SECURITY DEPOSIT ITEMIZATION LETTER

(North Dakota Residential Tenancies)

[// GUIDANCE: This template is drafted to comply with N.D. Cent. Code § 47-16-07.1 and is structured for quick attorney customization. Bracketed items must be completed or deleted before use. Optional text appears in grey brackets (⟦ … ⟧).]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Re: Itemized Accounting and Disposition of Security Deposit
Date: [DATE]
From (Landlord): [LANDLORD LEGAL NAME], [ENTITY TYPE], [ADDRESS], [PHONE], [EMAIL]
To (Tenant): [TENANT LEGAL NAME(S)], [LAST-KNOWN ADDRESS]
Premises: [STREET ADDRESS, CITY, ND ZIP]
Lease Agreement: Dated [LEASE DATE] between Landlord and Tenant (the “Lease”)
Security Deposit Amount Held: $[AMOUNT] (the “Security Deposit”)

2. DEFINITIONS

For purposes of this Letter, the following terms have the meanings set forth below:

“Accrued Interest” – Interest earned on the Security Deposit at the statutory rate pursuant to N.D. Cent. Code § 47-16-07.1(2).

“Deduction” – Any amount lawfully retained by Landlord from the Security Deposit pursuant to Section 3.2.

“Normal Wear and Tear” – Deterioration that occurs without negligence, carelessness, accident, or abuse by Tenant, any permitted occupant, or invitee.

“Premises” – The residential dwelling unit identified in the Document Header.

“Refund Deadline” – Thirty (30) days after termination of the tenancy and Tenant’s delivery of possession of the Premises to Landlord, as mandated by N.D. Cent. Code § 47-16-07.1(3).

3. OPERATIVE PROVISIONS

3.1 Security Deposit Accounting
Within the Refund Deadline, Landlord hereby provides the following accounting:

3.2 Allowable Deductions
Deductions have been limited to:
a. Unpaid rent and late fees accrued under the Lease;
b. Costs to repair damage exceeding Normal Wear and Tear;
c. Reasonable cleaning necessary to restore the Premises to the condition existing at lease-commencement, ordinary wear excepted; and
d. Charges specifically authorized in the Lease.

3.3 Delivery of Refund
Landlord encloses a check in the Net Amount Due Tenant, made payable to [TENANT NAME(S)], and mailed to the address shown above.

3.4 Forwarding Address
If Tenant elects to have payment mailed elsewhere, Tenant must notify Landlord in writing within five (5) business days of the date of this Letter.

4. REPRESENTATIONS & WARRANTIES

4.1 Landlord represents and warrants that:
a. The above accounting is true, correct, and complete to the best of Landlord’s knowledge;
b. All Deductions are permitted under N.D. Cent. Code § 47-16-07.1 and the Lease; and
c. No Deduction has been taken in bad faith.

4.2 Survival
These representations survive the delivery of the Net Amount Due Tenant.

5. COVENANTS

5.1 Tenant Covenants
Tenant shall promptly negotiate the enclosed check and provide Landlord with a written statement of any disputed item within fourteen (14) days of receipt of this Letter.

5.2 Landlord Covenants
Landlord shall retain supporting documentation (receipts, invoices, photographs) for a minimum of three (3) years and will furnish copies upon written request.

6. DEFAULT & REMEDIES

6.1 Dispute Procedure
a. Written Notice: Tenant must detail each disputed Deduction in writing (email acceptable) within the fourteen-day period.
b. Meet-and-Confer: Upon timely notice, the parties shall confer in good faith to resolve the dispute within ten (10) days.
c. Escalation: Failing resolution, either party may pursue the remedies in Section 8.

6.2 Statutory Remedies
If a court of competent jurisdiction determines Landlord wrongfully withheld all or part of the Security Deposit, Tenant may recover the sum wrongfully withheld plus statutory penalties provided in N.D. Cent. Code § 47-16-07.1(4).

6.3 Attorney Fees
The prevailing party in any action arising out of this Letter shall be entitled to reasonable attorney fees and costs, as allowed by law.

7. RISK ALLOCATION

7.1 Limitation of Liability
Except for statutory penalties expressly imposed by N.D. Cent. Code § 47-16-07.1, Landlord’s liability under this Letter shall not exceed the Security Deposit plus Accrued Interest.

7.2 Force Majeure
Neither party shall be liable for delays in performance caused by events beyond its reasonable control; provided, however, this shall not extend the Refund Deadline absent Tenant’s written consent.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Letter shall be governed by the laws of the State of North Dakota, without regard to conflict-of-laws principles.

8.2 Forum Selection
Any action arising hereunder shall be brought exclusively in the [COUNTY] District Court, State of North Dakota (the “Housing Court”).

8.3 Arbitration
Arbitration is expressly excluded.

8.4 Jury Waiver
Nothing herein shall be construed as a waiver of a constitutional right to trial by jury.

8.5 Injunctive Relief
Because the dispute concerns money damages only, equitable relief is expressly limited to that necessary to enforce monetary judgments.

9. GENERAL PROVISIONS

9.1 Entire Agreement
This Letter constitutes the entire agreement regarding disposition of the Security Deposit and supersedes all prior communications on that topic.

9.2 Amendment; Waiver
No amendment or waiver is effective unless in a writing signed by the party against whom enforcement is sought.

9.3 Assignment
Rights and obligations under this Letter may not be assigned except as permitted by law.

9.4 Severability
If any provision is held unenforceable, the remaining provisions shall be enforced to the fullest extent permitted by law.

9.5 Counterparts; Electronic Delivery
This Letter may be executed in counterparts, each of which is deemed an original. Signatures delivered electronically shall be deemed originals.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, Landlord has executed and delivered this Security Deposit Itemization Letter as of the Date first written above.

[LANDLORD LEGAL NAME]
By: _____
Name: [PRINTED NAME]
Title: [TITLE, if entity]
Date: _________

ACKNOWLEDGED:
[TENANT NAME] ⟦(optional)⟧
Signature: ____
Date: ________

[// GUIDANCE: Attach copies of all receipts, invoices, photographs, and any other substantiating documentation referenced in Section 3.1. Retain proof of mailing or personal delivery to establish compliance with the Refund Deadline.]