NORTH CAROLINA RESIDENTIAL LEASE AGREEMENT

(Comprehensive Professional Form — Court-Ready)

[// GUIDANCE: This template is drafted for use with residential properties located in North Carolina and is designed to comply with Chapter 42 of the North Carolina General Statutes (“NC RRAA”), the federal Fair Housing Act, and other applicable law as of the date of drafting. Practitioners should confirm no subsequent statutory or regulatory changes have occurred prior to use.]

TABLE OF CONTENTS

1. Definitions
2. Lease of Premises; Term
3. Rent; Additional Charges
4. Security Deposit
5. Possession; Delivery; Condition
6. Representations & Warranties
7. Tenant Covenants
8. Landlord Covenants
9. Maintenance, Repairs & Habitability
10. Alterations & Improvements
11. Insurance & Risk Allocation
12. Indemnification; Liability Cap
13. Default
14. Remedies
15. Casualty; Condemnation; Force Majeure
16. Assignment & Subletting
17. Compliance With Laws; Rules & Regulations
18. Notices
19. Dispute Resolution; Governing Law
20. General Provisions
21. Signatures; Acknowledgments

1. DEFINITIONS

For ease of reference, capitalized terms used in this Lease have the meanings set forth below and may be used in the singular or plural form as the context requires.

“Additional Rent” – Any monetary obligation other than Base Rent required to be paid by Tenant under this Lease.

“Base Rent” – The recurring monthly rent in the amount of $[BASE RENT] due on or before the [DUE DAY] day of each calendar month during the Term.

“Commencement Date” – [DATE], subject to Section 2.4.

“Landlord” – [LANDLORD LEGAL NAME], its successors and permitted assigns.

“Lease” – This North Carolina Residential Lease Agreement, including all exhibits, addenda, and written amendments.

“Lease Term” or “Term” – The period beginning on the Commencement Date and expiring on [EXPIRATION DATE], unless earlier terminated in accordance with this Lease.

“Premises” – The residential dwelling unit located at [STREET ADDRESS, CITY, COUNTY, NC ZIP], together with all appurtenant rights.

“Security Deposit” – The deposit described in Section 4.

“Tenant” – [TENANT LEGAL NAME(S)], and each occupant signing this Lease, jointly and severally.

2. LEASE OF PREMISES; TERM

2.1 Grant of Lease. Landlord hereby leases the Premises to Tenant, and Tenant accepts the same, for the Term and on the covenants and conditions set forth herein.

2.2 Type of Tenancy. ☐ Fixed-Term ☐ Month-to-Month ☐ Week-to-Week. [SELECT ONE]

2.3 Automatic Renewal. Unless either party delivers written notice of non-renewal at least [30] days prior to the expiration of the Term (or such shorter period as permitted under N.C. Gen. Stat. § 42-14), this Lease shall convert to a month-to-month tenancy on the same terms, except that Base Rent may be adjusted upon written notice as provided by law.

2.4 Delay in Possession. If Landlord cannot deliver possession of the Premises on the Commencement Date for reasons beyond Landlord’s control, the Commencement Date shall be deferred to the date possession is tendered; Base Rent will be abated on a pro rata basis. Tenant’s sole remedy for delay is rent abatement; Tenant waives any claim for damages.

3. RENT; ADDITIONAL CHARGES

3.1 Base Rent. Tenant shall pay Base Rent, in lawful money of the United States, in advance and without set-off, deduction, or demand, to Landlord at [PAYMENT ADDRESS] (or such other place designated in writing).

3.2 Late Fees. If any installment of Base Rent is not received within [X] calendar days after its due date, Tenant shall pay a late fee equal to the greater of: (a) $15.00, or (b) 5% of the monthly Base Rent, in strict conformity with N.C. Gen. Stat. § 42-46(a)(1).

3.3 Returned Check Fee. Tenant shall pay $25.00 for any dishonored payment instrument, plus bank charges, per § 42-46(a)(3).

3.4 Additional Rent. Any sum due from Tenant under this Lease (other than Base Rent) shall constitute Additional Rent and, if unpaid, may be collected as rent.

4. SECURITY DEPOSIT

4.1 Amount; Statutory Cap. Upon execution of this Lease, Tenant shall deposit with Landlord the Security Deposit in the amount of $[AMOUNT ≤ statutory maximum], not to exceed: (a) two (2) months’ rent for tenancies longer than two months; (b) one and one-half (1.5) months’ rent for month-to-month tenancies; or (c) two (2) weeks’ rent for week-to-week tenancies, pursuant to N.C. Gen. Stat. § 42-51.

4.2 Trust Account / Bond. Landlord shall either: (i) place the Security Deposit in a trust account with a licensed North Carolina financial institution; or (ii) furnish a bond from an insurance company licensed to operate in North Carolina, all as permitted by N.C. Gen. Stat. § 42-50. Landlord shall notify Tenant in writing of the institution/bond within 30 days of receipt.

4.3 Permissible Uses. Security Deposit may be applied solely to items authorized under § 42-51, including unpaid rent, damages beyond normal wear, court costs, late fees, and costs of re-renting.

4.4 Return. Within 30 days after Tenant vacates, Landlord shall deliver an itemized accounting and refund any remaining balance. If final damage amounts are undetermined, Landlord may send an interim statement within 30 days and a final accounting within 60 days, all pursuant to § 42-52.

4.5 Non-Waiver. Nothing herein shall be construed to diminish Tenant’s statutory rights or Landlord’s statutory remedies regarding security deposits.

[// GUIDANCE: North Carolina law is unforgiving regarding mishandling of security deposits. Maintain strict segregation of funds and timely accounting to avoid treble-damage exposure under unfair trade practices.]

5. POSSESSION; DELIVERY; CONDITION

5.1 Delivery. Landlord shall deliver the Premises clean, safe, and fit for human habitation in compliance with N.C. Gen. Stat. § 42-42(a).

5.2 Inspection Checklist. Within [5] days after occupancy, Tenant shall complete and return to Landlord a move-in inspection checklist noting any defects. Failure to timely deliver the checklist constitutes acknowledgment that the Premises are in good condition except as noted by Landlord.

5.3 Keys and Access Devices. Landlord shall provide [NUMBER] sets of keys and any access codes. Tenant shall not duplicate keys without prior written consent.

6. REPRESENTATIONS & WARRANTIES

6.1 Mutual Authority. Each party represents that it has full authority and capacity to enter into and perform this Lease.

6.2 Landlord Warranty of Habitability. Landlord warrants that, on the Commencement Date and throughout the Term, the Premises shall comply with applicable building and housing codes materially affecting health and safety, and that all essential services (heat, water, electricity) shall be maintained, consistent with § 42-42(a).

6.3 Tenant Reliance. Tenant acknowledges that, except as expressly set forth herein, no representations have been made regarding the Premises.

7. TENANT COVENANTS

Tenant shall:
a. Pay all Rent and charges punctually;
b. Keep the Premises clean and safe (§ 42-43(1));
c. Dispose of all waste in a clean and safe manner;
d. Keep plumbing fixtures clean and in sanitary condition;
e. Not deliberately or negligently destroy, deface, damage, or remove any part of the Premises (§ 42-43(2));
f. Conduct all persons on the Premises so as not to disturb neighbors’ peaceful enjoyment;
g. Comply with all federal, state, and local laws, including occupancy limits and crime-free housing ordinances;
h. Obtain Landlord’s prior written consent before keeping any pet other than [SERVICE/ASSISTANCE ANIMAL EXCEPTION], and pay any lawful, separate pet deposit;
i. Not smoke ☐ anywhere on the Premises ☐ except in designated areas;
j. Not use the Premises for any unlawful purpose, nor for any business without Landlord’s consent.

8. LANDLORD COVENANTS

Landlord shall:
a. Provide and maintain in good and safe working order electrical, plumbing, sanitary, heating, ventilating, and other facilities supplied by Landlord (§ 42-42(a)(4));
b. Make all repairs reasonably necessary to keep the Premises fit and habitable;
c. Provide smoke alarms and, when required, carbon-monoxide alarms, in working order at the start of tenancy and replace/repair within 15 days of notice;
d. Maintain common areas in a safe condition;
e. Refrain from interrupting essential services except for bona fide emergencies or repairs with reasonable notice.

9. MAINTENANCE, REPAIRS & HABITABILITY

9.1 Notice of Defects. Tenant shall promptly notify Landlord in writing of any condition requiring repair.

9.2 Access for Repairs. Upon at least 24-hour notice (or shorter for emergencies), Landlord may enter the Premises between 8 a.m. and 8 p.m. to inspect, make repairs, provide services, or show the Premises to prospective purchasers or tenants.

9.3 Tenant Repairs. Tenant shall not make repairs or deduct costs from Rent without Landlord’s prior written consent, except as expressly permitted by law.

9.4 Habitability Remedy. If Landlord fails to correct any material habitability condition within a reasonable time after written notice, Tenant’s remedies shall be limited to those provided under N.C. Gen. Stat. § 42-42 and § 42-44 (rent abatement and, in certain cases, contract termination).

10. ALTERATIONS & IMPROVEMENTS

Tenant shall not make any structural alteration, install fixtures, or paint without Landlord’s prior written consent. Alterations become the property of Landlord upon installation unless otherwise agreed in writing. Landlord may require Tenant to remove unauthorized alterations and restore the Premises at Tenant’s expense.

11. INSURANCE & RISK ALLOCATION

11.1 Tenant Insurance. Tenant shall obtain and maintain throughout the Term a renter’s liability insurance policy with minimum limits of $[AMOUNT] per occurrence, naming Landlord as an additional insured/loss payee for property damage.

11.2 Landlord Insurance. Landlord shall maintain property insurance on the dwelling structure; however, such insurance does not cover Tenant’s personal property.

11.3 Waiver of Subrogation. Each party waives and releases the other (and its insurers) from liability for any loss covered by insurance, to the extent permitted by the policy and applicable law.

12. INDEMNIFICATION; LIABILITY CAP

12.1 Tenant Indemnity. Except to the extent arising from Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, defend, and hold Landlord harmless from any claim, liability, or expense (including reasonable attorneys’ fees) arising out of: (a) Tenant’s use or occupancy of the Premises; (b) breach of this Lease; or (c) the acts or omissions of Tenant, occupants, guests, or invitees.

12.2 Liability Cap. Tenant’s aggregate liability for physical damage to the Premises (exclusive of unpaid Rent and statutory treble damages for willful destruction) shall be limited to the amount of the Security Deposit, provided that such limitation shall not apply to (i) personal injury, (ii) gross negligence or willful misconduct, or (iii) indemnification obligations.

13. DEFAULT

The occurrence of any of the following constitutes an “Event of Default”:
a. Failure to pay any Rent within 10 days after written demand (§ 42-3);
b. Material breach of any non-monetary covenant not cured within [10] days after written notice (or sooner if emergency);
c. Abandonment of the Premises;
d. Tenant’s bankruptcy or insolvency;
e. Use of the Premises for illegal purposes;
f. Repeated late payment of Rent (three or more times within a 12-month period).

14. REMEDIES

14.1 Summary Ejectment. Upon any uncured Event of Default, Landlord may terminate this Lease and seek summary ejectment pursuant to N.C. Gen. Stat. § 42-26 et seq.

14.2 Monetary Recovery. Landlord may recover all Rent due, damages, court costs, allowable attorneys’ fees (§ 42-46(h)), and other sums permitted by law.

14.3 Right to Cure. Landlord may, but is not obligated to, cure Tenant’s default and charge Tenant as Additional Rent.

14.4 Cumulative Remedies. All rights and remedies are cumulative and non-exclusive, except as expressly limited by statute.

15. CASUALTY; CONDEMNATION; FORCE MAJEURE

15.1 Casualty. If the Premises are substantially damaged by fire or other casualty not caused by Tenant, either party may terminate this Lease by written notice within 10 days after the casualty. Rent shall abate from the date of casualty.

15.2 Condemnation. If all or a material portion of the Premises is taken by eminent domain, this Lease shall terminate as of the date of possession by the condemning authority; Rent shall be apportioned accordingly. Tenant shall have no claim to the condemnation award.

15.3 Force Majeure. Neither party shall be liable for failure to perform (other than Rent payment) due to events beyond its reasonable control, including but not limited to acts of God, war, pandemics, or governmental orders.

16. ASSIGNMENT & SUBLETTING

Tenant shall not assign this Lease or sublet any portion of the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole discretion. Any unauthorized transfer is void and constitutes an Event of Default.

17. COMPLIANCE WITH LAWS; RULES & REGULATIONS

Tenant shall comply with (i) all applicable laws and ordinances, (ii) community association covenants, and (iii) Landlord’s reasonable rules, a copy of which is attached hereto as Exhibit A and incorporated herein.

18. NOTICES

All notices required under this Lease must be in writing and delivered: (a) by hand, (b) by certified U.S. Mail (return receipt requested), or (c) by reputable overnight courier, to the address for each party stated below (or such other address as a party may later designate in writing). Notice is deemed given upon delivery or first refusal.

Landlord Address: [ADDRESS]
Tenant Address (Premises): [ADDRESS]

19. DISPUTE RESOLUTION; GOVERNING LAW

19.1 Governing Law. This Lease is governed by the laws of the State of North Carolina, without regard to conflict-of-laws principles.

19.2 Forum Selection. Each party irrevocably submits to the exclusive jurisdiction of the state housing court or other court of competent jurisdiction located in [COUNTY, NC] for any action arising out of this Lease, subject to statutory venue provisions.

19.3 Arbitration. By mutual intent of the parties, arbitration is expressly excluded.

19.4 Jury Trial. To the extent permitted by Article I, § 25 of the North Carolina Constitution, the parties [may insert: “knowingly and voluntarily waive any right to a trial by jury.”] [// GUIDANCE: North Carolina courts scrutinize jury waivers; consider retaining the clause only for sophisticated parties and initial each waiver.]

19.5 Injunctive Relief. Nothing herein limits Landlord’s right to seek injunctive or equitable relief (including eviction orders) to protect possession of the Premises.

20. GENERAL PROVISIONS

20.1 Entire Agreement. This Lease constitutes the entire agreement and supersedes all prior negotiations and understandings.

20.2 Amendment; Waiver. Any amendment must be in a writing signed by both parties. No waiver is effective unless in writing and shall not be deemed a waiver of any subsequent breach.

20.3 Severability. If any provision is held invalid or unenforceable, the remainder of this Lease shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it valid.

20.4 Successors & Assigns. Subject to Section 16, this Lease binds and benefits the parties and their respective heirs, successors, and assigns.

20.5 Counterparts; Electronic Signatures. This Lease 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 are binding to the fullest extent permitted by law.

20.6 Time of Essence. Time is of the essence with respect to every obligation under this Lease.

20.7 Interpretation. Headings are for convenience only and shall not affect interpretation. The singular includes the plural, and vice-versa.

20.8 Attorneys’ Fees. If either party brings an action to enforce this Lease, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs to the extent permitted by N.C. Gen. Stat. § 42-46(h).

21. SIGNATURES; ACKNOWLEDGMENTS

IN WITNESS WHEREOF, the parties have executed this Lease as of the Effective Date written below.

LANDLORD:

[LANDLORD LEGAL NAME]
By: _______
Title: ______
Date: _________

TENANT(S):

1. ---

   [TENANT NAME]
   Date: _____

2. ---

   [TENANT NAME]
   Date: _____

(Add signature blocks for additional tenants as needed.)

NOTARY ACKNOWLEDGMENT (LANDLORD)

State of North Carolina
County of _______

I, ____, a Notary Public in and for said County and State, do hereby certify that ____, personally appeared before me this day and acknowledged the execution of the foregoing instrument.

Witness my hand and official seal, this ___ day of __, 20.

Notary Public
My commission expires: _______

NOTARY ACKNOWLEDGMENT (TENANT)

[Duplicate acknowledgment block for each tenant if notarization is desired.]

[// GUIDANCE: Attach the following customary exhibits as applicable:
• Exhibit A – House Rules & Regulations
• Exhibit B – Move-In Inspection Checklist
• Exhibit C – Lead-Based Paint Disclosure (for pre-1978 property)
• Exhibit D – Pet Addendum
• Exhibit E – Guaranty (if required) ]