A tenant in California rents an apartment for $3,200 per month. The local CPI increase is 6.2% for the year. Under AB 1482, what is the maximum the landlord can increase the monthly rent, and what is the new maximum monthly rent?
Correct Answer
B) Increase of $320, new rent $3,520
Under AB 1482, the maximum rent increase is 5% + CPI, capped at 10%. Here: 5% + 6.2% = 11.2%, which exceeds the 10% cap. Therefore, the maximum increase is capped at 10%. Calculation: $3,200 × 0.10 = $320. New maximum rent = $3,200 + $320 = $3,520.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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