Are there laws that protect a tenant from excessive late fees?

Yes, North Dakota has laws in place to protect tenants from excessive late fees. According to North Dakota Century Code (NDCC) Section 47-32-07, tenants may not be charged late fees more than 10 percent of the total rent due. Additionally, the late fee should be a “reasonable estimate of the costs the landlord will incur as a result of the late payment”. This means that the amount charged in late fees should reflect the amount of expenses the landlord has incurred due to the tenant’s late payment. Also, tenants should not be charged a late fee if they pay their rent within 30 days of the due date. Furthermore, North Dakota law does not allow landlords to include “penalty provisions” in rental agreements, which are clauses that require additional fees to be paid if rent is late. Violations of this law may result in fines for the landlord. In short, North Dakota does have laws to protect tenants from excessive late fees. Tenants must not be charged more than 10 percent of the rent due, the amount must reflect the actual costs incurred by the landlord, and there should be no additional penalty fees required.

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