This bill proposes amendments to the North Dakota Century Code regarding security deposits and the inspection process for leased properties. It modifies Section 47-16-07.1 by removing the phrase "however denominated" and introduces new requirements for lessors regarding the handling of security deposits. Specifically, it mandates that any portion of a security deposit not returned to the lessee upon lease termination must be itemized and communicated to the lessee within thirty days, including a detailed account of deductions made from the deposit. Additionally, it establishes that a lessor is not required to pay interest on security deposits if the lease duration is less than nine months and introduces treble damages for unjustified withholding of security deposits.

Furthermore, the bill creates a new section that outlines mandatory inspections of leased premises. It requires landlords and tenants to conduct a move-in inspection to document any existing damages and a move-out inspection to assess the condition of the property before the lease ends. Both parties must sign a written statement acknowledging the inspections, and if the tenant fails to attend the scheduled inspection, the landlord can proceed without them, with the tenant's absence considered acceptance of the inspection results. If the landlord fails to schedule or attend the inspection, they are deemed to accept the property's condition, resulting in the full return of the security deposit to the tenant.

Statutes affected:
INTRODUCED: 47-16-07.1