A tenant in California rents a home and the landlord requires both a security deposit and 'last month's rent' upfront. Under AB 12 (effective July 2024), what is the maximum total the landlord may collect at move-in?
Correct Answer
C) First month's rent plus one month's security deposit
Under AB 12, the maximum security deposit is one month's rent. The statute defines 'security' broadly to include any advance payment beyond the first month's rent that is designed to secure the landlord's interests. Collecting 'last month's rent' in advance on top of a security deposit would effectively exceed the one-month security deposit cap. The landlord may collect first month's rent plus one month's security deposit at move-in.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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