47-16 Leasing of Real Property - North Dakota Statutes

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CHAPTER 47-16LEASING OF REAL PROPERTY47-16-01. Leasing of real property - Definition. Leasing is a contract by which onegives to another the temporary possession and use of real property for reward and the latter
agrees to return such possession to the former at a future time.47-16-02. Limitations on leases. No lease or grant of agricultural land reserving anyrent or service of any kind for a longer period than ten years shall be valid. No lease or grant of
any city lot reserving any rent or service of any kind for a longer period than ninety-nine years
shall be valid.47-16-02.1. Rent controls - Prohibited. A political subdivision may not enact, maintain,or enforce an ordinance or resolution that would have the effect of controlling the amount of rent
charged for leasing private residential or commercial property. This section does not impair the
right of a political subdivision to manage and control residential property in which the political
subdivision has a fee title interest.47-16-03. Filing farm lease containing reservation of title to crop - Waiver of rightson failure to file. When a lease of a farm contains a provision reserving title in the lessor to any
part of the crops in excess of the rental share of the lessor until the stated conditions of the lease
have been complied with by the lessee, such lease must be filed in the office of the recorder in
the county in which the land described therein is located prior to July first in the year in which the
crops are raised to render such reservation of title effective as to subsequent purchasers or
encumbrancers of any part of the grain over and above the lessor's rental share produced upon
the land. The failure to file such lease or contract in accordance with this section constitutes a
waiver by the lessor of all rights reserved by that person over and above that person's rental
share in such crops as against any subsequent purchaser or encumbrancer of the lessee.47-16-04. Products during lease belong to lessee - Exception. In the absence of anyagreement to the contrary between the lessor and the lessee, the products received from real
property during the term of a lease belong to the lessee.47-16-05. Lease of realty presumed for one year. A lease of real property, other thanlodgings, in places where there is no usage on the subject, is presumed to be for one year from
its commencement, unless otherwise expressed in the lease.47-16-06. When a lease is presumed renewed. If a lessee of real property remains inpossession of the real property after the expiration of the lease and the lessor accepts rent from
the lessee, the parties are presumed to have renewed the lease on the same terms and for the
same time, not exceeding one year. Except in the case of a lease with an automatic renewal
clause, if a lessee of real property for residential purposes remains in possession of the property
after the expiration of the lease and the lessor accepts rent from the lessee, the parties are
presumed to have renewed the lease as a month-to-month tenancy.47-16-06.1. Automatic renewal of leases of residential real property - When noticerequired. Notwithstanding the provisions of section 47-16-06, in any lease of a specified term of
two months or more of real property used for residential purposes, the lessor may not enforce an
automatic renewal clause of a lease unless the lessor has notified the lessee in writing, delivered
personally or by first-class mail, of the automatic renewal provision, not less than thirty days prior
to the expiration date of the current lease. If such notice has not been given, the lease expires,
and the terms of the latest lease convert to a month-to-month tenancy.47-16-07.Leases - Notice by landlord to change terms - When effective. In allleases of land or tenements, or of any interest therein, from month to month, the landlord may
change the terms of the lease to take effect at the expiration of the month upon giving notice in
writing at least thirty days before the expiration of the month. The notice, when served upon the
tenant, shall operate and be effectual to create and establish as a part of the lease the terms,Page No. 1rent, and conditions specified in the notice, if the tenant shall continue to hold the premises after
the expiration of the month.For the purpose of this section, notice may be served in anyreasonable manner which actually informs the tenant of the changes in the terms of the lease.47-16-07.1.Real property and dwelling security deposits - Limitations andrequirements.1.The lessor of real property or a dwelling who requires money as a security deposit,
howeverdenominated,shalldepositthemoneyinafederallyinsuredinterest-bearing savings or checking account for the benefit of the tenant.Thesecurity deposit and any interest accruing on the deposit must be paid to the lessee
upon termination of a lease, subject to the conditions of subsection 2. A lessor may
not demand or receive security, however denominated, in an amount or value in
excess of one month's rent, except if the lessee is housing a pet on the leased
premises, the security may not exceed the greater of two thousand five hundred
dollars or an amount equivalent to two months' rent.2.A lessor may apply security deposit money and accrued interest upon termination of
a lease towards:a.Any damages the lessor has suffered by reason of deteriorations or injuries to
the real property or dwelling through the negligence of the lessee or the
lessee's guest.b.Any unpaid rent.c.The costs of cleaning or other repairs which were the responsibility of the
lessee, and which are necessary to return the dwelling unit to its original state
when the lessee took possession, reasonable wear and tear excepted.Application of any portion of a security deposit not paid to the lessee upon
termination of the lease must be itemized by the lessor. Such itemization together
with the amount due must be delivered or mailed to the lessee at the last address
furnished lessor, along with a written notice within thirty days after termination of the
lease and delivery of possession by the lessee.The notice must contain astatement of any amount still due the lessor or the refund due the lessee. A lessor is
not required to pay interest on security deposits if the period of occupancy was less
than nine months in duration.Any amounts not claimed from the lessor by thelessee within one year of the termination of the lease agreement are subject to the
reporting requirements of section 47-30.1-08.3.A lessor is liable for treble damages for any security deposit money withheld without
reasonable justification.4.Upon a transfer in ownership of the leased real property or dwelling, the security
deposit and accrued interest shall be transferred to the grantee of the lessor's
interest. The grantor shall not be relieved of liability under this section until transfer
of the security deposit to the grantee. The holder of the lessor's interest in the real
property or dwelling at the termination of a lease shall be bound by this section even
though such holder was not the original lessor who received the security deposit.5.This section applies to the state and to political subdivisions of the state that lease
real property or dwellings and require money as a security deposit.47-16-07.2.Statement detailing condition of premises to accompany rentalagreement. A landlord shall provide the tenant with a statement describing the condition of the
facilities in and about the premises to be rented at the time of entering a rental agreement. The
statement shall be agreed to and signed by the landlord and tenant.The statement shallPage No. 2constitute prima facie proof of the condition of the facilities and the premises at the beginning of
the rental agreement.47-16-07.3. When landlord may enter apartment. A landlord may enter the dwellingunit:1.At any time in case of emergency or if the landlord reasonably believes the tenant
has abandoned the premises, or the landlord reasonably believes the tenant is in
substantial violation of the provisions of the lease or rental agreement.2.Only during reasonable hours, and in a reasonable manner, for the purpose of
inspecting the premises; for making necessary or agreed repairs, decorations,
alterations, or improvements; for supplying necessary or agreed services; or for
exhibiting the residential dwelling unit to actual or potential purchasers, insurers,
mortgagees, real estate agents, tenants, workmen, or contractors.Unless it isimpractical to do so the landlord shall first notify and receive the consent of the
tenant which shall not be unreasonably withheld, which consent shall identify a time
certain.A landlord shall not abuse the right of access or use it to harass orintimidate the tenant.For the purposes of this section, consent shall be presumed from failure to object to access after
notice of intent to enter at a time certain has been given. Notice may be given by personal
service, by posting the notice in a conspicuous place in or about the dwelling unit for a
reasonable period of time, or by any other method which results in actual notice to the tenant.47-16-07.4. Fraudulent misrepresentations - Receipt of security deposit. A lease orrental agreement for real property or a dwelling unit which is entered into upon partial or total
reliance of fraudulent misrepresentations may be terminated by the party fraudulently induced
into the lease or rental agreement and that party shall receive any security deposit made
pursuant to the lease or rental agreement together with any accrued interest on the deposit.47-16-08. Quiet possession of leased property. An agreement to lease real propertybinds the lessor to secure to the lessee the quiet possession of such property during the term of
the lease against all persons lawfully claiming the same.47-16-09. Ordinary care must be exercised by lessee. The lessee of real propertymust use ordinary care to preserve such property in safety and to keep it in good condition.47-16-10. Injuries to real property - Must be repaired by lessee. The lessee of realproperty must repair all deteriorations or injuries thereto occasioned by the lessee's ordinary
negligence.47-16-11. Use of real property for purpose leased - Violation. When real property isleased for a particular purpose, the lessee must not use it for any other purpose. If the lessee
violates the lease in this respect, the lessor may hold the lessee responsible for the safety of the
property during such use in all events or may treat the contract as rescinded thereby.47-16-12. Obligations of lessor to repair dwelling. Repealed by S.L. 1977, ch. 429,