The North Dakota commercial lease agreement establishes a rental agreement between a landlord and a tenant, or business. This contract outlines the responsibilities of each party. Commercial properties are expensive to maintain, so these leases are often longer than standard residential leases.
North Dakota Commercial Landlord/Tenant Laws
- In many cases, commercial tenancies have terms that run at least for three years. This varies significantly from residential leases, which can have as little as a six-month term. This is due to the fact that businesses require stability and want to be in the same accessible location for their customers.
- During a lease, a commercial enterprise may request renovations, upgrades, or new signage. For this reason, a commercial lease agreement has to be ironclad so that all aspects of the business’s growth and evolution are accounted for.
- Both the state of North Dakota and the federal government will require that landlords provide certain disclosures before beginning a lease. For example, if the building predates 1978, the landlord is required to let his or her prospective tenant know about the presence of lead-based paint, which is a hazard. Additionally, North Dakota also mandates that the landlord and tenant must have a walkthrough of the premises before the lease is authorized.
- Will there be opportunities for the lessee to sublease part of the property to another business? This is common for businesses like gas stations. It’s critical that the lease specifies rules on this.
- The document must be signed by both parties, have their name printed, and dated. It’s also preferable that the document is notarized as well.