47-16 Leasing of Real Property

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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. 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47-16 Leasing of Real Property