A prospective tenant signs a contract with a California prepaid rental listing service and pays the fee in advance. Under the Real Estate Law, when must the service refund the entire fee?
Correct Answer
C) If it does not supply at least three then-available rentals meeting the contract's specifications within five days of signing
Business and Professions Code Section 10167.10 requires a prepaid rental listing service to refund the fee in full if, within five days after the contract is executed, it has not supplied the prospective tenant with at least three rental properties that are then available and meet the specifications stated in the contract, unless the tenant obtains a rental through the service. If the tenant instead finds housing independently or finds none at all, the service may retain a fifty-dollar service charge, provided the tenant demands the refund within ten days after the contract expires. The refund rights must be set out in the contract in bold capital letters, and a licensee who denies a refund in bad faith can be assessed damages of up to one thousand dollars.
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More Practice Of Real Estate Disclosures Questions
Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
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