LATE FEE ADDENDUM

to Residential Lease Agreement – State of Utah

[// GUIDANCE:
This template is designed to be attached to and fully incorporated into a Utah residential lease.
Verify local ordinances (e.g., Salt Lake City, Park City) for any additional late-fee, grace-period, or notice restrictions before finalizing.
]

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

1. Parties. This Late Fee Addendum (the “Addendum”) is entered into by and between [LANDLORD LEGAL NAME] (“Landlord”) and [TENANT LEGAL NAME] (“Tenant”).
2. Reference Lease. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [Original Lease Date] (the “Lease”) covering the real property commonly known as [Premises Address] (the “Premises”).
3. Consideration. In consideration of the mutual covenants herein and in the Lease, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.
4. Effective Date. This Addendum is effective as of [Effective Date] (the “Effective Date”) and shall be deemed incorporated into the Lease as of such date.
5. Governing Law. This Addendum shall be governed by and construed in accordance with the laws of the State of Utah, including but not limited to Title 78B, Chapter 6, Part 8 of the Utah Code Annotated, as amended.

II. DEFINITIONS

For purposes of this Addendum, capitalized terms not defined below have the meanings assigned in the Lease.

“Affected Rent” means any Rent (as defined in the Lease) that is unpaid after expiration of the Grace Period.

“Grace Period” means the number of calendar days after the Rent Due Date during which no Late Fee will accrue, as specified in Section III.A.

“Late Fee” means any fee, charge, or liquidated damages assessed pursuant to this Addendum on account of Tenant’s failure to timely pay Rent.

“Notice of Late Fee” means written notice delivered in accordance with Section V.B specifying the Late Fee, the amount of Affected Rent, and any cure rights.

III. OPERATIVE PROVISIONS

A. Grace Period
1. Landlord shall not assess a Late Fee until [GRACE PERIOD IN NUMBERS] calendar days (“Grace Period”) have elapsed after the Rent Due Date.
2. If the final day of the Grace Period falls on a legal holiday or a day on which financial institutions in Utah are closed, the Grace Period is extended to the next business day.

B. Late Fee Caps
1. The Late Fee for any single month shall not exceed the lesser of:
a. [$ FIXED DOLLAR AMOUNT]; or
b. [PERCENTAGE]% of the outstanding Affected Rent.
2. The aggregate Late Fees assessed during the Lease Term shall not exceed any statutory ceiling that may be imposed under applicable Utah law.

C. Accrual & Calculation
1. Late Fees begin to accrue at 12:01 a.m. on the calendar day immediately following expiration of the Grace Period.
2. Late Fees shall accrue on a [DAILY / PER-OCURRENCE] basis until all Affected Rent is paid in full.

D. Characterization as Additional Rent
1. All Late Fees constitute “Rent” for purposes of the Lease.
2. Non-payment of Late Fees is a monetary default under the Lease to the same extent as non-payment of base Rent.

E. Application of Payments
Unless prohibited by law, Landlord may apply payments received from Tenant first to unpaid Late Fees, then to oldest outstanding Rent, and thereafter to current Rent.

F. Non-Waiver
Landlord’s acceptance of partial payments during the Grace Period or after assessment of any Late Fee does not constitute a waiver of Landlord’s rights under this Addendum or the Lease.

IV. REPRESENTATIONS & WARRANTIES

A. Mutual Authority. Each party represents it has full right, power, and authority to enter into and perform this Addendum and that the execution hereof does not violate any agreement binding on such party.

B. Compliance. Landlord represents that the Late Fee structure herein complies with then-current Utah statutes, regulations, and any applicable local ordinances. Tenant represents that Tenant has reviewed and understands the Late Fee provisions and acknowledges their reasonableness.

[// GUIDANCE: Landlord should document a reasonable estimate of administrative costs to defend “liquidated damages” characterization if challenged.]

V. COVENANTS & RESTRICTIONS

A. Tenant Covenant to Pay. Tenant shall pay all Late Fees assessed under this Addendum without set-off or deduction, contemporaneously with payment of the Affected Rent or upon demand, whichever is earlier.

B. Notice Obligations
1. Landlord shall provide Tenant with a Notice of Late Fee at least [MINIMUM STATUTORY OR CONTRACTUAL DAYS] days before filing any forcible detainer action based on non-payment.
2. Delivery of the Notice of Late Fee shall satisfy, and may be combined with, any 3-day notice to pay or vacate required under Utah Code Ann. § 78B-6-802, provided the statutory content requirements are met.

C. Record Retention. Landlord shall retain proof of delivery of all Notices of Late Fee for at least the greater of (i) four (4) years or (ii) the statutory limitation period applicable to contract claims in Utah.

VI. DEFAULT & REMEDIES

A. Events of Default. Failure to pay any Late Fee within the cure period set forth in the Notice of Late Fee constitutes an independent “Event of Default” under the Lease.

B. Cure Period. Tenant shall have [CURE PERIOD] calendar days after receipt of a Notice of Late Fee to cure such default by paying all outstanding Late Fees and Affected Rent.

C. Graduated Remedies
1. If default remains uncured after the Cure Period, Landlord may:
a. Accelerate all Rent otherwise due under the Lease;
b. Initiate forcible detainer proceedings under Utah Code Ann. § 78B-6-801 et seq.;
c. Recover reasonable attorneys’ fees and court costs; and
d. Pursue any other remedy available at law or in equity, including injunctive relief for possession.

D. Mitigation of Damages. Landlord shall take commercially reasonable steps to mitigate damages following Tenant’s default, as required by Utah law.

VII. RISK ALLOCATION

A. Indemnification. Not applicable; no indemnity obligations are created or expanded by this Addendum.

B. Limitation of Liability. Liability is limited only to the extent permitted by Utah statute; no additional contractual caps are imposed herein.

C. Force Majeure. Neither party shall be liable for failure to perform monetary or non-monetary obligations under this Addendum to the extent such failure is caused by an event of Force Majeure (as defined in the Lease), provided, however, this does not excuse Tenant’s obligation to pay Rent or Late Fees unless expressly required by statute.

VIII. DISPUTE RESOLUTION

A. Governing Law. Utah law governs.

B. Forum Selection. Any action arising out of this Addendum shall be brought exclusively in the state housing court (or, if no housing court is established, the district court) having jurisdiction over the Premises.

C. Arbitration. The parties expressly opt out of, and exclude, mandatory arbitration.

D. Jury Waiver. No jury-trial waiver is provided; each party retains all constitutional jury-trial rights.

E. Injunctive Relief. Landlord’s right to obtain injunctive or equitable relief—including eviction and possession—is preserved and cumulative of any other remedy.

IX. GENERAL PROVISIONS

1. Amendment; Waiver. No amendment or waiver of any provision of this Addendum is effective unless in a writing signed by both parties. A waiver on one occasion is not a waiver on any subsequent occasion.
2. Assignment. Tenant may not assign this Addendum or the Lease without Landlord’s prior written consent, except as may be expressly allowed under the Lease.
3. Successors & Assigns. This Addendum binds and benefits the parties and their respective heirs, legal representatives, successors, and permitted assigns.
4. Severability. If any provision of this Addendum is held unenforceable, the remainder shall be enforced to the fullest extent permitted by law, and the unenforceable provision shall be reformed to achieve its intent to the maximum lawful extent.
5. Integration. This Addendum and the Lease constitute the entire agreement with respect to Late Fees and supersede all prior oral or written agreements on that subject.
6. 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. Signatures delivered by electronic means (e.g., DocuSign, PDF) are binding and effective.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the Effective Date.

[// GUIDANCE:
1. Notarization is generally not required for a Utah residential lease addendum, but notarize if local recording or court-form enforcement is anticipated.
2. If the Lease involves multiple tenants or co-signers, duplicate signature blocks as necessary.
]