North Dakota Commercial Lease Agreement

The North Dakota Commercial Lease Agreement is your compass in this dynamic landscape, providing a legally binding contract for commercial properties, including retail spaces, office buildings, and industrial facilities.

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North Dakota Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

  • Parties entering this agreement are legally obliged to act honestly and fairly in all dealings. It prohibits any actions that might cause harm or unjustly disadvantage the other party. 
  • Breaching this covenant can have legal repercussions, potentially leading to the commencement of legal proceedings to address the violation and seek appropriate remedies.

Statutory Notice Periods

  • In accordance with this lease agreement, both Lessors and Lessees are required to adhere to specified notice requirements upon lease termination.

  • For leases lacking a predetermined end date, a mandatory 30-day notice period is applicable.
  • Lessees can terminate the lease without incurring penalties by providing the Lessor with notice within this designated period.
  • At the conclusion of a lease term, a Lessor has the authority to implement a rent increase by serving a written notice with a 30-day notice period to the Lessee.

Security Deposits

  • In North Dakota, there’s a maximum limit on security deposit amounts, which cannot exceed one month’s rent.
  • Lessors are required to hold security deposits in a separate interest-bearing account.
  • After a Lessee moves out, Lessors must return the security deposit within 30 days.
  • Lessors can withhold all or part of a security deposit for various reasons, including property damage caused by Lessee negligence, failure to pay rent, or expenses related to cleaning or repairs beyond normal wear and tear.
  • To retain any part of the deposit, Lessors must provide an itemized list of services and associated costs to the Lessee’s most recent address.
  • Lessors who fail to return the security deposit or withhold it for improper reasons violating the North Dakota Century Code can be held liable for triple the amount withheld.
  • Lessors must repay any accrued interest on a security deposit for a tenancy lasting over nine (9) months to the Lessee upon the return of the security deposit.


  • Lessors in North Dakota are obligated to fairly communicate the property’s condition to Lessees through a signed North Dakota Commercial Lease Agreement between both parties. 
  • While North Dakota lacks specific policies on lead paint, federal laws dictate that in buildings constructed before 1978, lessors must disclose the potential presence of lead paint to lessees. 
  • Lessors must also provide all Lessees with a copy of the Environmental Protection Agency’s “Protect Your Family from Lead in Your Home” pamphlet as per federal regulations.

Termination and Renewal

  • If a Lessee doesn’t vacate the property at the end of a lease term and the Lessor continues to collect rent, both parties should assume that the lease is renewed. 
  • Lessors can initiate eviction proceedings when Lessees violate lease terms, fail to rectify the violation, or neglect to pay rent. A three (3) day notice is required to commence the eviction process.