BP Lease Clarification - Fees for Complaint for Summary Ejectment

[Brad Collins]

Hello BP,

I have opted to use the Bigger Pockets lease agreement on my first rental property. I have been reviewing the lease thoroughly and there is one paragraph I don't exactly understand. It goes as follows: 

FEES FOR COMPLAINT FOR SUMMARY EJECTMENT AND OR MONEY OWED: In the event that Landlord determines it is necessary to file an action for summary ejectment and/or money owed, Tenant shall be responsible for the associated costs. Landlord may only charge one of the following fees against Tenant.

1. COMPLAINT FILING FEE: $ _______________________ OR ________% of rental payment, whichever is greater, and North Carolina law provides that no late fee for a Residential lease shall exceed fifteen ($15) dollars or five (5%) percent of the rental payment, whichever is greater; OR

1. COURT APPEARANCE FEE: __________________% of rental payment, and North Carolina law provides that landlord may charge a court-appearance fee in an amount equal to ten percent (10%) of the monthly rental payment.

1. SECOND TRIAL FEE: __________________% of rental payment, and North Carolina law provides that landlord may charge a second court-appearance fee in an amount equal to ten percent (10%) of the monthly rental payment.

So if I understand correctly, in the event I have to evict a tenant, I can only charge one of the fees listed above? If I put the maximum (5%, 10%, & 10% respectively), how in the world will I know which one to charge? Seems like they are effectively the same...

Also, the language seems a little redundant. Do I need the part that says "... and North Carolina law provides... ...equal to ten percent of the monthly rental payment."

Any reading you can point me towards would be much appreciated! Also... I learn well by examples... can someone help spell this out a bit better for me?

Thanks in advance!

-Brad

[Stephen Diakos]

Afternoon Brad, 

I've never used the BP lease but will definitely have to take a look. 

Check out the link below. Items E, F, and G discuss the items above but give additional qualifying information as to which fee you can charge in which scenario.

https://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_42/GS_42-46.html

(e) Complaint-Filing Fee. - Pursuant to a written lease, a landlord may charge a complaint-filing fee not to exceed fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is greater, only if the tenant was in default of the lease, the landlord filed and served a complaint for summary ejectment and/or money owed, the tenant cured the default or claim, and the landlord dismissed the complaint prior to judgment. The landlord can include this fee in the amount required to cure the default.

(f) Court-Appearance Fee. - Pursuant to a written lease, a landlord may charge a court-appearance fee in an amount equal to ten percent (10%) of the monthly rent only if the tenant was in default of the lease and the landlord filed, served, and prosecuted successfully a complaint for summary ejectment and/or monies owed in the small claims court. If the tenant appeals the judgment of the magistrate, and the magistrate's judgment is vacated, any fee awarded by a magistrate to the landlord under this subsection shall be vacated.

(g) Second Trial Fee. - Pursuant to a written lease, a landlord may charge a second trial fee for a new trial following an appeal from the judgment of a magistrate. To qualify for the fee, the landlord must prove that the tenant was in default of the lease and the landlord prevailed. The landlord's fee may not exceed twelve percent (12%) of the monthly rent in the lease.

Hopefully that helps.

Thanks