A California landlord rents a single-family home to a tenant on a one-year lease. The lease expires and the landlord proposes a 15% rent increase. The home was built in 1998, and the landlord did not include the AB 1482 single-family home exemption notice in the lease or deliver it separately to the tenant. Under California Civil Code §1947.12, which statement is correct?
Correct Answer
B) The property is subject to the AB 1482 rent cap because the landlord failed to provide the required notice of exemption, and the new construction exemption does not apply
Under California Civil Code §1947.12(d)(5), a single-family home is exempt from the AB 1482 rent cap only if the owner provides the tenant with written notice of the exemption — either in the lease or as a separate written notice. Without that notice, the exemption is not operative and the property is subject to the statewide rent cap of 5% plus local CPI (maximum 10% total). The home was built in 1998, making it more than 15 years old, so it does not qualify for the separate new construction exemption under §1947.12(d)(4), which applies only to properties built within the preceding 15 years. Because neither exemption applies, the proposed 15% increase exceeds the statutory cap and is unlawful.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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