A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.

If the tenant (the business occupying the space) who signs a commercial lease agreement fails to pay the rent on time, the landlord may have the right to charge late fees, terminate the lease, and lock the commercial tenant out of the space by changing the locks.

A commercial landlord’s ability to charge late fees generally depends on the specific language in the written lease agreement and the state's contract law.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who charges late fees because the tenant is an hour late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing—unless, for example, the lease agreement specifies an hour (12:00 p.m.) of the day by which rent is due and states that time is of the essence.

In North Carolina, a business that leases commercial space such as offices, warehouses, or retail locations is typically required to enter into a commercial lease agreement. This agreement outlines the terms and conditions of the lease, including the payment of rent. If a tenant fails to pay rent on time, the landlord may impose late fees, terminate the lease, or lock the tenant out, depending on the provisions of the lease agreement. North Carolina law allows landlords to charge late fees as long as they are reasonable and do not exceed $15 or 5% of the rental payment, whichever is greater, and are stipulated in the lease agreement. Additionally, the landlord must wait at least five days after the rent is due before imposing the fee. The concept of an implied duty of good faith and fair dealing is recognized in North Carolina, which means that both parties are expected to act honestly and fairly in the performance of the contract. A landlord's actions, such as charging excessive late fees or locking out a tenant for a minor delay in rent payment, could potentially breach this duty if not clearly justified by the lease terms. It is important for both landlords and tenants to understand their rights and obligations under the lease agreement and North Carolina law.