Residential Lease Addendum – Late Fee

(State of North Dakota)

[// GUIDANCE: This Addendum is intended to be attached to and made part of an existing North Dakota residential lease (“Base Lease”). Review the Base Lease to ensure that (i) this Addendum is properly incorporated by reference; (ii) there is no conflict between provisions; and (iii) the notice information for both parties matches the Base Lease.]

I. DOCUMENT HEADER

Effective Date: [DATE]

Landlord: [LANDLORD LEGAL NAME], a [ENTITY TYPE]
Address for Notice: [LANDLORD ADDRESS]

Tenant(s): [TENANT LEGAL NAME(S)]
Address of Leased Premises: [UNIT ADDRESS]

Recitals
A. Landlord and Tenant are parties to that certain Residential Lease dated [LEASE DATE] (the “Base Lease”) for the Premises described above.
B. The parties desire to supplement the Base Lease to establish clear terms governing late payment of Rent, consistent with North Dakota law and statutory limitations on late charges.
C. In consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt and adequacy of which are acknowledged, the parties agree as follows.

II. DEFINITIONS

For purposes of this Addendum, capitalized terms have the meanings set forth below and, if not defined herein, the meanings given in the Base Lease.

1. “Base Lease” – The lease agreement identified in Recital A, together with all prior amendments and addenda.
2. “Due Date” – The date on which monthly Rent is contractually due under the Base Lease, currently the [DAY] day of each calendar month.
3. “Grace Period” – The period beginning on the Due Date and expiring at 11:59 p.m. local time on the [NUMBER]ᵗʰ day following the Due Date, during which Rent may be paid without incurring a Late Charge.
4. “Late Charge” – The monetary charge assessed under Section III.3 for Rent not received by the end of the Grace Period, subject to the limitations of this Addendum and applicable law.
5. “Rent” – All sums designated as “rent” (or additional rent) under the Base Lease, including recurring monthly rent and any other periodic charges.

III. OPERATIVE PROVISIONS

1. Incorporation. This Addendum is hereby made part of, and fully incorporated into, the Base Lease. If any conflict exists between the Base Lease and this Addendum, the terms of this Addendum control with respect to late payment of Rent.

2. Payment Standards.
   2.1 Due Date. Tenant shall pay Rent in full on or before the Due Date, without set-off or deduction, at the location and by the method specified in the Base Lease.
   2.2 Grace Period. Landlord will not assess any Late Charge for Rent received in good funds before expiration of the Grace Period. [// GUIDANCE: North Dakota does not impose a statutory grace period. Inserting a reasonable grace period (commonly 3–5 days) helps defeat unconscionability challenges.]

3. Late Charge.
   3.1 Amount. If any Rent remains unpaid after the Grace Period, Tenant shall immediately owe Landlord a Late Charge equal to the lesser of:
   (a) [__]% of the unpaid Rent amount, or
   (b) $[FLAT AMOUNT] per month that such Rent (or portion thereof) remains unpaid,
   capped in all events at any stricter limitation imposed by applicable North Dakota law (collectively, the “Statutory Limit”).
   3.2 Reasonableness Standard. The parties acknowledge that the Late Charge constitutes a fair and reasonable estimate of Landlord’s administrative costs and is not a penalty.
   3.3 Non-Waiver. Acceptance of Rent or any Late Charge after it becomes due does not waive any Event of Default or Landlord’s right to pursue additional remedies.

4. Notice of Late Payment.
   4.1 Initial Notice. Landlord shall deliver a written notice of late payment (“Late Notice”) to Tenant no later than [__] days after Rent first becomes subject to a Late Charge. The Late Notice shall state (i) the amount of unpaid Rent, (ii) the calculated Late Charge, and (iii) the final date to cure before further remedies are pursued.
   4.2 Method of Delivery. Late Notices must be delivered in the manner prescribed for “Notices” in the Base Lease, and are deemed given upon the earliest legally effective delivery method.

5. Allocation of Payments. Payments received from Tenant shall be applied in the following order: (a) outstanding Late Charges; (b) unpaid Rent; (c) all other amounts then due and owing under the Base Lease.

6. Compliance With Law. Landlord shall not assess, and Tenant shall not be obligated to pay, any Late Charge that exceeds the Statutory Limit or is otherwise prohibited by law. If a court of competent jurisdiction determines any Late Charge collected hereunder to be excessive or unlawful, the excess portion shall be credited against the next Rent due or promptly refunded to Tenant, at Landlord’s election.

7. No Modification Except in Writing. Any change to the Late Charge, Grace Period, or Due Date must be made by a mutually executed written amendment that expressly references this Addendum.

IV. REPRESENTATIONS & WARRANTIES

1. Landlord represents that the Late Charge structure herein:
   (a) complies with all current North Dakota landlord-tenant statutes and regulations; and
   (b) does not violate any local rent control or consumer protection ordinance applicable to the Premises.

2. Tenant represents that Tenant has the financial capacity to pay Rent when due and understands the implications of the Late Charge provisions.

3. Survival. The representations and warranties in this Addendum survive its execution and any termination of the Base Lease with respect to obligations accruing prior to termination.

V. COVENANTS & RESTRICTIONS

1. Tenant agrees to timely pay all Rent and Late Charges in the manner specified herein.
2. Landlord agrees to maintain accurate records of Rent receipts and Late Charges and to provide Tenant with an accounting upon written request no more than twice per calendar year.

VI. DEFAULT & REMEDIES

1. Event of Default. Failure to pay (i) Rent within the Grace Period or (ii) any Late Charge within [__] days after written demand constitutes a material default (“Event of Default”).
2. Cure Period. Tenant may cure an Event of Default by paying all outstanding sums within [__] days after receipt of Landlord’s written default notice.
3. Remedies. Upon an uncured Event of Default, Landlord may exercise any right or remedy available under the Base Lease or applicable law, including but not limited to summary eviction proceedings, recovery of unpaid sums, and reasonable attorney fees and court costs as allowed by law.

VII. RISK ALLOCATION

Indemnification is expressly not applicable under this Addendum. All liability caps, if any, are governed by statutory limits and the Base Lease.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum and any dispute arising hereunder are governed by the landlord-tenant laws of the State of North Dakota without regard to conflict-of-laws principles.
2. Forum Selection. The parties consent to exclusive jurisdiction and venue in the state housing court (or its successor) having jurisdiction over the Premises.
3. Arbitration Excluded. Disputes shall not be subject to arbitration unless the parties later agree in a separate, written agreement executed after the dispute arises.
4. Jury Waiver. Nothing herein shall be construed to waive any constitutional right to trial by jury. Any jury waiver must be separately stated, conspicuous, and voluntary.
5. Injunctive Relief. Landlord’s right to seek injunctive relief, including eviction or possessory remedies, is expressly preserved.

IX. GENERAL PROVISIONS

1. Entire Agreement. This Addendum, together with the Base Lease, constitutes the entire agreement of the parties regarding late payment of Rent and supersedes all prior oral or written agreements on that subject.
2. Amendment; Waiver. No amendment or waiver is effective unless in writing and signed by both parties. A waiver on one occasion is not a waiver of future defaults.
3. Assignment. Tenant may not assign this Addendum apart from a permitted assignment of the Base Lease.
4. Severability. If any provision is found unenforceable, the remaining provisions remain in full force, and the invalid provision shall be modified to the minimum extent necessary to be enforceable.
5. Counterparts; Electronic Signatures. This Addendum may be executed in counterparts and delivered electronically, each of which is deemed an original and together constitute one instrument.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Residential Lease Addendum – Late Fee as of the Effective Date.

[// GUIDANCE: Notarization is not generally required for a residential lease addendum in North Dakota, but may be added if the Base Lease was notarized or local practice dictates. If notarization is desired, insert appropriate jurats below.]

End of Document