Commercial real estate in North Dakota is governed by the North Dakota Century Code (NDCC), enacted in 1961. While commercial leases enjoy broad "Freedom of Contract" under NDCC § 47-16-01, specific disclosures are required by law. Unlike states that force commercial landlords to provide extensive energy consumption or seismic risk disclosures, North Dakota's philosophy generally leaves due diligence to the tenant.

Importantly, the statutory protections and mandatory condition statements required for residential leases under NDCC § 47-16-07.2 do not apply to commercial tenancies. "Caveat Emptor" (Buyer/Renter Beware) is a guiding principle; however, landlords must still adhere to specific state and federal mandates.

1. Federal Lead-Based Paint (Mixed-Use Exception)

The federal Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d) and EPA regulations apply only to "target housing" (residential dwellings). These requirements do not apply to purely commercial properties or the commercial portions of a mixed-use building.

However, if a North Dakota commercial property contains any "target housing" components built prior to 1978 (such as a residential apartment above a retail space), the landlord must comply with EPA regulations strictly for the residential dwelling portion. For those specific units, the landlord must:

• Provide the tenant with the EPA’s "Protect Your Family From Lead In Your Home" pamphlet.
• Disclose any known records or reports of lead-based paint in the residential dwelling.
• Include a legally mandated "Lead Warning Statement" within the residential lease.

Failure to comply with these rules can result in significant EPA civil monetary penalties, which are adjusted annually for inflation and currently exceed $21,857 per violation (as of 2024/2025).

2. Environmental Disclosures (Asbestos, USTs, and Methamphetamine)

North Dakota commercial property owners must navigate a combination of federal mandates and state-specific disclosure requirements regarding environmental hazards.

• Asbestos: Under Federal OSHA 29 CFR 1910.1001, owners of commercial buildings constructed before 1980 must disclose the presence and location of known or presumed asbestos-containing materials (ACM) to tenants and employees.
• Underground Storage Tanks (USTs): Owners must notify the North Dakota Department of Environmental Quality of the existence of USTs (NDCC § 23.1-04-08 & 40 CFR 280). While no specific state lease disclosure form exists, failure to disclose known leaking tanks to a tenant may constitute fraud under NDCC § 9-03-08.
• Methamphetamine Disclosure: Per NDCC § 47-10-27, in any real property transaction (including commercial sales), the seller must disclose in writing if they have knowledge that the property was used for the manufacture of methamphetamine.

3. Accessibility and the Americans with Disabilities Act (ADA)

While not a "disclosure form" signed by the tenant, defining accessibility compliance is a critical requirement within any North Dakota commercial lease.

Under Title III of the federal ADA, commercial spaces serving the public must be accessible to individuals with disabilities. North Dakota law (NDCC § 14-02.4-14) also prohibits discrimination in public accommodations, mirroring these accessibility requirements.

Because both the landlord (property owner) and the tenant (business operator) can be held liable for violations, the commercial lease should explicitly allocate responsibility for ADA and state accessibility compliance between the parties. This includes determining who assumes the financial and legal responsibility for making "readily achievable" structural modifications required by law.

Official Law Citation: This information is derived from Federal/State Environmental Law and NDCC Chapters 9-03, 14-02.4, 23.1-04, 47-10, and 47-16. For current statutes, visit North Dakota Century CodePreview unavailable.

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