North Carolina Residential Lease Agreement

North Carolina Residential Lease Agreement

(Lease for Term or Month-to-Month)

Terms and Conditions

This lease agreement (the “Agreement”), made and entered into this _____ day of _____, 20_____, by and between the person or entity named as Landlord in the Data Schedule below (“Landlord”), whose address is stated there, and the person(s) named as Tenant in the Data Schedule below (“Tenant”).

Landlord is the owner of certain real property being, lying and situated in the North Carolina county stated in the Data Schedule below, or is the owner’s authorized agent, such real property having the street address stated in the Data Schedule below (the “Premises”).

For good and valuable consideration, the receipt and sufficiency of which are acknowledged, Landlord and Tenant agree as follows:

1. TERM. This Agreement shall commence on _____ (“Commencement Date”).

Check exactly one — this Agreement is not effective unless and until exactly one box below is checked:

☐ (a) Lease: This Agreement shall continue as a lease for term. The termination date shall be on (date) _____ at 11:59 PM. Upon termination date, Tenant shall be required to vacate the Premises unless one of the following circumstances occur: (i) Landlord and Tenant formally extend this Agreement in writing or create and execute a new, written, and signed agreement; or (ii) Landlord willingly accepts new Rent from Tenant, which does not constitute past due Rent. If Landlord accepts from Tenant new Monthly Rent (other than past-due Monthly Rent) after the termination date, a month-to-month tenancy shall be created on the terms stated in TENANT’S HOLD OVER, below, at the Holdover Monthly Rent stated in the Data Schedule (or, if none is stated, the Monthly Rent), and either party may terminate that tenancy by following the procedures specified in section 1(b). Acceptance of such Rent is not a waiver of any default existing at the termination date. All other terms and conditions as outlined in this Agreement shall remain in full force and effect.

☐ (b) Month-to-Month: This Agreement shall continue as a month-to-month tenancy. Either party may terminate this month-to-month tenancy by giving the other party written notice of intention to terminate at least seven (7) days before the end of the then-current monthly rental period (N.C. Gen. Stat. § 42-14), and the tenancy ends at the end of that rental period. Notice may be given on any calendar day; if fewer than seven (7) days remain in the current rental period when notice is given, the tenancy ends at the end of the following rental period.

2. RENT. Under the terms of this Agreement, “Monthly Rent” means the periodic rent stated in the Data Schedule. “Rent” means Monthly Rent. Late Charge, administrative fees under N.C. Gen. Stat. § 42-46(e) through (g), processing fees, insurance-related charges, and other sums Tenant owes are additional charges, not Rent; the Security Deposit is not Rent. Tenant shall pay the Monthly Rent to Landlord for the term of this Agreement. Due date for Monthly Rent shall be the 1st day of each calendar month and shall be considered advance payment for that month. If not remitted on the 1st, Monthly Rent shall be considered overdue and delinquent on the 2nd day of each calendar month. In the event that the Commencement Date is not the 1st of the calendar month, Monthly Rent remitted on the Commencement Date shall be prorated based on a 30-day period. Payments received from Tenant shall be applied first to Monthly Rent, beginning with the oldest unpaid installment, and then to other amounts owed in the order incurred; provided that no Late Charge, and no administrative fee under N.C. Gen. Stat. § 42-46(e) through (g), shall be deducted from a subsequent Monthly Rent payment so as to cause that payment to be in default, and Tenant’s failure to pay a Late Charge or such an administrative fee shall not by itself constitute a default in the payment of Rent for purposes of the DEFAULT section or any summary ejectment action, but remains an amount owed and recoverable by Landlord (N.C. Gen. Stat. § 42-46(b), (h)(2)).

Acceptable forms of payment of Rent shall be (check all that apply):

☐ personal check ☐ money order ☐ cashier’s check

☐ other: _____.

If no box is checked, any of the listed forms is acceptable until Landlord designates otherwise in writing.

Payment shall be made to Landlord under the name and address stated in the Data Schedule.

If any check given by Tenant is returned unpaid because of insufficient funds or because Tenant had no account at the payor bank, Landlord may charge a processing fee to the extent authorized by N.C. Gen. Stat. § 25-3-506. If any check is so returned, or if Tenant stops payment on a check, Landlord may require in writing that Tenant pay Rent in cash for three (3) months and that all future Rent payments be remitted by money order or cashier’s check. Landlord reserves all other rights and remedies available under applicable law. This Agreement does not authorize a processing fee on returned electronic (ACH, debit, or card) payments.

3. SECURITY DEPOSIT. Tenant shall deposit with Landlord upon the execution of this Agreement, as a Security Deposit, the amount stated in the Data Schedule. The Security Deposit, together with any refundable pet deposit under the ANIMALS section, shall not exceed the maximum amount permitted by N.C. Gen. Stat. § 42-51(b). Landlord will deposit the Security Deposit in a trust account at the licensed, federally insured depository institution or trust institution authorized to do business in North Carolina identified in the Data Schedule, or will furnish a bond from the insurance company identified there, in accordance with N.C. Gen. Stat. § 42-50. The Schedule entry is the notice of the institution or insurer required by that section.

In accordance with N.C. Gen. Stat. § 42-50 et seq., this Security Deposit shall be managed following the requirements of the North Carolina Tenant Security Deposit Act. AT LANDLORD'S DISCRETION, LANDLORD MAY PLACE THE DEPOSIT IN AN INTEREST-BEARING TRUST ACCOUNT WITH THE INSTITUTION IDENTIFIED IN THE Data Schedule. ALL INTEREST EARNED ON THE SECURITY DEPOSIT SHALL ACCRUE FOR THE SOLE BENEFIT OF THE LANDLORD AND SHALL BE PAID TO LANDLORD OR AS DIRECTED BY LANDLORD. LANDLORD MAY WITHDRAW SUCH INTEREST FROM THE ACCOUNT AS OFTEN AS PERMITTED BY THE ACCOUNT'S TERMS.

Upon the termination of the tenancy and delivery of possession of the Premises to Landlord, Landlord shall apply the Security Deposit as permitted by N.C. Gen. Stat. § 42-51 or refund it, and shall in writing itemize any damage and mail or deliver the itemization to Tenant, together with the balance of the Security Deposit, no later than thirty (30) days after termination of the tenancy and delivery of possession. If the extent of Landlord’s claim against the Security Deposit cannot be determined within thirty (30) days, Landlord shall provide Tenant an interim accounting no later than thirty (30) days after termination of the tenancy and delivery of possession, and a final accounting within sixty (60) days after termination of the tenancy and delivery of possession. If Tenant’s address is unknown to Landlord, Landlord shall apply the Security Deposit as permitted by N.C. Gen. Stat. § 42-51 after a period of thirty (30) days and shall hold the balance of the Security Deposit for collection by Tenant for at least six (6) months. Landlord may not withhold from the Security Deposit, as damages, amounts for conditions due to normal wear and tear, nor retain an amount exceeding Landlord’s actual damages (N.C. Gen. Stat. § 42-52). Tenant shall provide Landlord with a forwarding address upon vacating the Premises. If this Agreement includes multiple individuals as Tenants, Landlord may pay any remaining balance of the Security Deposit to any of these individuals, and all Tenants agree to indemnify Landlord for this action.

Tenant consents to the transfer of the Security Deposit between Landlord and any property manager or other agent Landlord engages, and to the successor trust account or bond of the transferee; Landlord or its agent shall notify Tenant in writing of the transfer and of the institution or insurer then holding or securing the Security Deposit, and the transferor is thereupon discharged of further responsibility for it. Upon termination of Landlord’s interest in the Premises, whether by sale, assignment, death, appointment of a receiver, or otherwise, Landlord or Landlord’s agent shall, within thirty (30) days, either (i) transfer the remaining Security Deposit, after lawful deductions, to Landlord’s successor in interest and thereafter notify Tenant by mail of the transfer and of the transferee’s name and address, or (ii) return the remaining Security Deposit, after lawful deductions, to Tenant. Completion of (i) or (ii) relieves the transferring landlord or agent of further liability with respect to the Security Deposit (N.C. Gen. Stat. § 42-54).

4. USE OF PREMISES. The Premises shall be used and occupied by Tenant and the other occupants, if any, listed in the Data Schedule, exclusively, as a private single family dwelling, and no part of the Premises shall be used at any time during the term of this Agreement by Tenant for the purpose of carrying on any business, profession, or trade of any kind, or for any purpose other than as a private single family dwelling. Tenant shall not allow any other person, other than the listed occupants or guests of Tenant staying no more than fourteen (14) days in any thirty (30) day period, to use or occupy the Premises without first obtaining Landlord’s written consent to such use. Tenant shall comply with any and all laws, ordinances, rules and orders of any and all governmental or quasi-governmental authorities affecting the cleanliness, use, occupancy and preservation of the Premises.

5. JOINT AND SEVERAL LIABILITY; OCCUPANTS. If more than one individual signs this Agreement as Tenant, each such individual is an adult and is jointly and severally liable for all of Tenant’s obligations under this Agreement. Only adults may be parties to this Agreement. Persons listed as occupants in the Data Schedule (including minors) are authorized to reside in the Premises but are not parties to this Agreement and acquire no rights or obligations under it except as provided by law.

6. ASSIGNMENT, SUBLEASING, AND SUBLETTING. Tenant may not assign Tenant’s interests under this Agreement, sublease or sublet any portion of the Premises, or grant any license to use any portion of the Premises without the prior written consent of Landlord. Any unapproved attempt by Tenant to assign, sublease, sublet, or license all or any portion of Tenant’s interest under this Agreement shall qualify as a material breach of this Agreement. Such actions (whether through voluntary act, operation of law, or otherwise) shall be deemed null and void regarding the transfer of such interest to any third party. The prohibited activities described in this section shall include but are not limited to subleasing or subletting through short-term rental or sharing services such as Airbnb®, Craigslist®, Vrbo®, or any rental, sharing, exchanging, or hosting platform. A consent by Landlord to one such assignment, subleasing, subletting, or license is not consent to any subsequent assignment, subleasing, subletting, or license.

7. CONDITION OF PREMISES. Tenant stipulates, represents and warrants that Tenant has examined the Premises, and that they are as of the Commencement Date in good order, repair, and in a safe, clean and tenantable condition. Nothing in this section is a waiver, release, or satisfaction of Landlord’s duties under N.C. Gen. Stat. § 42-42(a), and Tenant’s acceptance of the Premises does not release those duties (N.C. Gen. Stat. § 42-42(b)). Tenant shall deliver to Landlord, within five (5) days after the Commencement Date, a written list of any pre-existing damage; absent such a list, the Premises are deemed to have been delivered without damage for purposes of the Security Deposit accounting.

8. ALTERATIONS AND IMPROVEMENTS. Tenant shall make no alterations to the buildings or improvements on the Premises or construct any building or make any other improvements on the Premises without the prior written consent of Landlord. Any and all alterations, changes, and/or improvements built, constructed or placed on the Premises by Tenant shall, unless otherwise provided by written agreement between Landlord and Tenant, be and become the property of Landlord and remain on the Premises at the expiration or earlier termination of this Agreement.

9. NON-DELIVERY OF POSSESSION. In the event Landlord cannot deliver possession of the Premises to Tenant upon the Commencement Date, through no fault of Landlord or its agents, then Landlord or its agents shall have no liability, but the rental herein provided shall abate until possession is given. Landlord or its agents shall have thirty (30) days in which to give possession, and if possession is tendered within such time, Tenant agrees to accept the Premises and pay the rental herein provided from that date. In the event possession cannot be delivered within such time, through no fault of Landlord or its agents, then this Agreement and all rights hereunder shall terminate.

10. HAZARDOUS MATERIALS. Tenant shall not keep on the Premises any item of a dangerous, flammable or explosive character that might unreasonably increase the danger of fire or explosion on the Premises or that might be considered hazardous or extra hazardous by any responsible insurance company.

11. CRIMINAL ACTIVITY. Tenant, the occupants, and their guests shall not engage in or permit any criminal activity, including drug-related criminal activity, on or in the immediate vicinity of the Premises. Any such activity is a material, non-curable breach of this Agreement for which Tenant’s estate shall cease and Landlord may recover possession by summary ejectment under Article 3 of Chapter 42, in addition to the expedited remedies of Article 7 of Chapter 42 (N.C. Gen. Stat. § 42-59 et seq.), which the parties acknowledge apply to this Agreement (N.C. Gen. Stat. § 42-59.1).

12. UTILITIES. Tenant shall place in Tenant’s name and pay for all utilities and services to the Premises except the following, which Landlord shall provide: _____. Tenant shall not permit any utility to be disconnected for nonpayment.

13. MAINTENANCE AND REPAIR; RULES. Tenant will, at its sole expense, keep and maintain the Premises and appurtenances in good and sanitary condition and repair during the term of this Agreement and any renewal thereof. Without limiting the generality of the foregoing, unless the parties agree otherwise Tenant shall:

(a) Not obstruct the driveways, sidewalks, courts, entry ways, stairs and/or halls, which shall be used for the purposes of ingress and egress only;

(b) Keep all windows, glass, window coverings, doors, locks and hardware in good, clean order and repair;

(c) Not obstruct or cover the windows or doors;

(d) Not leave windows or doors in an open position during any inclement weather;

(e) Not hang any laundry, clothing, sheets, etc. from any window, rail, porch or balcony nor air or dry any of same within any yard area or space;

(f) Not cause or permit any locks or hooks to be placed upon any door or window without the prior written consent of Landlord;

(g) Keep all air conditioning filters clean and free from dirt;

(h) Keep all lavatories, sinks, toilets, and all other water and plumbing apparatus in good order and repair and shall use same only for the purposes for which they were constructed. Tenant shall not allow any sweepings, rubbish, sand, rags, ashes or other substances to be thrown or deposited therein. Any damage to any such apparatus and the cost of clearing stopped plumbing resulting from misuse shall be borne by Tenant;

(i) And Tenant’s family and guests shall at all times maintain order in the Premises and at all places on the Premises, and shall not make or permit any loud or improper noises, or otherwise disturb other residents;

(j) Keep all radios, television sets, stereos, entertainment system, etc., turned down to a level of sound that does not annoy or interfere with other residents;

(k) Deposit all trash, garbage, rubbish or refuse in the locations provided therefor and shall not allow any trash, garbage, rubbish or refuse to be deposited or permitted to stand on the exterior of any building or within the common elements;

(l) Not engage in smoking or the use of vapor-generating electronic devices, including, but not limited to, tobacco, marijuana, or cannabis (THC, CBD), within the interior or exterior boundaries of the Premises. Should Tenant breach this provision, Tenant shall be liable for all costs associated with the cleaning, restoration, deodorizing, abatement, repainting, or replacement of any affected ductwork, carpeting, vinyl flooring, or curtains that may be required as a result of such breach;

(m) Abide by and be bound by any and all rules and regulations affecting the Premises or the common area appurtenant thereto which may be adopted or promulgated by the Owner Association having control over them.

Except in an emergency, Tenant shall notify Landlord in writing of any needed repair to the electrical, plumbing, sanitary, heating, ventilating, air-conditioning, or other facilities or appliances supplied by Landlord, and Landlord’s duty to repair those facilities and appliances is conditioned on that written notice as provided in N.C. Gen. Stat. § 42-42(a)(4). Tenant may not unilaterally withhold Rent prior to a judicial determination of a right to do so (N.C. Gen. Stat. § 42-44(c)). Tenant shall comply with N.C. Gen. Stat. § 42-43 and shall pay Landlord the actual and reasonable cost of any repair, including repair of an imminently dangerous condition, that is the fault of Tenant, Tenant’s household, guests, or animals (N.C. Gen. Stat. §§ 42-42(a)(8), 42-43(a)(4), (a)(6)).

Nothing in this section shifts, waives, or conditions Landlord’s duties under N.C. Gen. Stat. § 42-42(a), including the duty to make whatever repairs are necessary to put and keep the Premises in a fit and habitable condition, and the obligations of Landlord and Tenant under this Agreement are mutually dependent as provided by N.C. Gen. Stat. § 42-41.

14. SMOKE AND CARBON MONOXIDE ALARMS. N.C. Gen. Stat. § 42-42 requires the Landlord to provide smoke alarms that are functional and powered by either batteries or electricity. If the Premises has a fossil fuel-burning appliance, fireplace, or heater, or an attached garage, Landlord must install no less than one (1) carbon monoxide alarm per rental unit per level, which must be functional and powered by either batteries or electricity. In writing, Tenant must inform the Landlord of any necessary replacements or repairs to smoke or carbon monoxide alarms. The Landlord must make such replacements or repairs within fifteen (15) days of receiving Tenant's written notification. At the beginning of the tenancy, Landlord must ensure that smoke and carbon monoxide alarms are functioning and in good condition. As a written agreement to the contrary under N.C. Gen. Stat. § 42-42(a)(5) and (7), Tenant shall install new batteries in all battery-operated smoke and carbon monoxide alarms at the beginning of the tenancy and shall replace the batteries as needed during the tenancy, except where the alarm is a tamper-resistant, 10-year lithium battery alarm. When installing a new smoke alarm or replacing an existing smoke alarm, Landlord shall install a tamper-resistant, 10-year lithium battery smoke alarm unless the dwelling unit is equipped with a hardwired smoke alarm with battery backup or with a combination smoke/carbon monoxide alarm that meets N.C. Gen. Stat. § 42-42(a)(7) (N.C. Gen. Stat. § 42-42(a)(5a)). Tenant shall not remove, disconnect, disable, or tamper with any smoke or carbon monoxide alarm, and is liable for damage to or destruction of any alarm (N.C. Gen. Stat. § 42-51(a)(2)).

15. INSURANCE. Landlord, Landlord’s agent or manager, or, if applicable, the Owner Association, are not responsible for insuring Tenant’s or Tenant’s permitted visitors’ personal property and vehicles against loss or damage due to theft, vandalism, fire, water, rain, criminal or negligent acts of others, or any other cause. LANDLORD HAS ADVISED TENANT TO CARRY TENANT’S OWN INSURANCE (RENTER’S INSURANCE) TO PROTECT TENANT FROM ANY SUCH LOSS OR DAMAGE. Upon Landlord’s written notice identifying an insurer’s objection to an activity or condition caused or permitted by Tenant at the Premises, Tenant shall discontinue the activity or correct the condition within Tenant’s control to the extent permitted by law and necessary to prevent an increased premium, cancellation, or nonrenewal of Landlord’s insurance covering the Premises. Tenant is liable for Landlord’s actual damages proximately caused by Tenant’s breach of this covenant or another provision of this Agreement, including documented incremental insurance premiums and reasonable incremental costs of obtaining replacement coverage. Payment does not excuse the breach. Amounts payable under this section are damages, not Rent, and are not a late-fee base. This section does not shift Landlord’s obligations under N.C. Gen. Stat. § 42-42 or impose liability on Tenant to the extent the loss is caused by Landlord’s negligence or willful or wanton misconduct.

16. DAMAGE TO PREMISES. In the event the Premises are destroyed or rendered wholly uninhabitable by fire, storm, earthquake, or other casualty not caused by the negligence of Tenant, this Agreement shall terminate from such time except for the purpose of enforcing rights that may have then accrued hereunder. The rental provided for herein shall then be accounted for by and between Landlord and Tenant up to the time of such injury or destruction of the Premises, Tenant paying rentals up to such date and Landlord refunding rentals collected beyond such date. Should a portion of the Premises thereby be rendered uninhabitable, the Landlord shall have the option of either repairing such injured or damaged portion or terminating this Agreement. In the event that Landlord exercises its right to repair such uninhabitable portion, the rental shall abate in the proportion that the injured parts bears to the whole Premises, and such part so injured shall be restored by Landlord as speedily as practicable, after which the full Rent shall recommence and the Agreement continue according to its terms.

17. RIGHT OF ENTRY. Landlord and Landlord’s agents shall have the right at all reasonable times during the term of this Agreement and any renewal thereof to enter the Premises for the purpose of inspecting the Premises and all buildings and improvements thereon and for the purposes of dealing with any emergencies or making any repairs, additions or alterations as may be deemed appropriate by Landlord for the preservation of the Premises or the building. Landlord and its agents shall further have the right to exhibit the Premises and to display the usual “for sale”, “for rent” or “vacancy” signs on the Premises at any time before the expiration of this Agreement. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions that do not conform to this Agreement or to any restrictions, rules or regulations affecting the Premises.

18. SUBORDINATION OF LEASE. This Agreement and Tenant’s interest hereunder are and shall be subordinate, junior and inferior to any and all mortgages, liens or encumbrances now or hereafter placed on the Premises by Landlord, all advances made under any such mortgages, liens or encumbrances (including, but not limited to, future advances), the interest payable on such mortgages, liens or encumbrances and any and all renewals, extensions or modifications of such mortgages, liens or encumbrances.

19. TENANT’S HOLD OVER. If Tenant remains in possession of the Premises with the consent of Landlord after the natural expiration of this Agreement, a new tenancy from month-to-month shall be created between Landlord and Tenant which shall be subject to all of the terms and conditions hereof except that Rent shall then be due and owing at the Holdover Monthly Rent stated in the Data Schedule (or, if none is stated, the Monthly Rent) per month and except that such tenancy shall be terminable by the written notice specified in section 1(b) (N.C. Gen. Stat. § 42-14). If Tenant remains in possession after the expiration or termination of this Agreement without Landlord’s written consent, no new tenancy is created; Tenant is a tenant at sufferance subject to removal under N.C. Gen. Stat. § 42-26(a)(1), and Tenant shall pay, as the agreed rental value of the Premises for the holdover period, the Holdover Monthly Rent stated in the Data Schedule (or, if none is stated, the Monthly Rent), prorated daily, together with all other damages caused by the holdover. Landlord’s acceptance of any such payment does not create a tenancy or waive Landlord’s right to possession.

20. SURRENDER OF PREMISES. Upon the expiration of the term hereof, Tenant shall surrender the Premises in as good a state and condition as they were at the commencement of this Agreement, reasonable use and wear and tear thereof and damages by the elements excepted.

21. ANIMALS. Tenant shall be entitled to keep no more than _____ (_____) domestic dogs, cats or birds on the Premises; however, before any such animal is kept on the Premises, Tenant shall pay to Landlord (i) the refundable pet deposit, if any, stated in the Data Schedule, which is counted within the security-deposit maximum of N.C. Gen. Stat. § 42-51(b) and is held and accounted for as part of the Security Deposit, and (ii) the reasonable, nonrefundable pet fee, if any, stated in the Data Schedule, as authorized by N.C. Gen. Stat. § 42-53. The pet fee is earned by Landlord when paid, is not a security deposit, is not subject to accounting, and does not limit Landlord’s right to recover from the Security Deposit or from Tenant the full cost of cleaning, deodorizing, and repairing any animal-related soiling or damage. Tenant is liable for all damage and injury caused by any animal kept or permitted on the Premises by Tenant, including a service or assistance animal. A service animal or assistance animal kept as a reasonable accommodation under applicable fair-housing law is not a pet, and no pet deposit or pet fee shall be charged for such an animal.

22. QUIET ENJOYMENT. Tenant, upon payment of all of the sums referred to herein as being payable by Tenant and Tenant’s performance of all Tenant’s agreements contained herein and Tenant’s observance of all rules and regulations, shall and may peacefully and quietly have, hold and enjoy said Premises for the term hereof.

23. INDEMNIFICATION. EXCEPT TO THE EXTENT OF DAMAGE OR INJURY CAUSED BY LANDLORD’S NEGLIGENCE, WILLFUL OR WANTON MISCONDUCT, OR BREACH OF LANDLORD’S DUTIES UNDER N.C. GEN. STAT. § 42-42(a), LANDLORD WILL NOT BE HELD LIABLE FOR ANY DAMAGE OR INJURY TO THE TENANT, THEIR FAMILY, GUESTS, INVITEES, AGENTS, OR EMPLOYEES, OR ANY OTHER PERSON ENTERING THE PREMISES OR ANY BUILDING ON THE PREMISES, OR FOR DAMAGE OR INJURY TO GOODS OR EQUIPMENT ON THE PROPERTY. TENANT AGREES TO INDEMNIFY, DEFEND AND HOLD LANDLORD HARMLESS FROM ALL CLAIMS OR ASSERTIONS OF EVERY KIND AND NATURE ARISING FROM THE ACTS OR OMISSIONS OF TENANT, TENANT’S FAMILY, GUESTS, INVITEES, OR AGENTS, OR OF ANY ANIMAL KEPT OR PERMITTED ON THE PREMISES BY TENANT, INCLUDING BUT NOT LIMITED TO ANY DAMAGE OR INJURY CAUSED BY CONTACT, ATTACK, OR INTERACTION WITH ANY ANIMALS, DOMESTIC OR WILD, AND ANY DAMAGE OR INJURY ATTRIBUTED TO ANY ABSENCE OR FAILURE OF FENCING ON OR SURROUNDING THE PREMISES, EXCEPT IN EACH CASE TO THE EXTENT CAUSED BY LANDLORD’S NEGLIGENCE, WILLFUL OR WANTON MISCONDUCT, OR BREACH OF LANDLORD’S DUTIES UNDER N.C. GEN. STAT. § 42-42(a).

24. RENTAL APPLICATION. If Tenant completed a Rental Application in connection with this Agreement, Tenant acknowledges that Landlord relied on the information provided in the Rental Application when entering into this Agreement. Tenant warrants that the application information is accurate to Tenant's best knowledge. Any material misrepresentation or omission in the Rental Application is a material, non-curable breach of this Agreement; Landlord may terminate this Agreement on written notice without the cure period in the DEFAULT section, recover possession through summary ejectment under Article 3 of Chapter 42, and recover all resulting damages.

25. DEFAULT. Landlord shall have the option, in addition to any other legal rights and remedies, to terminate this Agreement or to terminate Tenant’s right to possession of the Premises without terminating the Agreement, if Tenant breaches this Agreement: (i) by failing to perform any obligation agreed upon in this Agreement, other than the covenant to pay Rent, or as required by law, and such failure to perform persists for five (5) calendar days after Landlord provides written notice to Tenant; or (ii) by failing to pay all past-due Monthly Rent within ten (10) days after Landlord or Landlord’s agent makes demand on Tenant for all past-due Rent, upon which failure a forfeiture of the term is implied under N.C. Gen. Stat. § 42-3 and Tenant’s estate shall cease according to the stipulations of this Agreement (N.C. Gen. Stat. § 42-26(a)(2)).

Landlord’s Right to Immediate Possession. If Landlord elects to terminate this Agreement or terminate the Tenant’s right of possession without terminating this Agreement, the Landlord is immediately entitled to possession of the Premises, and the Tenant must surrender it peacefully upon demand. If Tenant fails to do so, Landlord shall regain possession through a summary ejectment proceeding in accordance with Article 3 of Chapter 42 of the North Carolina General Statutes. Landlord shall not use self-help, including changing locks, shutting off utilities, or removing Tenant’s property, to obtain possession (Article 2A of Chapter 42 of the North Carolina General Statutes).

Landlord’s Right to Fee Recovery. If a legal action for eviction is initiated against Tenant in the form of a summary ejectment proceeding, then, pursuant to this written lease and N.C. Gen. Stat. § 42-46, Landlord is entitled to recover from Tenant: (i) an administrative complaint-filing fee not to exceed the greater of fifteen dollars ($15.00) or five percent (5%) of the Monthly Rent, an administrative court-appearance fee of ten percent (10%) of the Monthly Rent, or a second-trial fee not to exceed twelve percent (12%) of the Monthly Rent, in each case subject to the conditions of subsections (e) through (g) of N.C. Gen. Stat. § 42-46, and provided that only one such administrative fee may be charged and retained for a complaint; (ii) out-of-pocket expenses and litigation costs permitted by N.C. Gen. Stat. § 42-46(i), including filing fees charged by the court, costs for service of process, and reasonable attorneys’ fees actually paid or owed, pursuant to a written lease, not to exceed fifteen percent (15%) of the amount owed by Tenant, or fifteen percent (15%) of the Monthly Rent stated in this Agreement if the eviction is based on a default other than the nonpayment of Rent; and (iii) if Tenant appeals a summary ejectment judgment to district court and Landlord is the prevailing party, all actual reasonable attorneys’ fees paid or owed by Landlord if the court determines that Tenant knew or should have known the appeal was frivolous, unreasonable, without foundation, in bad faith, or solely for the purpose of delay (N.C. Gen. Stat. § 42-46(i)(5)).

Landlord's Acceptance of Partial Rent. If Landlord accepts partial Rent or a partial housing subsidy, such acceptance will not waive Tenant’s breach of the Agreement or restrict Landlord’s right to initiate an eviction through summary ejectment, irrespective of whether the action is filed before or after the acceptance of any partial payment.

Landlord's Termination of the Agreement. Upon Landlord’s termination of this Agreement, Tenant’s right of possession shall end. Landlord may recover all unpaid Monthly Rent and other sums accrued through the termination date, plus damages caused by the breach, including the remaining Monthly Rent for the rest of the stated term less sums actually received from reletting after costs of reletting, and damages from Tenant’s unauthorized occupancy after termination. This paragraph does not limit Landlord’s option instead to terminate only Tenant’s right of possession under the following paragraph.

Landlord's Termination of Tenant’s Right of Possession. If Landlord terminates Tenant’s right of possession without terminating this Agreement, Tenant shall remain responsible for fulfilling all obligations under this Agreement. After Tenant vacates or Landlord recovers possession of the Premises, Landlord shall make a reasonable effort to re-lease the Premises on behalf of Tenant, without any fixed deadline for or guarantee of re-leasing. Any Rent received from the re-leasing shall first be applied to the costs of re-leasing the Premises, and then to the Rent owed under this Agreement. If Rent received from re-leasing is not enough to satisfy the full amount of Rent owed, Tenant shall be responsible for any outstanding balance.

26. LATE CHARGE. In the event that any Monthly Rent payment is five (5) calendar days or more late, the first day being the day after the Monthly Rent was due, Tenant shall pay to Landlord, in addition to the overdue payment, a Late Charge in the amount stated in the Data Schedule (the greater of fifteen dollars ($15.00) or five percent (5%) of the Monthly Rent) (N.C. Gen. Stat. § 42-46(a)). A Late Charge may be imposed only one time for each late Monthly Rent payment, and a Late Charge for a specific late Monthly Rent payment shall not be deducted from a subsequent Monthly Rent payment so as to cause the subsequent payment to be in default (N.C. Gen. Stat. § 42-46(b)). No Late Charge shall be imposed because of Tenant’s failure to pay for water or sewer services provided pursuant to N.C. Gen. Stat. § 62-110(g) (N.C. Gen. Stat. § 42-46(d)).

27. ABANDONMENT. If at any time during the term of this Agreement Tenant abandons the Premises or any part thereof, Landlord may, at Landlord’s option, obtain possession of the Premises in the manner provided by law, and without becoming liable to Tenant for damages or for any payment of any kind whatever. Landlord may, at Landlord’s discretion, as agent for Tenant, relet the Premises, or any part thereof, for the whole or any part of the then unexpired term, and may receive and collect all Rent payable by virtue of such reletting, and, at Landlord’s option, hold Tenant liable for any difference between the Rent that would have been payable under this Agreement during the balance of the unexpired term, if this Agreement had continued in force, and the net Rent for such period realized by Landlord by means of such reletting. Personal property Tenant leaves on the Premises shall be handled only as N.C. Gen. Stat. §§ 42-25.9(d), (g), and (h) and 42-36.2 provide. For purposes of the nonprofit-delivery alternative in § 42-25.9(d), personal property is deemed abandoned only if Landlord finds evidence that clearly shows the Premises were voluntarily vacated after the paid rental period expired and Landlord has no notice of a disability that caused the vacancy; a presumption of that abandonment arises ten (10) or more days after Landlord has posted conspicuously a notice of suspected abandonment both inside and outside the Premises and has received no response (N.C. Gen. Stat. § 42-25.9(e)). Those statutory routes include, as applicable: (i) delivery of property of seven hundred fifty dollars ($750.00) value or less to a qualifying nonprofit organization that agrees to identify, separately store, and release the property to Tenant at no charge within thirty (30) days, upon the notices § 42-25.9(d) requires (immediate posting at the Premises of the recipient’s name and address, posting of the same notice for thirty (30) days or more at the place where rent is received, and first-class mail to Tenant’s last known address, without describing the property); (ii) after Landlord is placed in lawful possession by execution of a writ of possession, a seven (7) day period during which Tenant may request release of the property, after which Landlord may throw away, dispose of, or sell the property as § 42-25.9(g) and § 42-36.2(b) provide; and (iii) where the total value of all property remaining at execution of the writ is less than five hundred dollars ($500.00), disposal five (5) days after execution (N.C. Gen. Stat. § 42-25.9(h)). Landlord shall have no liability to Tenant for the handling, storage, or disposition of such property undertaken in compliance with those statutory procedures.

28. FEDERAL PROVISIONS. Servicemembers: Nothing in this Agreement limits, conditions, or waives any right or protection of a servicemember under the Servicemembers Civil Relief Act, 50 U.S.C. § 3901 et seq., including the protections of 50 U.S.C. §§ 3951 and 3955, or under N.C. Gen. Stat. § 42-45. CARES Act: If the Premises is a “covered dwelling” under 15 U.S.C. § 9058, then, notwithstanding any other provision of this Agreement and regardless of the Schedule election, Landlord shall give Tenant at least thirty (30) days’ notice to vacate before requiring Tenant to surrender possession for nonpayment of Rent (15 U.S.C. § 9058(c)). The Schedule Yes/No prompt is an operational identification only and does not create or remove the federal requirement.

29. GOVERNING LAW. This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State of North Carolina.

30. SEVERABILITY. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.

31. BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.

32. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations of the Landlord or Tenant.

33. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular and plural.

34. NON-WAIVER. No indulgence, waiver, election or non-election by Landlord under this Agreement shall affect Tenant’s duties and liabilities hereunder. Landlord’s acceptance of Rent, in whole or in part, with knowledge of a breach does not waive the breach or any right of reentry reserved in this Agreement.

35. MODIFICATION. The parties hereby agree that this Agreement, including the Data Schedule and any attachments checked under ADDITIONAL PROVISIONS; DISCLOSURES, contains the entire agreement between the parties and this Agreement shall not be modified, changed, altered or amended in any way except through a written amendment signed by all of the parties hereto.

36. NOTICE. Any notice required or permitted under this Agreement, other than a notice or process for which North Carolina or federal law prescribes the manner of service, shall be deemed sufficiently given if delivered personally, sent by United States first-class mail, or sent by United States certified mail, return receipt requested, in each case addressed as stated in the Data Schedule, and shall be effective upon personal delivery or, if mailed, three (3) days after deposit in the United States mail, postage prepaid. A courtesy copy may also be sent by electronic mail, but notice by electronic mail alone is not effective. Notices and process for which the law prescribes the manner of service — including summary ejectment process under N.C. Gen. Stat. §§ 42-28 and 42-29 and security-deposit accountings under N.C. Gen. Stat. § 42-52 — shall be given by the method the law prescribes:

Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this section by written notice thereof to the other party.

A demand for past-due Rent under N.C. Gen. Stat. § 42-3 shall be in writing and given by one of the methods stated in this section other than electronic mail. The three-day mailing rule in this section does not shorten any statutory notice period; a mailed notice intended to satisfy N.C. Gen. Stat. § 42-14 must be mailed so that it is effective at least seven (7) days before the end of the rental period. Notices from Tenant to Landlord are effective only upon Landlord’s actual receipt.

37. ADDITIONAL PROVISIONS; DISCLOSURES.

_____

Attachments: Check exactly one of (i) or (ii), and check (iii) if applicable:

☐ (i) Lead-Based Paint Disclosure and EPA lead pamphlet acknowledgment (housing built before 1978 — required);

☐ (ii) housing built in 1978 or later (lead-based paint disclosure not applicable);

☐ (iii) other: _____.

The attachments checked above, if any, are incorporated into this Agreement. Do not check (ii) unless the construction year is known.