Property Management

A North Dakota commercial tenant who is late paying rent may be subject to a late fee. Under a properly drafted lease, such fees are enforceable if they are:

AUnlimited in amount
BReasonable and specified in the lease agreement✓ Correct
CSet by state statute only
DApproved by the NDREC

Explanation

Late fees in commercial leases are enforceable if they are clearly specified in the lease and reasonable in amount. Courts may reject excessive late fees as unenforceable penalty clauses.

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