North Dakota Lease Agreements | Residential & Commercial

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A North Dakota lease agreement is a rental contract between a landlord and tenant for commercial or residential property. In most situations, after a prospective tenant views and shows interest in a property, their credit and income will be verified by the landlord. Afterward, a lease is written with the tenant obligated to pay the first (1st) month’s rent and a security deposit (if any) at lease signing.

Rental Application – For the screening process on behalf of the landlord so that they may be able to view the background n the individual and ensure the tenant is credible.

Table of Contents

Agreement Types (7)


Commercial Lease Agreement – For the purposes of renting a property for business or professional use.

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Lease with Option to Purchase Agreement – Also referred to as a ‘Lease to Own’ where the tenant is given a chance to acquire the property in accordance with agreed-upon terms.

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Month-to-Month Lease Agreement (§ 47-16-15) – Type of arrangement with a commencement but with no end date. The landlord or tenant may terminate the document with at least thirty (30) days’ notice.

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Room Rental (Roommate) Agreement – Designated for individuals sharing a residential dwelling with common space such as living rooms, kitchen areas, etc.

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Standard Residential Lease Agreement – For a specified term usually lasting twelve (12) months.

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Sublease Agreement – The act of subletting which starts with a tenant who has an agreement with a landlord to re-rent space to another person known as the ‘subtenant’.

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Termination Lease Letter (§ 47-16-15) – This form may be used to cancel a month-to-month arrangement with at least thirty (30) days’ notice. If the landlord attempts to change the agreement, such as raise rent, the tenant has the right to terminate the tenancy with at least twenty-five (25) days’ notice (§ 47-16-07).

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Disclosures

Lead-Based Paint Disclosure – Federal law requiring all landlords, property managers, and agents to disclose to any potential lessee the awareness of lead paint in building structures built prior to 1978.

Property Condition Statement (§ 47-16-07.2) – The landlord is required to provide the tenant with an inventory checklist describing the current state of the premises and facilities. This must be done at the time of entering into a rental agreement and signed by both landlord and tenant.

Access

According to § 47-16-07.3, the landlord may go inside the property with reasonable notice given to the tenant, and during reasonable hours of the day.

Security Deposits

The landlord must deposit all funds into a federally insured interest-bearing savings or checking account for the benefit of the tenant.

Maximum (§ 47-16-07.1) – The landlord may ask for up to one (1) month’s rent for a tenant with no pets and up to two (2) months’ rent or a maximum of two-thousand five hundred dollars ($2,500) if there is a pet.

Returning (§ 47-16-07.1) – All funds must be returned within thirty (30) days from the end period and possession has been given back to the landlord.

Helpful Resources

(Video) What are the North Dakota Rental Laws?