Security Deposit Demand Letter — North Dakota

SECURITY DEPOSIT DEMAND LETTER

North Dakota — NDCC §§ 47-16-07.1 through 47-16-07.3

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

Date: [__/__/____]

TO:
[________________________________] (Landlord/Property Manager Name)
[________________________________] (Street Address)
[________________________________] (City, State ZIP)

RE: FORMAL DEMAND FOR RETURN OF SECURITY DEPOSIT
Tenant: [________________________________]
Rental Property: [________________________________]
Lease Term: [__/__/____] through [__/__/____]
Vacated Date: [__/__/____]
Deposit Amount: $[________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Tenant") concerning your failure to return the security deposit for the rental property identified above. Under the North Dakota Century Code, your obligations are clear and time-bound. This letter constitutes a formal demand for full return of the deposit and all statutory penalties to which our Client is entitled.

I. NORTH DAKOTA SECURITY DEPOSIT LAW — STATUTORY FRAMEWORK

A. Deposit Cap — NDCC § 47-16-07.1(1)

North Dakota law limits the security deposit a landlord may collect. Under NDCC § 47-16-07.1(1), a landlord may not demand or receive a security deposit exceeding one month's periodic rent. A separate pet deposit is permitted only if reasonably related to potential pet damage, but the total security deposit (excluding the pet deposit) may not exceed the one-month ceiling.

Important: North Dakota does not impose a statutory deposit cap for manufactured/mobile home lot rentals under NDCC § 47-10 but does limit those deposits to one month's rent under the general rule. There is no statewide cap for commercial leases.

B. Thirty-Day Return Deadline — NDCC § 47-16-07.1(2)

The landlord must return the security deposit — or deliver a written, itemized statement of deductions together with any remaining balance — within thirty (30) days after the later of:

1. Termination of the lease; or
2. Delivery of possession by the tenant (i.e., the date the tenant vacates and returns keys).

The itemized statement and any refund must be delivered or mailed to the tenant at the last known address furnished to the landlord. NDCC § 47-16-07.1(2).

C. No Interest or Separate Account Requirement

Unlike many states, North Dakota does not require landlords to:

• Hold security deposits in a separate or escrow account;
• Pay interest on security deposits; or
• Provide a receipt identifying the bank or account where the deposit is held.

This simplifies compliance but does not relax the return-deadline or itemization obligations.

D. Permissible Deductions — NDCC § 47-16-07.1(3)

A landlord may withhold from the security deposit only amounts necessary to cover:

☐ Unpaid rent or utility charges the tenant agreed to pay
☐ Damages to the premises beyond normal wear and tear
☐ Costs of cleaning to restore the premises to the condition at move-in, excluding normal wear and tear
☐ Other actual damages resulting from lease violations

E. Treble Damages and Attorney Fees — NDCC § 47-16-07.3

This is the critical enforcement provision. If a landlord retains a security deposit without reasonable justification, the tenant may recover:

• Treble damages (three times the amount wrongfully withheld); plus
• Reasonable attorney fees and court costs.

This penalty applies when the landlord's withholding lacks a good-faith basis — for example, deducting for normal wear and tear, failing to provide an itemized statement, or simply refusing to return the deposit.

F. Normal Wear and Tear Distinction

North Dakota case law recognizes that "normal wear and tear" means deterioration resulting from the intended use of the dwelling and the passage of time. The landlord bears the burden of proving that deductions relate to damage beyond ordinary use.

II. FACTUAL BACKGROUND

A. Tenancy Details

B. Move-Out Details

C. Condition of Premises at Surrender

Our Client affirms the following regarding the property's condition at move-out:

☐ Premises left in substantially the same condition as at move-in, normal wear and tear excepted
☐ Professional cleaning performed by [________________________________] on [__/__/____]
☐ All personal property removed from premises
☐ No unauthorized alterations made during tenancy
☐ Photographic/video documentation taken at both move-in and move-out
☐ Utility accounts kept current through move-out date (final bills available)

III. YOUR VIOLATIONS OF NORTH DAKOTA LAW

Based on the facts, you have violated one or more provisions of the NDCC as follows:

☐ Failure to Return Deposit Within 30 Days (NDCC § 47-16-07.1(2)): As of the date of this letter, more than thirty (30) days have elapsed since our Client vacated the premises and the lease terminated. You have failed to return any portion of the deposit or provide an itemized deduction statement.

☐ Failure to Provide Itemized Statement (NDCC § 47-16-07.1(2)): You failed to deliver a written, itemized statement of deductions within thirty (30) days. Under North Dakota law, failure to provide timely itemization may forfeit your right to withhold any portion of the deposit.

☐ Excessive Security Deposit (NDCC § 47-16-07.1(1)): You collected a security deposit exceeding one month's periodic rent in violation of the statutory cap. Our Client's monthly rent was $[________________________________], yet you collected $[________________________________] as a deposit.

☐ Improper Deductions: Your itemized statement (if any was provided) includes deductions that are not legally permissible:
☐ Normal wear and tear items (carpet wear, minor nail holes, paint fading)
☐ Pre-existing conditions documented at move-in
☐ Charges exceeding actual repair costs
☐ Charges for improvements or upgrades (not restoration)
☐ Other improper deductions: [________________________________]

☐ Wrongful Withholding Without Reasonable Justification (NDCC § 47-16-07.3): Your retention of the deposit lacks any good-faith basis, triggering treble damages liability.

IV. NORMAL WEAR AND TEAR — NORTH DAKOTA STANDARDS

The following items, if deducted from our Client's deposit, constitute normal wear and tear under North Dakota law and are not permissible deductions:

☐ Minor scuff marks or small nail holes in walls
☐ Worn carpet in high-traffic areas
☐ Faded or slightly discolored paint
☐ Minor scratches on hardwood floors from ordinary furniture use
☐ Worn weather stripping or caulking
☐ Loose grout or minor tile wear in bathrooms
☐ Worn finish on fixtures from ordinary use
☐ Dust, minor dirt, or cleaning consistent with normal turnover
☐ Stiff or worn window coverings and blinds
☐ Worn door handles or locks from regular use
☐ Other: [________________________________]

V. DAMAGES CALCULATION

A. Deposits Due

B. Statutory Treble Damages (NDCC § 47-16-07.3)

C. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following documentation:

☐ Original signed lease agreement
☐ Receipt or canceled check for security deposit payment
☐ Move-in condition checklist or inspection report
☐ Move-out condition checklist or inspection report
☐ Dated photographs of premises at move-in
☐ Dated photographs of premises at move-out
☐ Video walkthrough at move-out
☐ Written notice to vacate with proof of delivery
☐ Forwarding address notification with proof of delivery
☐ Professional cleaning receipts
☐ All correspondence with landlord regarding deposit
☐ Landlord's itemized statement (if any was received)
☐ Utility final bills confirming service through move-out
☐ Witness statements regarding property condition
☐ Other: [________________________________]

VII. DEMAND

We demand you take the following actions within fourteen (14) days of the date of this letter:

1. Full Return of Wrongfully Withheld Deposit: Pay our Client the sum of $[________________________________] representing the net deposit owed.

2. Treble Damages: Pay our Client the sum of $[________________________________] representing statutory treble damages under NDCC § 47-16-07.3.

3. Attorney Fees and Costs: Reimburse attorney fees and costs incurred to date: $[________________________________].

4. Total Payment Due: $[________________________________]

Payment must be by certified check or money order payable to [________________________________] and mailed to:

[________________________________] (Law Firm Name)
[________________________________] (Street Address)
[________________________________] (City, State ZIP)

Reference: [________________________________] — Security Deposit Demand

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply within the deadline stated above, we are prepared to:

A. File Suit

☐ North Dakota Small Claims Court — For claims up to $15,000 (NDCC Chapter 27-08.1). Filing fee is $10.00. North Dakota's small claims limit is among the highest in the nation, making it an efficient venue for most security deposit disputes. Cases are filed in the District Court of the county where the defendant resides or where the rental property is located.

☐ North Dakota District Court — For claims exceeding $15,000 or where equitable relief is sought.

B. Report Your Conduct

☐ North Dakota Attorney General — Consumer Protection Division (Bismarck, ND)
☐ City of [________________________________] Housing Authority (if applicable)
☐ Better Business Bureau — serving North Dakota

C. Pursue Full Enforcement

Upon obtaining judgment, we will pursue all available collection remedies under North Dakota law, including garnishment of wages and bank accounts, levy on personal property, and liens on real property.

IX. RESPONSE REQUIRED

Respond in writing within fourteen (14) days with:

1. Your position on the amounts owed
2. Documentation supporting any claimed deductions (receipts, invoices, photographs)
3. Full payment or a good-faith settlement proposal

Failure to respond will be treated as a refusal to comply, and we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to all rights and remedies available to our Client under North Dakota law and federal law, including but not limited to NDCC §§ 47-16-07.1 through 47-16-07.3. All such rights are expressly reserved. Nothing in this letter or any subsequent negotiation constitutes a waiver of any claim, defense, or remedy.

Respectfully submitted,

[________________________________] (Law Firm Name)

By: _________________________________
[________________________________] (Attorney Name)
North Dakota Bar ID No. [________________________________]
[________________________________] (Street Address)
[________________________________] (City, ND ZIP)
[________________________________] (Telephone)
[________________________________] (Email)

Attorneys for [________________________________]

ENCLOSURES:
☐ Copy of lease agreement
☐ Security deposit receipt / proof of payment
☐ Move-in/move-out photographs
☐ Written notice to vacate
☐ Forwarding address notification
☐ Landlord's deduction statement (if received)
☐ Professional cleaning receipts
☐ Authorization to represent

cc: [________________________________] (Tenant)
[________________________________] (Property Management Company, if applicable)
[________________________________] (Property Owner, if different from addressee)

NORTH DAKOTA SECURITY DEPOSIT — QUICK REFERENCE

NORTH DAKOTA-SPECIFIC NOTES

☐ Treble Damages Are Substantial. Unlike many states that provide only actual damages or double damages, North Dakota's NDCC § 47-16-07.3 authorizes treble (3x) damages for deposits withheld without reasonable justification, plus attorney fees. This is a powerful enforcement tool.

☐ $15,000 Small Claims Limit. North Dakota's small claims jurisdictional limit is one of the highest in the country. Most security deposit disputes — even those involving treble damages — can be resolved in small claims court with a $10.00 filing fee and no attorney required (though attorneys are permitted).

☐ No Interest or Escrow Mandate. North Dakota does not require landlords to hold deposits in separate accounts or pay interest. This reduces potential claims compared to states with escrow requirements but means tenants cannot claim interest as additional damages.

☐ Burden of Proof on Landlord. When a tenant challenges deductions, the landlord bears the burden of proving that retained amounts correspond to actual damages beyond normal wear and tear, not to improvements or routine turnover costs.

☐ Pet Deposit Treated Separately. A pet deposit is distinct from the security deposit and must be reasonably related to potential pet damage. However, the same 30-day return and itemization rules apply to pet deposits.

☐ Oral Leases Valid but Problematic. Oral leases are enforceable in North Dakota, but the absence of written terms makes deposit disputes harder to prove. Document everything.

☐ Manufactured Home Lot Rentals. Tenants on manufactured home lots have additional protections under NDCC Chapter 47-10, including specific notice requirements for lot rent increases and eviction procedures.

☐ Agriculture and Energy Workers. In North Dakota's oil-producing regions (Bakken formation), seasonal housing disputes are common. The same security deposit rules apply regardless of the tenant's employment sector or the lease's duration.

Sources and References

• NDCC § 47-16-07.1 — FindLaw
• North Dakota Small Claims Court — ND Courts
• NDCC Chapter 27-08.1 — Small Claims Court
• North Dakota Attorney General — Consumer Protection
• North Dakota Security Deposit Laws — Hemlane

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may change; verify current requirements with a licensed North Dakota attorney before use.