LATE FEE ADDENDUM

TO RESIDENTIAL LEASE AGREEMENT

(State of North Carolina)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

This Late Fee Addendum (the “Addendum”) is entered into as of [EFFECTIVE DATE] by and between [LANDLORD LEGAL NAME], (“Landlord”), and [TENANT LEGAL NAME(S)], (“Tenant”), collectively the “Parties,” and forms an integral part of that certain Residential Lease Agreement dated [ORIGINAL LEASE DATE] (the “Lease”) covering the real property and dwelling located at [PROPERTY ADDRESS] (the “Premises”).

Recitals
A. Landlord and Tenant are parties to the Lease.
B. The Lease requires timely payment of Rent, and the Parties desire to supplement the Lease to establish late-payment terms in compliance with North Carolina law.
C. In consideration of the mutual promises herein, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows.

II. DEFINITIONS

For purposes of this Addendum, the following terms shall have the meanings set forth below. Defined terms appear capitalized throughout this Addendum.

“Applicable Rent Period” – The period for which a particular Rent payment is due (e.g., monthly or weekly) as specified in the Lease.

“Business Day” – Any calendar day other than a Saturday, Sunday, or North Carolina legal holiday.

“Due Date” – The date on which Rent is contractually due under the Lease.

“Grace Period” – The statutory five-day period beginning on the day immediately following the Due Date, during which late fees may not be assessed.

“Late Fee” – The fee assessed in accordance with Section III(A) for the Tenant’s failure to pay Rent within the Grace Period.

“Rent” – The recurring amount payable by Tenant to Landlord for use and occupancy of the Premises as set forth in the Lease.

III. OPERATIVE PROVISIONS

A. Late Fee Amount
1. Month-to-Month or Longer Tenancies. If Rent is payable monthly, the Late Fee shall equal the greater of (a) five percent (5%) of the monthly Rent, or (b) fifteen dollars ($15.00). See N.C. Gen. Stat. § 42-46(a)(1).
2. Week-to-Week Tenancies. If Rent is payable weekly, the Late Fee shall equal the greater of (a) five percent (5%) of the weekly Rent, or (b) four dollars ($4.00). See N.C. Gen. Stat. § 42-46(a)(2).
3. One-Time Charge. A Late Fee may be assessed only once for each late payment of Rent.

B. Grace Period
1. No Late Fee may be imposed unless the Rent remains unpaid for five (5) full days after the Due Date. N.C. Gen. Stat. § 42-46(a).
2. If the fifth day falls on a weekend or legal holiday, the Grace Period extends to the next Business Day.

C. Notice of Late Fee
1. The Late Fee is deemed disclosed by inclusion of this Addendum in the Lease.
2. Landlord shall provide Tenant written notice of each Late Fee assessment contemporaneously with or promptly after imposition. [// GUIDANCE: Best practice is to deliver notice in the same manner as default notices under the Lease.]

D. Method of Payment
1. Tenant shall remit any Late Fee simultaneously with the next Rent payment unless Landlord specifies an earlier date in the notice provided under Section III(C).
2. Late Fees shall not be deducted from or credited against future Rent payments.

E. Returned Payment Charges
If any Rent payment is dishonored, Landlord may assess a Returned Payment Fee not to exceed twenty-five dollars ($25.00), consistent with N.C. Gen. Stat. § 25-3-506.

IV. REPRESENTATIONS & WARRANTIES

A. Mutual Authority. Each Party represents that it has full legal right, power, and authority to execute and perform this Addendum.

B. Compliance. Landlord represents that assessment and collection of Late Fees pursuant to this Addendum will comply with all applicable federal, state, and local laws and regulations.

C. Accuracy. Tenant represents that all information provided to Landlord concerning payment method and mailing address is accurate and up to date.

V. COVENANTS & RESTRICTIONS

A. Tenant Covenants
1. Timely Payment. Tenant shall pay Rent on or before the Due Date and shall pay any Late Fee assessed pursuant to this Addendum.
2. Notice of Payment Issues. Tenant shall promptly notify Landlord of any circumstance preventing timely payment.

B. Landlord Covenants
1. Enforcement. Landlord shall not impose Late Fees except as expressly provided herein and permitted by law.
2. Recordkeeping. Landlord shall maintain accurate records of all Late Fees assessed and paid.

VI. DEFAULT & REMEDIES

A. Events of Default
1. Failure to Pay Late Fee within ten (10) days after written demand.
2. Any other monetary or non-monetary default under the Lease.

B. Notice & Cure
Landlord shall provide written notice of default. Tenant shall have the shorter of (i) the cure period stated in the Lease, or (ii) ten (10) days, to cure monetary defaults under this Addendum.

C. Remedies
1. Graduated Remedies. Remedies include, without limitation, (a) collection actions; (b) recovery of court costs and attorney fees as permitted by N.C. Gen. Stat. § 42-46(h); and (c) summary ejectment (eviction).
2. Cumulative Rights. Remedies hereunder are cumulative of, and in addition to, remedies under the Lease and applicable law.

VII. RISK ALLOCATION

A. Indemnification
Indemnification is expressly not applicable to this Addendum.

B. Limitation of Liability
Any limitation of liability contained in the Lease applies equally to this Addendum, subject to statutory limits.

C. Force Majeure
Neither Party shall be liable for failure to perform monetary obligations if performance is rendered illegal or impossible by an act of God or governmental action; provided, however, that monetary obligations deferred under this clause shall become due immediately upon cessation of the force-majeure event.

VIII. DISPUTE RESOLUTION

A. Governing Law
This Addendum and any dispute arising hereunder shall be governed by the laws of the State of North Carolina without regard to conflict-of-laws principles.

B. Forum Selection
The Parties irrevocably submit to the exclusive jurisdiction of the state housing court (or the district court division having jurisdiction over landlord-tenant matters) located in the county where the Premises are situated.

C. Arbitration
Arbitration is expressly excluded.

D. Jury Waiver
Nothing herein shall constitute a waiver of any constitutional right to trial by jury.

E. Injunctive Relief
Landlord’s right to seek possession of the Premises via summary ejectment or other equitable relief is preserved.

IX. GENERAL PROVISIONS

A. Amendment & Waiver
No modification of this Addendum shall be valid unless in writing and signed by both Parties. Waiver of any breach shall not be deemed waiver of any subsequent breach.

B. Assignment
Assignment and delegation are governed by the Lease.

C. Successors & Assigns
This Addendum is binding upon and inures to the benefit of the Parties and their respective heirs, successors, and permitted assigns.

D. Severability
If any provision of this Addendum is held unenforceable, the remaining provisions shall remain in full force and effect, and the unenforceable provision shall be reformed to the minimum extent necessary to achieve its original intent.

E. Integration
This Addendum, together with the Lease and any other written addenda, constitutes the entire agreement of the Parties with respect to late fees, superseding all prior or contemporaneous oral or written agreements.

F. Counterparts & Electronic Signatures
This Addendum may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Electronic signatures and PDF copies shall be deemed originals for all purposes.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Late Fee Addendum as of the Effective Date.

[OPTIONAL NOTARY ACKNOWLEDGMENT PER N.C. LAW]

[// GUIDANCE:
1. Confirm the current dollar thresholds and statutory citations at the time of execution.
2. Attach this Addendum to the Lease and reference it in the integration clause of the Lease to avoid conflicts.
3. Deliver a fully executed copy to all Parties and retain proof of delivery.
4. For multi-unit properties, consider a standardized Late Fee Addendum to ensure uniform enforcement.
]