MOLD DISCLOSURE, PREVENTION, AND REMEDIATION ADDENDUM

(North Dakota Residential Lease)

[// GUIDANCE:
1. This Addendum is intended for attachment to a master Residential Lease Agreement (the “Lease”) covering dwelling units located in the State of North Dakota (“ND”).
2. Bracketed text MUST be customized prior to execution.
3. Cross-reference the section numbering of the Lease where indicated.
]

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

MOLD DISCLOSURE, PREVENTION, AND REMEDIATION ADDENDUM (“Addendum”) made as of [EFFECTIVE DATE] (“Effective Date”) by and between [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE] (“Landlord”), and [TENANT LEGAL NAME(S)] (“Tenant,” whether one or more), collectively the “Parties,” with respect to the residential premises located at [STREET ADDRESS, CITY, ND ZIP] (the “Premises”).

This Addendum is incorporated by reference into, and made a material part of, the Lease dated [LEASE DATE]. In the event of any conflict between this Addendum and the Lease, this Addendum shall control solely as to mold-related matters.

II. DEFINITIONS

For purposes of this Addendum, capitalized terms have the meanings set forth below. Undefined capitalized terms have the meanings ascribed in the Lease.

1. “Actual Damages” means direct, out-of-pocket losses proven with reasonable certainty and does not include special, consequential, punitive, or exemplary damages.
2. “Mold” means any microscopic fungi, mycotoxins, or spores capable of growing indoors and causing adverse health effects or structural damage.
3. “Prompt Notice” means written notice delivered in compliance with § [NOTICE SECTION] of the Lease within forty-eight (48) hours after the earlier of (a) discovery of Visible Mold, or (b) when such discovery should reasonably have occurred.
4. “Remediation” means actions consistent with the U.S. Environmental Protection Agency’s “Mold Remediation in Schools and Commercial Buildings” guidelines (EPA 402-K-01-001) or any successor standard adopted by the North Dakota Department of Health (“NDDOH”) to (a) eliminate active Mold growth, and (b) return affected building materials to a dry condition.
5. “Visible Mold” means Mold growth readily observable by the unaided eye or discernible through persistent musty odor.

III. OPERATIVE PROVISIONS

3.1 Disclosure of Known Conditions

Landlord hereby discloses that, as of the Effective Date and [based on a visual inspection performed on or about ___, 20__], Landlord [HAS / HAS NOT] identified Visible Mold within the Premises. If “HAS,” attach a “Mold Condition Schedule” describing location(s), extent, and planned Remediation timeline.

3.2 Condition Precedent

Tenant’s occupancy is conditioned on Tenant’s acknowledgment of receipt of (a) this Addendum, and (b) the EPA pamphlet “A Brief Guide to Mold, Moisture, and Your Home,” as required by NDDOH guidelines. Tenant’s signature below constitutes such acknowledgment.

3.3 Habitability Standard

Landlord shall maintain the Premises in a fit and habitable condition and comply with N.D. Cent. Code § 47-16-13.1 (Landlord’s Duties), including the duty to “make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition.” This obligation specifically extends to conditions involving Mold caused by structural defects, plumbing leaks, or building envelope failures.

IV. REPRESENTATIONS & WARRANTIES

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

4.2 Landlord’s Limited Warranty. Landlord warrants that, to Landlord’s actual knowledge and except as disclosed in Section 3.1, no Visible Mold exists in the Premises as of the Effective Date. This warranty (a) survives for thirty (30) days after Tenant’s initial possession, and (b) is conditioned on Tenant’s compliance with Section 5.1.

V. COVENANTS & RESTRICTIONS

5.1 Tenant Prevention Obligations

Tenant shall:
a. Keep the Premises clean and regularly remove visible moisture.
b. Use exhaust fans in kitchens, bathrooms, and laundry areas.
c. promptly report to Landlord any plumbing leak, roof leak, condensation, HVAC malfunction, or other moisture-related condition.
d. Maintain interior temperature between 60-80°F and relative humidity below 60% where reasonably achievable.

5.2 Landlord Inspection & Maintenance Obligations

Landlord shall (a) perform semi-annual inspections of the Premises’ plumbing, HVAC condensate lines, and building envelope; and (b) maintain records of inspections and any Remediation performed for a minimum of three (3) years.

5.3 Alterations Restriction

Tenant shall not install unvented combustion appliances, humidifiers, or aquariums exceeding [X] gallons without Landlord’s prior written consent.

VI. DEFAULT & REMEDIES

6.1 Tenant Default

Failure to provide Prompt Notice or to comply with Section 5.1 constitutes a material default. Upon such default, Landlord may (a) perform necessary cleaning or Remediation at Tenant’s expense, payable as additional rent, and (b) pursue remedies under the Lease subject to cure periods in § [LEASE DEFAULT SECTION].

6.2 Landlord Default

If Landlord fails to commence Remediation within five (5) business days after receipt of Prompt Notice, Tenant may (a) pursue injunctive relief to enforce habitability obligations, and (b) if the condition materially affects health or safety and remains unremedied for more than fourteen (14) days, terminate the Lease as permitted by N.D. Cent. Code § 47-16-13.2.

6.3 Attorneys’ Fees

The prevailing Party in any action to enforce this Addendum is entitled to reasonable attorneys’ fees and costs.

VII. RISK ALLOCATION

7.1 Indemnification

a. Tenant shall indemnify, defend, and hold Landlord harmless from and against all claims, losses, and Actual Damages arising out of Tenant’s breach of Section 5.1 or negligent acts that cause or worsen Mold.
b. Landlord shall indemnify, defend, and hold Tenant harmless from and against all claims, losses, and Actual Damages arising out of Landlord’s failure to comply with Sections 3.3 or 5.2, or Landlord’s negligence in performing Remediation.

7.2 Limitation of Liability

Except for (i) willful misconduct, (ii) fraud, or (iii) obligations expressly preserved in Section 7.1, each Party’s aggregate liability under this Addendum shall not exceed Actual Damages.

7.3 Insurance

Landlord and Tenant shall carry and maintain the insurance coverages required under § [INSURANCE SECTION] of the Lease. The Parties acknowledge that typical renters’ insurance excludes Mold-related losses; Tenant is advised to obtain specialized coverage if desired.

7.4 Force Majeure

Neither Party is liable for delay or failure in performance to the extent caused by an event beyond its reasonable control (e.g., floods, governmental restrictions) excluding the Party’s own failure to maintain or repair the Premises.

VIII. DISPUTE RESOLUTION

a. Governing Law. This Addendum and any dispute arising hereunder shall be governed by the laws of the State of North Dakota, without regard to conflict-of-laws principles.
b. Forum Selection. Exclusive venue shall lie in the District Court of the State of North Dakota, [COUNTY] County, Housing Court Division (or its successor).
c. Arbitration Excluded. The Parties expressly opt-out of arbitration for any dispute relating to this Addendum.
d. Jury Trial. Each Party retains its constitutional right to a jury trial; any purported waiver in the Lease shall not apply to Mold-related claims.
e. Injunctive Relief. Nothing herein restricts either Party from seeking temporary restraining orders or preliminary/permanent injunctive relief, particularly to enforce habitability obligations.

IX. GENERAL PROVISIONS

9.1 Amendment; Waiver. No amendment or waiver of any provision of this Addendum is binding unless in writing and signed by both Parties. No waiver is deemed a waiver of any subsequent breach.

9.2 Assignment. Tenant may not assign rights or delegate duties under this Addendum without Landlord’s prior written consent, except as permitted by law for service members.

9.3 Severability. If any provision of this Addendum is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it enforceable.

9.4 Integration. This Addendum, together with the Lease and any schedules or exhibits referenced herein, constitutes the entire agreement of the Parties regarding Mold and supersedes all prior or contemporaneous oral or written agreements on the subject.

9.5 Counterparts; Electronic Signatures. This Addendum may be executed in counterparts, each of which is deemed an original, and all of which constitute one instrument. Signatures transmitted electronically or by facsimile are binding and effective.

X. EXECUTION BLOCK

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

[OPTIONAL NOTARY ACKNOWLEDGMENT – Complete if required under N.D. Cent. Code § 47-19-03 for recordation or lender compliance.]

[// GUIDANCE:
• Attach “Mold Condition Schedule” if Section 3.1 requires.
• Update cross-references to Lease sections before finalizing.
• Consider independent environmental consultant verification for multifamily properties to enhance defensibility.
]