This bill amends section 47-16-07.1 of the North Dakota Century Code regarding tenant security deposits and introduces a new section on mandatory inspections of leased properties. The amendments specify that lessors must deposit security deposits in federally insured interest-bearing accounts and outline the conditions under which security deposits can be withheld. 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 a tenant moves in and after they provide notice to vacate. These inspections must be documented in a written statement that details any damages and includes a remediation plan. If a tenant fails to attend the scheduled inspection, the landlord can proceed with the inspection and send the results to the tenant, who is then deemed to accept the findings. Conversely, if the landlord fails to schedule or attend the inspection, they are considered 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