| License Requirement 10167.2. It is unlawful for any person to engage in the business of a prepaid rental listing service unless licensed in that capacity or unless licensed as a real estate broker.
Contract Requirement 10167.9.
(a) Prior to the acceptance of a fee from a prospective tenant, a licensee shall provide the prospective tenant with a written contract which shall include at least the following:
(1) The name of the licensee and the addresses and telephone numbers of the principal office or location of the licensee and of the location, or branch office of a real estate broker, providing the listing to the prospective tenant.
(2) Acknowledgment of receipt of the fee, including the amount.
(3) A description of the service to be performed by the licensee, including significant conditions, restrictions, and limitations where applicable.
(4) The prospective tenant's specifications for the rental property, including, but not limited to:
(A) Type of structure, including, but not limited to, detached single-family home, apartment, or duplex.
(B) Location by commonly accepted residential area name, by designation of boundary streets, or by any other manner affording a reasonable means of identifying locations acceptable to the prospective tenant.
(C) Furnished or unfurnished.
(D) Number of bedrooms required.
(E) Maximum acceptable monthly rental.
(5) The contract expiration date, which shall not be later than 90 days from the date of execution of the contract.
(6) A clause setting forth the right to a full or partial refund of the fee paid in advance as provided in Section 10167.10.
(7) The signature of the licensee or of the designated agent, real estate salesperson, or employee acting on behalf of the licensee.
(8) A clause in bold type letters outlining the small claims court remedy available to the prospective tenant.
(b) The original of each such contract shall be retained by the licensee for a period of not less than six months from the date of termination of the contract during which time the contract shall be subject to examination by a duly authorized representative of the commissioner.
(c) The form of contract proposed to be used by a licensee to effect compliance with this section shall be filed with the department prior to use. Any modification of a form previously filed with the department, including a change in the name or business address of the licensee, shall also be filed prior to use. The department shall withhold the issuance or renewal of a license until the department has approved the contract.
(d) If a prospective tenant first contacts the licensee by telephone from a distance of more than 50 miles from the nearest office of the service, the licensee shall not be in violation of this section by taking credit card information from the prospective tenant by telephone for the purpose of charging the credit card account of the prospective tenant for the fee, if the licensee furnishes the information specified in subdivision (a) during the same telephone conversation and mails written confirmation and a list of available rental properties to the prospective tenant no later than the next business day.
Refund of Advance Fee 10167.10.
(a) (1) A licensee, other than a real estate broker, shall refund in full the advance fee paid by a prospective tenant if the licensee does not, within five days after execution of the contract, supply at least three rental properties then available to the prospective tenant and meeting the specifications of the contract.
(2) A licensee will be deemed to have supplied information meeting the specifications of the prospective tenant if the information supplied meets the contract specifications with reference to:
(i) type of structure;
(ii) designated area;
(iii) furnished or unfurnished;
(iv) number of bedrooms;
(v) maximum rental; and
(vi) any other specification expressly set forth in the contract.
A demand for the return of the fee shall be made by or on behalf of the prospective tenant within 10 days following the expiration of the five-day period referred to above by delivery or by mailing by registered or certified mail to the address of a location, or branch office of a real estate broker, set forth in the contract.
(b) A licensee shall refund any amount over and above the sum of a twenty-five dollar ($25) service charge to the prospective tenant if the prospective tenant obtains a rental other than through the services of the licensee during the term of the contract or does not obtain a rental, provided that the prospective tenant demands a return of that part of the fee within 10 days after the expiration of the contract. Within 10 days of receipt of such a demand by the prospective tenant, the licensee shall refund any amount over and above the sum of a twenty-five dollar ($25) service charge to the prospective tenant.
(c) Each contract, other than a contract employed by a licensee who is a real estate broker, shall contain provisions which shall read as follows unless different language shall have been approved in writing by the department prior to use:
RIGHT TO REFUND (Fullcaps, bold face or italicize) "If, within five days after payment of an advance fee, the licensee has not supplied the prospective tenant with at least three available rental properties meeting the specifications of the contract as to (i) type of structure; (ii) designated area; (iii) furnished or unfurnished; (iv) number of bedrooms; (v) maximum rental; and (vi) any other specification expressly set forth in the contract, the full amount of the fee paid shall be refunded to the prospective tenant upon presentation of evidence of such failure within 10 days after the expiration of the five-day period.
"If the prospective tenant obtains a rental other than through the services of the licensee during the term of this contract or if the prospective tenant does not obtain a rental through the services of the licensee during the term of the contract, the licensee shall refund the fee received in excess of a twenty-five dollar ($25) service charge to the prospective tenant within 10 days after receipt by the licensee of the demand for refund. To be entitled to a refund in excess of the service charge, the prospective tenant must mail or deliver the demand for refund not later than 10 days after expiration of this contract."
(d) Each contract employed by a real estate broker shall contain provisions which shall read as follows, unless different language shall have been approved in writing by the department prior to its use:
RIGHT TO REFUND (Full caps, bold face or italicize) "If the prospective tenant obtains a rental other than through the services of the licensee during the term of this contract or if the prospective tenant does not obtain a rental through the services of the licensee during the term of the contract, the licensee shall refund the fee received in excess of a twenty-five dollar ($25) service charge to the prospective tenant within 10 days after receipt by the licensee of the demand for refund. To be entitled to a refund in excess of the service charge, the prospective tenant must mail or deliver the demand for refund not later than 10 days after expiration of this contract."
(e) This section shall not apply to a person purchasing rental information for a purpose other than that of locating a rental unit for personal use or the use of a designated person. The contract shall so provide and shall be initialed by the customer.
(f) If the licensee fails to make a refund as provided in this section and if the denial or delay in making the refund is found to have been done in bad faith, a court of appropriate jurisdiction, including a small claims court, shall be empowered to award damages to the plaintiff in an amount not to exceed five hundred dollars ($500) in addition to actual damages sustained by the plaintiff. If the licensee refuses or is unable to pay the damages awarded by the court, the award may be satisfied out of the security required under Section 10167.7.
Violations 10167.11. It shall be a violation of this article for any licensee or any employee or agent of a licensee to do the following:
(a) Make, or cause to be made, any false, misleading, or deceptive advertisements or representations concerning the services that the licensee will provide to prospective tenants.
(b) Refer a property to a prospective tenant knowing or having reason to know that:
(1) The property does not exist or is unavailable for tenancy.
(2) The property has been described or advertised by or on behalf of the licensee in a false, misleading, or deceptive manner.
(3) The licensee has not confirmed the availability of the property for tenancy during the four-day period immediately preceding dissemination of the listing information. However, it shall not be a violation to refer a property to a prospective tenant during a period of from five to seven days after the most recent confirmation of the availability of the property for rental if the licensee has made a good faith effort to confirm availability within the stated four-day period, and if the most recent date of confirmation of availability is set forth in the referral.
(4) The licensee has not obtained written or oral permission to list the property from the property owner, manager, or other authorized agent. |
