The North Carolina lease agreement represents an outlined arrangement between a lessor and lessee regarding utilizing a residential or commercial space for a defined time and specified payment schedule. The paper register assigns the particulars of the agreement to writing, including names, contact information, property address, monthly rate, lease terms, and conditions. The agreement serves to protect the involved parties, as the default of any provision could lead to the potential breach of contract.
Lease Agreements By Type
Commercial Lease Agreement – Summarizes the provisions, period length, and pricing of the lease of real estate for a business entity solely for company use.
Lease to Own Agreement – Exemplifies a written testimony accounting for the terms associated with renting a property with an additional clause offering an option to buy upon the end of the leasing period.
Month-to-Month Lease – Manifests a contract signifying a term lease with a preference of possible early termination with notification of thirty (30) days prior.
Roommate Agreement – Renders the account of an obligation for a person to utilize a segment of the space offered by a current tenant for a distinct time and financial responsibility.
Sublease Agreement – Denotes the details involving a present tenant offering a lease arrangement of the domicile to another individual.
The state’s general assembly has an online catalog describing, at length, the many legalities constituting North Carolina General Statutes §42 – Landlord and Tenant regulation.
Required Landlord Disclosures
Location of Security Deposit (§ 42-50) -The state of North Carolina mandates that any landlord requesting a security deposit for a lease agreement must furnish information as to where the money is to be held. The financial institution in which the owner elects to deposit must be federally insured. The state allows thirty (30) days from contract commencement to provide the exact name and address of the bank or insurance bond company.
Lead-Based Paint (42 U.S. Code § 4852d) – Houses and apartments that were constructed before 1979 are held to an additional standard of notification of the possible threat that lead-composed paints suggest. The landlord must distribute materials to educate the tenant on the precautions that should be taken and issues that could arise when coming into contact with the hazardous matter.
When is Rent Late?
Tenants are expected to compensate the lessee with the agreed-upon amount on the exact date characterized in the lease agreement. Rent received later than five (5) days past the due-date will surpass the allotted grace period and could be subject to incur late fees (§ 42-46).
Should a landlord elect to charge an amount triggered by late rental payment, it is to be outlined in the leasing agreement in order to be compelled by the law. Limitation on the amount that can be enforced by an owner is the higher amount of either $15 or 5% on rental payments due each month or $4 or 5% on rental payments due each week (§ 42-46).
If a financial institution should return a check accepted by the landlord, a charge can be incurred by the tenant. State law allows for a maximum of $25 per returned check, but the amount could be less dependent on the amount stated in the contract (§ 25-3-506).
Security Deposit Maximum
The limit prescribed by the state government on the sum an owner can prescribe to secure the property for occupancy differs for each agreement category (§ 42-51):
- Leases more prolonged than a traditional month-to-month – no more than two months’ rent.
- Month-to-month leases – No more than one and one-half months’ rent.
- Week-to-week leases – No more than two weeks’ rent.
Security Deposit Return
At the end of the leasing period, the security deposit is to be delivered to the tenant at a provided forwarding address within thirty (30) days. For cases where damages to the property, unpaid rent/utilities, or breach of the agreement are sustained, the landlord will be allowed sixty (60) days for the return of the deposit and an itemized account (§ 42-52).
There is no definitive legislature determining the amount of advanced notification a landlord or manager is required to give before entering the premises.
How to Write
Download: Adobe PDF, Microsoft Word (.docx)