CAUTION: Recent developments in California have made representing Landlords and Tenants far more complicated with increased potential for Agent legal liability.
- In addition to local rent control ordinances, there is now the statewide “Tenant Protection Act” which, for covered properties and Tenants, places a cap on rent increases and requires “just cause” to evict a Tenant.
- The California Department of Employment and Fair Housing (“DFEH”) has issued sweeping new Fair Housing regulations which: (a) expand the number of protected classes to twenty-two (22); (b) broadens Agent liability for Fair Housing violations to include direct and indirect liability; (c) clarify the protections afforded individuals with “Assistance Animals;” (d) limit the use of criminal records in the Tenant application process; (e) includes in the definition of “hostile environment” potential liability for claims within the housing context; and (f) allows for stricter local laws and ordinances.
- In addition, there are “temporary” State, county and city laws placing moratoria on evictions and foreclosures as a result of the pandemic.
- Also, Tenants may claim an inability to pay rent or vacate the rented premises, or be unwilling to allow showing the rented premises, because of COVID-19 circumstances.
For these reasons, Agents are strongly encouraged to: (a) not provide any advice to Landlords and/or Tenants regarding any of the above issues; (b) not complete Tenant-related forms; and/or (c) deliver any forms or notices to Tenants regardless of who prepared the forms or notices. Instead, Agents should always refer their Landlord and Tenant clients to a qualified local Landlord/Tenant attorney for advice.
For further details regarding recent Landlord-Tenant issues and potential problems for real estate professionals, see the following Weekly Practice Tips:
“New Landlord-Tenant Laws for 2020” (1/10/2020)
“Rent Cap and Just Cause Eviction” ??
“New Interpretation for a Dwelling Unit” (6/12/2020)
“California’s New Fair Housing Regulations –Protected Classes” (02/14/2020)
“California’s New Fair Housing Regulations – Assistance Animals” (02/28/2020) and
“California’s New Fair Housing Regulations – Criminal Records” (03/06/2020)
REVISED LANDLORD/TENANT FORMS
None of the prior versions of the five revised forms can be used, except for possibly the revised PRQ, but the new version of that form is preferred.
- NOTICE TO PAY RENT OR QUIT (PRQ)
This form was changed to make clear that in counting any of the “3 Days” to pay rent or quit, Saturdays, Sundays and judicial holidays are excluded.
NOTE: THE FOLLOWING FOUR (4) FORMS HAVE ALL BEEN MODIFIED IN THE FOLLOWING TWO RESPECTS: (a) These forms can now be used for all rental properties regardless of whether they are or are not covered under the Tenant Protection Act; and (b) each form has expanded the “Notice of Delivery/Proof of Service” section. Additional modifications have been made on the individual forms as indicated below:
- NOTICE OF CHANGE OF TERMS OF TENANCY (CTT)
This form now includes separate sections for rent increases for those properties covered under the Tenant Protection Act and those not covered under that Act.
- NOTICE TO QUIT (NTQ)
This form now contains a provision for an occupant holding over after the tenancy was terminated by the Owner, and it provides the reasons to terminate after a Notice to Cure under the Tenant Protection Act.
- NOTICE OF TERMINATION OF TENANCY (NTT)
A separate section for termination that is allowed under the Tenant Protection Act has been added along with those reasons that are allowed under that Act. The form now provides information about the Tenant Protection Act and about using, as necessary, three other CAR forms: PRQ, PCQ and NTQ.
5. NOTICE TO PERFORM OR CURE COVENANT OR QUIT (PCQ)
This form was modified to comply with the Tenant Protection Act that requires Landlords to give a Notice to Cure that contains a valid reason allowed under that Act.
WEEKLY PRACTICE TIP: DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2020 07/3/20