Consider a prepaid rental listing service that intends to relocate. When is the listing service required to provide notice of the new address and telephone number to its clients?
Audio Lesson
Duration: 2:54
Question & Answer
Review the question and all answer choices
As soon as practicable after the listing service gets settled in its new location.
A is incorrect because 'as soon as practicable' is too vague and doesn't meet the specific statutory requirement. The law mandates a precise timeframe (7 days) rather than a general standard of reasonableness.
No later than seven calendar days after the move has occurre
Before the move is to occur.
C is incorrect because the notice is required after the move has occurred, not before. Providing notice before the move would be impractical as the new address and telephone number wouldn't be known until after the relocation is complete.
c. Before the move is to occur. d. 60 days prior to the move.
D is incorrect because 60 days prior is the timeframe for notifying the DRE (Department of Real Estate), not clients. The question specifically asks about notice to clients, which has a different timeframe requirement.
Why is this correct?
B is correct because California Business and Professions Code Section 10147 specifically requires rental listing services to provide notice of new address and telephone number to clients within seven calendar days after a move has occurred. This precise timing ensures clients have updated contact information promptly after relocation.
Deep Analysis
AI-powered in-depth explanation of this concept
This question addresses a crucial aspect of real estate regulation that protects consumers in California. The concept of notice requirements for business changes is fundamental because it ensures clients maintain access to their real estate professionals and services. The question specifically targets prepaid rental listing services, which have unique regulatory requirements. The core concept involves understanding when and how a business must notify clients of changes. The correct answer requires knowledge of California's specific timing requirements (7 days post-move) rather than general principles. This question is challenging because it tests precise regulatory knowledge rather than broad concepts, and because option A seems reasonable but doesn't meet the specific legal requirement. Understanding this connects to broader real estate knowledge about consumer protection, agency relationships, and business operation regulations.
Knowledge Background
Essential context and foundational knowledge
California regulates prepaid rental listing services under the Business and Professions Code, specifically Sections 10140-10147. These regulations exist to protect consumers who pay in advance for services. The notice requirement ensures that clients can continue to contact their service provider after relocation. While the DRE requires 60 days' notice of business changes, clients must receive updated contact information within 7 days after the move. This distinction between regulatory requirements and client notification obligations is a common point of confusion in real estate practice.
MOVE-7: Move Occurred, Verify in 7 days
Remember that notice is required after the MOVE has occurred, and you have 7 days to comply. This acronym helps distinguish between pre-move and post-move timing requirements.
For notice timing questions, distinguish between DRE requirements (usually longer) and client notification requirements (often shorter). When the question specifically mentions clients, look for the shorter timeframe option.
Real World Application
How this concept applies in actual real estate practice
Imagine Sarah operates a prepaid rental listing service in California and has found larger office space. She moves her business operations on October 1st. Under California law, Sarah must notify all her clients of her new address and phone number by October 8th (7 calendar days after the move). If Sarah fails to provide this notice within the required timeframe, she could face disciplinary action from the DRE and potential liability to clients who couldn't contact her due to outdated information. This scenario highlights why the timing is crucial for maintaining client relationships.
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