your lease should detail exactly what the tenant will be able to do to the property and what he will not. Consider things like subleasing, storage, repairs, cleaning and any restrictions on the use of appliances or fixtures.
"Tenant shall pay Landlord a late fee in the amount of $[amount] for failure to pay the Rent within [number of days] days after the Rent is due."
The "Rent" section of your lease should detail exactly how much your tenant is to pay each month.
In all situations, be sure you have a document that is acceptable in the state of North Dakota and that it is drafted in accordance with the state’s landlord/tenant laws.
Unless there is something significant that would change the format of the Lease, such as specific statutes, the language discussed herein will provide the basis for enforcement.
Many additional clauses may be added for your own protection. Identify liability of parties, explain security deposits and appoint an agent for service of process. Disclose whether the premises are in a flood zone, and whether coded or uncoded trailers may be permitted. Always ensure you have sufficient funds available to cover the tenant’s move-out.
Amending and Ending a Lease Agreement
One of the better aspects to considering a lease agreement is that it can be changed if the parties are in agreement. If, for example, at the time of the lease a party is unsure of the exact size of the property that will be rented, after some time of use if both parties agree to a reduction or increase in size a written amending lease agreement should be entered into. However, a brand new lease agreement should be drafted , not an addition to the original lease.
Terminating a lease is slightly less straightforward. In North Dakota either party may terminate an agreement, but the landlord or tenant must provide the other with at least 30 days’ notice to terminate. The ending of a lease must be in writing irrespective of the original lease having or not having been a written document. An option to renew or extend clause may contain a request, by either party, to terminate a lease.
Common Issues and Resolutions
Despite all the components that make up a North Dakota lease agreement, certain disputes tend to rise to the surface regardless. Fortunately, a number of solutions are available to help address these common disputes. The first dispute revolves around the process involved in preparing and signing the lease agreement. Because of the high number of people involved in the process of creating a lease, it’s common for misinformation to fly around during the process. It’s best to keep one person responsible for the creation of the lease—preferably the property owner or an experienced commercial real estate broker—to limit the potential for misunderstandings. If there is any question of the terms being approved before the lease has been signed, the property should be considered "under offer" until the lease is finalized. Another common dispute relates to rent payments. Often, landlords will expect rent payments to be made in cash, whereas the tenant will expect to submit a cheque. In these situations, it’s imperative that payment terms be outlined in the lease agreement—all parties should be aware of how and when payments are expected to be made and how late payments will affect the lease agreement. It’s also common for tenants and landlords to disagree on the terms for repairs and maintenance. This can include unforeseen costs that the tenant feels that the landlord should have disclosed, or general safety and liability measures that the landlord expects of the tenant. Again, it’s crucial to refer to the lease agreement and have specific terms in mind before beginning negotiations. Finally, many disputes stem from cost increases. These may include increases to rent, utilities, common area expenses (in the case of commercial leases) and property taxes. It’s vital that you outline these costs in the lease agreement to help avoid confusions and disputes.
Conclusion and Legal References
Grasping the complexities of lease agreements in North Dakota is not just important for property owners and landlords, but for tenants and renters as well. Whether you are entering into a new residential lease or negotiating a commercial lease agreement, understanding your rights and obligations is essential to protecting your interest. Hopefully, this guide has given you a comprehensive insight into the world of North Dakota lease agreements.
If you require further information or legal advice, a number of government and nonprofit organizations can provide assistance:
North Dakota Division of Community Services and Housing
This state agency provides support and resources for both property owners and tenants. Their website can be found here .
North Dakota Consumer Resources
This site offers valuable information on consumer rights in North Dakota, including areas related to tenant rights. The site can be accessed here.
North Dakota Housing Finance Agency
This state agency handles inquiries relating to affordable housing programs. They can be contacted through their website, found here.
North Dakota Tenants’ Association
This nonprofit organization works to protect the rights of tenants in North Dakota and offers guides on tenant responsibilities and rights. They can be reached at the following link.
North Dakota State University Extension
NDSU Extension has a wealth of information on various topics, including landlord-tenant relations. Their website can be found here.