This bill amends section 47-16-07.1 of the North Dakota Century Code regarding security deposits for leased properties and introduces a new section on mandatory inspections. The amendments specify that lessors must deposit security deposits in a federally insured interest-bearing account and outline the conditions under which they can withhold portions of the deposit upon lease termination. Notably, the bill removes the phrase "however denominated" from the text, clarifying the definition of security deposits. It also requires lessors to provide an itemized list of any deductions from the security deposit within thirty days of the lease termination, including estimates from a move-out inspection.

The newly enacted section mandates that both landlords and tenants conduct inspections before move-in and after notice to vacate, documenting any damages and remediation plans. The inspections must be acknowledged in writing by both parties, and if a tenant fails to attend the scheduled inspection, the landlord can proceed without them, with the tenant's absence considered acceptance of the inspection results. Additionally, if the landlord fails to schedule or attend the inspection, they are deemed to accept the condition of the premises, and the tenant is entitled to a full return of their security deposit and accrued interest.

Statutes affected:
INTRODUCED: 47-16-07.1