May 19th, 2025 at 2:27 pm
Fact Pattern: A landlord and tenant have entered into a C.A.R. Residential Lease Agreement (RLMM). The monthly rent will be $6,000 per month payable on the first day of each calendar month. The lease term will begin on June 21, 2025. The maximum security deposit that this particular landlord can charge is $6,000.
Multiple Choice Question: Which of the following is this landlord allowed to charge the tenant upfront before commencement of the lease? Pick the best answer:
A. $14,000 total, which will be broken down to $8,000 for the rent owed from June 21, 2025 to July 31, 2025, plus $6,000 as a security deposit.
B. $12,000 total, which will be broken down to $6,000 for the first month of rent owed from June 21, 2025 to July 20, 2025, plus $6,000 as a security deposit.
C. $12,000 total, which will be broken down to $8,000 for the rent owed from June 21, 2025 to July 31, 2025, plus $4,000 as a security deposit.
D. All of the above.
E. Both B and C. (more…)
May 12th, 2025 at 3:14 pm
Fact Pattern: You are a lease listing agent for a residential property using C.A.R.’s Lease Listing Agreement. The landlord insists on collecting 2 months of rent as a security deposit.
Yet, as of July 1, 2024, the maximum security deposit for a new residential lease is generally limited to only one month of rent (furnished or unfurnished). However, an exception allowing 2 months is available if all 3 of the following requirements are met: (1) The landlord is a natural person; an LLC in which all members/owners are natural persons; or a family trust as defined; (2) The landlord owns no more than 2 residential rental properties with a collective total of no more than 4 dwelling units offered for rent; and (3) The tenant is not an active military service member.
Multiple Choice Question: Are you, as the listing agent, obligated to confirm that the landlord meets the 3 requirements to fall under the 2-month exception? Pick the best answer:
A. Yes.
B. Yes, if the landlord delegates that responsibility to you.
C. No.
D. It depends. (more…)
May 5th, 2025 at 6:29 pm
Fact Pattern: You are a buyer’s agent with a C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). The “Property Type” on your BRBC is solely for the specific property located at 123 Elm Street in Any City, California. The buyer enters into a contract to purchase the Elm Street property. Unfortunately, many issues come up during escrow, and the buyer is thinking about cancelling the purchase. To help decide, the buyer would like to go see a few other properties. You still have 2 months left on your BRBC representation period.
Multiple Choice Question: Should you modify your BRBC before showing other properties to the buyer? Pick the best answer:
A. Yes.
B. No, because touring other properties pertains to the purchase and/or cancellation of 123 Elm Street.
C. No, because you can wait until the buyer writes an offer for another property.
D. It depends on whether the other properties are listed in the MLS. (more…)
April 28th, 2025 at 3:44 pm
Fact Pattern: You are a buyer’s agent with a 3-month C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). The BRBC ends on May 20, 2025. There is no Continuation Period. Your buyer has entered into a purchase agreement that is scheduled to close escrow on June 10, 2025.
Multiple Choice Question: Should you extend the end date of your BRBC to include June 10, 2025? Pick the best answer:
A. Yes if you want the authority to represent the buyer.
B. Yes if you want an entitlement to compensation.
C. Both A and B.
D. No. (more…)
April 21st, 2025 at 2:30 pm
Fact Pattern: You are the buyer’s agent for a pending sales transaction using C.A.R.’s Residential Purchase Agreement (RPA). Your buyer has 17 days after acceptance to remove all contingencies other than the loan contingency, and 20 days to remove the loan contingency. On the 17th day after acceptance, the seller serves a Notice to Buyer to Perform (NBP) to remove all contingencies.
Multiple Choice Question: What must the buyer do to stop the seller from cancelling? Pick the best answer:
A. Remove all contingencies, including the loan contingency.
B. Remove all contingencies, except the loan contingency.
C. Nothing.
D. Inform the seller’s side that the NBP is defective. (more…)
