RESIDENTIAL LEASE ADDENDUM

LATE FEE — STATE OF DELAWARE

I. DOCUMENT HEADER

1. Parties
   This Residential Lease Addendum – Late Fee (“Addendum”) is entered into as of [EFFECTIVE DATE] by and between [LANDLORD LEGAL NAME] (“Landlord”) and [TENANT LEGAL NAME] (“Tenant,” and together with Landlord, the “Parties”).

2. Recitals
   A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) for the premises located at [PROPERTY ADDRESS] (the “Premises”).
   B. The Parties desire to supplement the Lease to establish the terms and conditions under which late fees may be assessed for untimely rental payments, in strict conformity with Delaware law, including DEL. CODE ANN. tit. 25, § 5501(d).
   C. In consideration of the mutual covenants herein and other good and valuable consideration, the sufficiency of which is acknowledged, the Parties agree as follows.

3. Governance & Jurisdiction
   This Addendum shall be governed by and construed in accordance with the Delaware Residential Landlord-Tenant Code and other applicable laws of the State of Delaware (“Governing Law”).

II. DEFINITIONS

For purposes of this Addendum (capitalized terms not defined herein have the meanings assigned in the Lease):

1. Base Rent: The monthly rent amount due under the Lease, currently $[MONTHLY RENT AMOUNT].
2. Due Date: The calendar date each month on which Base Rent is contractually due under the Lease.
3. Grace Period: The five (5) consecutive-day period immediately following the Due Date, required under DEL. CODE ANN. tit. 25, § 5501(d).
4. Late Fee: The monetary charge assessed pursuant to Section III, not to exceed five percent (5%) of Base Rent in any month.
5. Late Fee Notice: A written notice delivered by Landlord advising Tenant of an assessed Late Fee, substantially in the form attached hereto as Exhibit A or otherwise compliant with Section V(2).
6. Lease: As defined in the Recitals.

III. OPERATIVE PROVISIONS

1. Authorization of Late Fee
   If Tenant fails to remit the full amount of Base Rent before expiration of the Grace Period, Landlord may assess a Late Fee in an amount equal to [___% — NOT TO EXCEED 5%] of the then-current Base Rent (“Late Fee Cap”).
   [// GUIDANCE: Select a percentage ≤ 5% OR insert a fixed dollar figure that does not exceed 5% of Base Rent.]

2. Calculation & Accrual
   a. Late Fees accrue once per rental period; compounding or daily accrual is prohibited.
   b. Partial payments are applied first to outstanding Base Rent, then to Late Fees.

3. Written Late Fee Notice Requirement
   Landlord shall provide Tenant a Late Fee Notice specifying:
   • the amount of Base Rent unpaid;
   • the Late Fee amount;
   • the total balance due; and
   • acceptable payment methods.

4. Treatment as Additional Rent
   All Late Fees constitute “Additional Rent” under the Lease and are subject to the same remedies for non-payment, including but not limited to summary possession proceedings.

5. Non-Waiver
   Landlord’s acceptance of partial rent or failure to enforce any provision herein shall not constitute a waiver of Landlord’s rights.

IV. REPRESENTATIONS & WARRANTIES

1. Landlord represents and warrants that this Addendum complies with all applicable statutes, ordinances, and regulations.
2. Tenant represents and warrants that (i) Tenant has read and understands this Addendum; and (ii) Tenant received a copy of this Addendum before execution.
3. Survival: The representations and warranties in this Section survive expiration or earlier termination of the Lease.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenants
   a. Timely payment of Base Rent within the Grace Period.
   b. Payment of any properly assessed Late Fee within [NUMBER] days after receipt of the Late Fee Notice.
2. Landlord Covenants
   a. Issuance of a Late Fee Notice prior to imposing legal remedies.
   b. Compliance with the Late Fee Cap and all notice requirements in DEL. CODE ANN. tit. 25, § 5501(d).
3. Notice Addresses
   All notices shall be delivered in accordance with Lease Section [__] to the addresses set forth therein or such other addresses as either Party may designate.

VI. DEFAULT & REMEDIES

1. Events of Default
   a. Tenant’s failure to pay any Late Fee within the period stated in Section V(1)(b).
2. Cure Period
   Tenant shall have [CURE PERIOD – e.g., 5] days after delivery of a written default notice to cure by payment in full.
3. Remedies
   Upon an uncured default, Landlord may:
   i. declare all sums immediately due;
   ii. institute summary possession actions in the Justice of the Peace Court; and
   iii. recover reasonable attorney’s fees and court costs as permitted by law and the Lease.

VII. RISK ALLOCATION

1. Indemnification
   Not applicable (per Parties’ agreement and metadata).
2. Limitation of Liability
   Liability of either Party for monetary damages related to Late Fees is limited to the amounts expressly permitted by DEL. CODE ANN. tit. 25, § 5501(d) and other non-waivable statutory limits.
3. Force Majeure
   Neither Party is liable for failure to perform obligations (other than payment obligations) due to events beyond that Party’s reasonable control.

VIII. DISPUTE RESOLUTION

1. Governing Law
   The laws of the State of Delaware govern this Addendum, without regard to conflicts of law principles.
2. Forum Selection
   Exclusive venue lies in the Delaware Justice of the Peace Court having jurisdiction over landlord-tenant matters (“State Housing Court”).
3. Arbitration
   The Parties expressly exclude arbitration.
4. Jury Trial
   Nothing herein shall be construed as a waiver of either Party’s constitutional right to trial by jury.
5. Injunctive Relief
   Landlord retains the right to seek equitable relief, including possession or eviction, as provided by statute.

IX. GENERAL PROVISIONS

1. Amendment & Waiver
   No amendment or waiver is effective unless in a written instrument executed by both Parties.
2. Assignment
   Assignment or delegation of rights or duties under this Addendum is subject to the restrictions set forth in the Lease.
3. Successors & Assigns
   This Addendum is binding upon and inures to the benefit of the Parties and their respective heirs, successors, and permitted assigns.
4. Severability
   If any provision is held invalid, the remainder shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to remain enforceable.
5. Integration
   This Addendum and the Lease constitute the entire agreement regarding Late Fees, superseding all prior or contemporaneous understandings.
6. Counterparts; Electronic Signatures
   This Addendum may be executed in counterparts and by electronic signatures, each deemed an original and together constituting one instrument.

X. EXECUTION BLOCK

Notary Acknowledgment (if required by the Lease or applicable law)
State of Delaware
County of _
On this ___ day of _, 20__, before me, the undersigned Notary Public, personally appeared ______, who acknowledged that they executed this Addendum for the purposes therein contained.

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Notary Public
My Commission Expires: ____

EXHIBIT A – FORM OF LATE FEE NOTICE

[// GUIDANCE: Attach or insert Landlord’s standard late‐fee notice here. Must include (i) amount of rent due; (ii) Late Fee; (iii) total balance; (iv) cure deadline; and (v) payment instructions.]

[// GUIDANCE: Practitioners should verify current statutory caps and grace-period requirements prior to finalizing. As of the date of drafting, DEL. CODE ANN. tit. 25, § 5501(d) authorizes a maximum Late Fee of 5% of monthly rent and mandates a 5-day grace period.]