| 13 | 13 | | A BILL TO BE ENTITLED 1 |
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| 14 | 14 | | AN ACT TO REQUIRE LANDLORDS TO PROVIDE NOTICE BEFORE IMPOSING 2 |
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| 15 | 15 | | CERTAIN FEES ON TENANTS. 3 |
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| 16 | 16 | | The General Assembly of North Carolina enacts: 4 |
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| 17 | 17 | | SECTION 1. G.S. 42-46 reads as rewritten: 5 |
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| 18 | 18 | | "§ 42-46. Authorized fees, costs, and expenses. 6 |
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| 19 | 19 | | (a) Late Fee. – In all residential rental agreements in which a definite time for the 7 |
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| 20 | 20 | | payment of the rent is fixed, the parties may agree to a late fee not inconsistent with the provisions 8 |
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| 21 | 21 | | of this subsection, to be chargeable only if any rental payment is five days or more late. If the 9 |
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| 22 | 22 | | rent: 10 |
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| 23 | 23 | | (1) Is due in monthly installments, a landlord may charge a late fee not to exceed 11 |
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| 24 | 24 | | fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is 12 |
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| 25 | 25 | | greater. 13 |
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| 26 | 26 | | (2) Is due in weekly installments, a landlord may charge a late fee not to exceed 14 |
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| 27 | 27 | | four dollars ($4.00) or five percent (5%) of the weekly rent, whichever is 15 |
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| 28 | 28 | | greater. 16 |
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| 29 | 29 | | (3) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and 17 |
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| 30 | 30 | | applicable to leases entered into on or after that date. 18 |
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| 31 | 31 | | (b) A late fee under subsection (a) of this section may be imposed only one time for each 19 |
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| 32 | 32 | | late rental payment. A late fee for a specific late rental payment may not be deducted from a 20 |
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| 33 | 33 | | subsequent rental payment so as to cause the subsequent rental payment to be in default. 21 |
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| 34 | 34 | | (b1) A late fee under subsection (a) of this section may only be collected by the lessor if 22 |
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| 35 | 35 | | the lessor provides written notice to the lessee prior to collecting the fee. The notice shall be 23 |
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| 36 | 36 | | delivered by hand, mail, or electronic means as agreed upon in the rental agreement. The notice 24 |
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| 37 | 37 | | shall inform the lessee that a late fee will be or has been assessed for a past due rental payment 25 |
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| 38 | 38 | | not received by the later of (i) five days after the due date specified in the rental agreement or (ii) 26 |
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| 39 | 39 | | the number of days after the due date specified in the rental agreement for imposing a late fee, 27 |
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| 40 | 40 | | provided that number is not less than five days. The notice shall specify the amount of the late 28 |
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| 41 | 41 | | fee and, if the fee has been assessed, the date it was imposed. 29 |
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| 42 | 42 | | …." 30 |
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| 43 | 43 | | SECTION 2. This act becomes effective October 1, 2025, and applies to late fees 31 |
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| 44 | 44 | | imposed on or after that date. 32 |
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