Under California's AB 1482 (Tenant Protection Act), all of the following properties are exempt from the statewide rent cap EXCEPT:
Correct Answer
A) A 20-unit apartment building constructed 18 years ago and owned by a corporate entity
A 20-unit apartment building that is 18 years old (more than 15 years) and owned by a corporate entity is NOT exempt from AB 1482. It is a covered property because it exceeds the 15-year age threshold and is not owner-occupied or owned by a natural person meeting the specific exemption criteria.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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