LATE FEE ADDENDUM
to Residential Lease Agreement – State of Indiana
[// GUIDANCE: Attach this Addendum to, and incorporate it by reference into, the operative Residential Lease Agreement (the “Lease”). All capitalized terms not defined herein have the meanings ascribed to them in the Lease.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
This Late Fee Addendum (the “Addendum”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between [LANDLORD LEGAL NAME] (“Landlord”) and [TENANT LEGAL NAME(S)] (“Tenant”), collectively, the “Parties,” and shall be deemed part of, and incorporated into, that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) for the premises commonly known as [PROPERTY ADDRESS] (the “Premises”).
Recitals
A. The Parties desire to supplement the Lease to address late payment of Rent and related charges in accordance with applicable Indiana landlord-tenant law.
B. In consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows.
2. DEFINITIONS
For purposes of this Addendum, the following terms have the meanings set forth below:
“Due Date” means the first (1st) calendar day of each month during the Term unless another date is specified in Section 3.1(a).
“Grace Period” means the period commencing on the Due Date and ending at 11:59 p.m., local time at the Premises, on the [GRACE PERIOD]th calendar day of the month.
“Late Fee” means the charge imposed under Section 3.2 for Tenant’s failure to remit Rent in full before expiration of the Grace Period.
“Notice of Non-Payment” means written notice given pursuant to Ind. Code § 32-31-1-8 (10-day notice to pay or quit) or any successor statute.
“Rent” has the meaning assigned in the Lease and includes, for avoidance of doubt, the Late Fee when accrued.
3. OPERATIVE PROVISIONS
3.1 Rent Timing
(a) Tenant shall tender the full amount of monthly Rent to Landlord on or before the Due Date at the location and in the manner set forth in the Lease.
(b) Grace Period. Tenant shall not incur a Late Fee if the full Rent is received before the expiration of the Grace Period. Nothing herein extends any statutory pay-or-quit notice period.
3.2 Late Fee Assessment
(a) If Rent remains unpaid in whole or in part after the Grace Period, Landlord may assess a Late Fee equal to the lesser of:
(i) Flat Fee Method: $[LATE FEE FLAT AMOUNT] per occurrence; or
(ii) Percentage Method: [LATE FEE PERCENTAGE]% of the outstanding Rent balance;
provided, however, that the selected method is identified by checking the applicable box below:
[ ] Flat Fee [ ] Percentage.
(b) Statutory Compliance. Indiana law imposes no express numerical cap on late fees; however, any Late Fee must be reasonable and non-punitive under general contract principles. Landlord represents that the Late Fee established herein is a reasonable estimate of administrative costs occasioned by late payment.
(c) Additional Rent. Any Late Fee assessed shall be deemed Additional Rent, collectible and enforceable as Rent under the Lease.
3.3 Application of Payments
Payments received shall be applied in the following order: (i) outstanding Late Fees, (ii) accrued charges under the Lease, then (iii) current Rent.
3.4 Non-Waiver
Acceptance of Rent or Late Fees after they become due does not constitute a waiver of Landlord’s right to enforce any provision of this Addendum or the Lease.
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Authority
Each Party represents that it has full legal right, power, and authority to execute and deliver this Addendum and to perform its obligations hereunder.
4.2 Tenant Warranty of Accuracy
Tenant warrants that all information supplied to Landlord concerning payment methods and contact details is true, complete, and accurate.
4.3 Survival
The representations and warranties set forth in this Section 4 shall survive the expiration or earlier termination of the Lease to the extent necessary to enforce accrued obligations.
5. COVENANTS & RESTRICTIONS
5.1 Tenant Covenants
(a) To remit Rent on or before the Due Date each month.
(b) To notify Landlord in writing of any anticipated inability to pay Rent on time at least ____ days before the Due Date. [// GUIDANCE: insert number or leave blank if not providing advance-notice option.]
5.2 Landlord Covenant
Landlord shall deliver any Notice of Non-Payment in a manner consistent with Ind. Code § 32-31-1-8 and the notice provisions of the Lease.
6. DEFAULT & REMEDIES
6.1 Events of Default
(a) Failure to pay Rent (including Late Fees) within the Grace Period.
(b) Failure to cure monetary default within ten (10) days after delivery of a Notice of Non-Payment.
6.2 Remedies
(a) Acceleration of all sums due under the Lease.
(b) Commencement of eviction proceedings pursuant to Indiana law.
(c) Recovery of attorneys’ fees and court costs as provided in the Lease and Ind. Code § 32-31-1-8(d).
6.3 Cumulative Rights
Remedies are cumulative and not exclusive of any rights provided under the Lease, statute, or equity.
7. RISK ALLOCATION
[// GUIDANCE: Per the metadata, indemnification is “not_applicable,” and liability is subject to “statutory_limits.” This Section therefore intentionally contains no indemnity or expanded liability language.]
7.1 Limitation of Liability
Neither Party shall be liable for consequential or punitive damages arising out of late payment of Rent, except as may be expressly provided under applicable Indiana law.
7.2 Force Majeure
Payment obligations are generally not excused by force majeure; however, Landlord may, in its sole discretion, defer Late Fees during a state-declared emergency.
8. DISPUTE RESOLUTION
8.1 Governing Law
This Addendum and any disputes hereunder shall be governed by the laws of the State of Indiana without regard to conflict-of-laws principles.
8.2 Forum Selection
Exclusive venue lies in the appropriate housing or small-claims court located in the county where the Premises are situated.
8.3 Arbitration
The Parties expressly opt out of arbitration for disputes arising under this Addendum.
8.4 Jury Trial
Nothing herein shall constitute a waiver of any Party’s constitutional right to a trial by jury.
8.5 Injunctive Relief
Landlord’s right to seek eviction or other injunctive relief is expressly preserved.
9. GENERAL PROVISIONS
9.1 Amendment and Waiver
No amendment or waiver of any provision of this Addendum is effective unless in writing and signed by both Parties.
9.2 Assignment
Tenant may not assign this Addendum or the Lease without Landlord’s prior written consent.
9.3 Severability
If any provision of this Addendum is held unenforceable, the remainder shall remain in full force and effect.
9.4 Integration
This Addendum, together with the Lease, constitutes the entire agreement with respect to its subject matter and supersedes all prior or contemporaneous communications.
9.5 Electronic Signatures
Signatures transmitted in counterpart or via electronic means (e.g., DocuSign, PDF) shall be deemed originals and binding.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Late Fee Addendum as of the Effective Date.
| Landlord | Tenant |
|---|---|
| _________ | _________ |
| Name: ____ | Name: ____ |
| Title (if applicable): ______ | Date: ____ |
| Date: ____ |
[// GUIDANCE: Notarization is generally not required for a residential lease addendum in Indiana; include if local practice demands. If witnesses are customary, add signature lines below.]
Statutory Reference: Notice period referenced in Section 5.2 and Section 6 is derived from Ind. Code § 32-31-1-8 (10-day notice to pay or quit).
DISCLAIMER: This template is a starting point. Indiana municipalities may impose additional late-fee or grace-period limits. Counsel should confirm compliance with any local ordinances and update placeholders before use.