Civil Code

Part 9 of 20 · provisions 1,601–1,800

This section names the act the Civil Code of the State of California and says it is divided into four parts.

Jurisdiction: United States — California
Instrument: Code
Citation: CIV
Version: Undated source snapshot
Language: en
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Occupancy can create title, but that title is subject to listed superior claims and does not by itself let the occupant bring or keep a quiet title action unless prescription has matured the title. Occupancy for the time required by the Code of Civil Procedure can create title by prescription, except for property dedicated to public use or owned by the state or a public entity. A use of land does not become a prescriptive easement if the owner posts notice signs at each entrance or every 200 feet along the boundary. Public use of private property does not create a permanent vested right unless there is an express written irrevocable offer of dedication that is accepted as required; special rules apply to certain coastal property. A person who in good faith and by mistake affixes improvements to another’s land may remove them, but must pay damages as required.

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Provisions of Civil Code

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1917.134.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )
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A refinancing loan’s terms and conditions are governed by the loan laws in effect on the refinancing date, except as this article provides otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.134. Except as provided in this article, the terms and conditions of the refinancing loan shall be subject to all laws applicable to loans in effect on the date of refinancing. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.135.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. )
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The borrower may obtain other financing instead of the refinancing described in Section 1917.133.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 3. Terms and Conditions [1917.130 - 1917.135] ( Article 3 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.135. Nothing in this chapter shall preclude the borrower from obtaining any other financing, in lieu of the refinancing provided for in Section 1917.133, including refinancing on other terms mutually agreeable to the borrower and lender. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.140.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. )
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A borrower may ask the lender to state the lender’s minimum fair market value estimate for the property, and the lender must respond within 10 working days.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.140. The borrower may, at any time for the purpose of facilitating a sale of the property, request the lender to stipulate the minimum amount which the lender considers to be the fair market value of the property for the purposes of this chapter. The lender shall advise the borrower within 10 working days of the receipt of such request of the lender’s estimate of the minimum fair market value. The estimate shall remain effective for purposes of this section for 90 days. For the purposes of this section and Section 1917.141, a sale of the property shall be deemed to have occurred within the 90-day period if there is a valid contract entered by an offer and acceptance within the 90-day period for the sale of the property. The lender’s stipulation shall remain effective for an additional 60 days following execution of the sale contract to permit completion of the sale and close of escrow. The lender shall not be liable to the borrower or any other party on account of damages alleged as a result of providing the stipulation or estimate required by this section if such stipulation or estimate is made in good faith. Evidence of lack of good faith shall include, but not be limited to, a showing that the lender has willfully or repeatedly overrepresented the fair market value of other properties in similar situations, applying equitable principles to those determinations. The lender shall be conclusively presumed to have acted in good faith and no action may be brought or maintained against a lender which arises out of the provision by the lender of such stipulation or estimate, if the lender relied upon an appraisal of an independent appraiser approved by the Federal National Mortgage Association. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.141.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. )
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This section sets how fair market value is determined for certain shared appreciation loan sales and related events.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.141. (a) In the case of a sale for cash within 90 days after the lender stipulates, under the provisions of Section 1917.140, a minimum amount which the lender considers to be the fair market value of the property, the fair market value shall be the gross sale price, unless the gross sales price is below the minimum amount stipulated by the lender and the lender contests in writing the reasonableness of the gross sale price in relation to the fair market value within 10 working days of the lender’s receipt of notice of the gross sale price from borrower, in which case fair market value shall be the greater of gross sale price or the amount determined under Section 1917.142. (b) In the case of a sale for cash where the borrower has not requested the lender under the provisions of Section 1917.140 to stipulate to the minimum amount which the lender considers to be the fair market value of the property or where the stipulated minimum amount was provided by the lender more than 90 days prior to the date of sale, fair market value shall be the gross sale price, unless lender contests in writing the reasonableness of the gross sale price in relation to the fair market value within 10 working days of the lender’s receipt of notice of the gross sale price from borrower, in which case fair market value shall be the greater of gross sale price or the amount determined under Section 1917.142. (c) In the case of a sale which includes consideration to the seller other than cash, fair market value shall be as determined under Section 1917.142. (d) In the case the shared appreciation loan is prepaid in full, or upon acceleration of the shared appreciation loan upon default, or upon maturity of the shared appreciation loan, fair market value shall be as determined under Section 1917.142. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.142.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. )
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This section sets how fair market value is determined for covered shared appreciation loans: usually by averaging two appraisals, with specific rules for who selects appraisers, who pays, and how damaged property is treated.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 4. Determination of Fair Market Value [1917.140 - 1917.142] ( Article 4 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.142. When Section 1917.141 requires the application of this section, the fair market value shall be determined as the average of two appraisals of the property performed as described in this section. If possible, the appraisals shall be based on the sale prices of comparable properties in the market area sold within the preceding three-month period. The appraisals shall be made upon request of the lender by two independent residential appraisers, one to be selected by the lender and one by the borrower. Each appraiser shall be approved by the Federal National Mortgage Association. The cost of the appraiser selected by the lender shall be borne by the lender, and the cost of the appraiser selected by the borrower shall be borne by the borrower, unless the average of the two appraisals equals or is less than the gross sale price of the property, in which case the lender shall also pay the fee of the borrower’s appraiser up to two hundred dollars ($200). If either of the appraisers determines that the gross sale price does not reasonably reflect the fair market value of the property, or, in the case of a sale for which appraisal is required by this section, then the fair market value of the property shall be determined as the average of the two appraisals. If the borrower fails to select a qualified appraiser within 15 days after the lender has notified the borrower in writing of the lender’s request for an appraisal of the property, the reasons therefor, and the borrower’s option to select an independent appraiser within 15 days after the lender’s request is submitted to the borrower, the lender may designate the second appraiser, provided the lender’s request informs the borrower of this time limitation, and that the lender will select an appraiser on behalf of the borrower in the event the borrower fails to designate an appraiser, with consequent cost to the borrower. If pursuant to this section the lender designates the second appraiser, the cost of both appraisals shall be borne equally by the borrower and lender. If in any case the property has been damaged (other than normal wear and tear) and the damage has not been fully repaired, the determination of fair market value shall be based on the condition of the property not including the damage. Nothing in this section shall preclude the borrower and lender from establishing the fair market value of the property by mutual agreement in lieu of appraisals pursuant to this section. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.150.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 5. Improvements [1917.150 - 1917.151] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 12. )
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A borrower can add qualifying capital-improvement value to the property cost if this section’s procedures are followed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 5. Improvements [1917.150 - 1917.151] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.150. The borrower may have the value of capital improvements added to the borrower’s cost of the property, for purposes of determining net appreciated value and the amount of contingent deferred interest, but only if the procedures set forth in this article are followed. (a) Within 60 days following the completion of capital improvements during any 12-month period with a cost in excess of two thousand five hundred dollars ($2,500), the borrower shall send by first-class mail a notice of the completion of the improvements to the lender and shall submit proof of cost and an estimate of the increase in value of the property by reason of the improvements. (b) If, within 30 days of receipt of the notice, the lender questions the claimed increase in value of the property by reason of the improvements, the lender and the borrower may, by mutual agreement, establish the value of the capital improvements or the lender may require appraisal of the property. An appraisal shall be made to determine the increase in value of the property, if any, by reason of the improvements, by two appraisers selected in the same manner specified in Section 1917.142. If appraisals are performed, the increase in value resulting from the improvements for the purposes of this section, shall be one-half of the sum of the two appraisals. The cost of the appraiser selected by the borrower shall be borne by the borrower, and the cost of the appraiser selected by the lender shall be borne by the lender. (c) A credit for the value of capital improvements shall be provided if the increase in value of the property resulting therefrom is determined pursuant to subdivision (b) to exceed two thousand five hundred dollars ($2,500). (d) If 50 percent or more of the value of the labor or other work on the improvements was performed by the borrower, then the actual cost of the improvements need not exceed two thousand five hundred dollars ($2,500) for purposes of making application under subdivision (a). (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.151.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 5. Improvements [1917.150 - 1917.151] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 12. )
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A shared appreciation loan may give the borrower more credit for improvements than this article otherwise specifies, if the Article 7 disclosures are properly modified to accurately state the credit terms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 5. Improvements [1917.150 - 1917.151] ( Article 5 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.151. Nothing in this article shall preclude a shared appreciation loan from providing the borrower with a greater credit for improvements than specified in this article, provided the relevant disclosures required by Article 7 (commencing with Section 1917.170) are appropriately modified to accurately disclose the terms of the credit. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.160.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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For a shared appreciation loan, the borrower-lender relationship is treated as debtor and creditor and not as a joint venture, equity venture, partnership, or similar relationship.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.160. The relationship of the borrower and the lender, as to a shared appreciation loan, is that of debtor and creditor and shall not be, or be construed to be, a joint venture, equity venture, partnership, or other relationship. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.161.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A borrower cannot validly waive rights given by this chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.161. Any waiver of any right of a borrower under the provisions of this chapter shall be void and unenforceable. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.162.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A shared appreciation loan may include a clause allowing the lender to accelerate the loan when the property is sold, unless Section 2924.6 prevents it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.162. (a) Notwithstanding Section 711, a provision in a shared appreciation loan made pursuant to this chapter permitting the lender to accelerate the maturity date of the principal and accrued interest on the loan upon sale of the property shall be valid and enforceable against the borrower, except as may be precluded by Section 2924.6. (b) The Legislature finds and declares that potential exposure to liability for enforcement of a “due-on-sale” clause consistent with Section 711, as interpreted by the courts, makes use of such a provision impractical. Moreover, the additional risks to the lender inherent in shared appreciation financing are greater with longer loan terms (which are more desirable from the standpoint of housing affordability), but this risk is reduced with an enforceable “due-on-sale” clause. Therefore, in order to facilitate shared appreciation financing, it is necessary to establish the exception specified in subdivision (a). (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.163.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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This section says shared appreciation loans under this chapter must be consistent with the chapter, and the chapter does not reach certain other real-property financing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.163. This chapter facilitates the making of shared appreciation financing in this state which conforms to the provisions of this chapter. The terms and conditions of any shared appreciation loan made pursuant to this chapter shall be consistent with this chapter. This chapter does not, however, apply to or limit shared appreciation financing of real property of a type specified in Section 1917.130 that is made pursuant to other provisions of law, or which is not otherwise unlawful. Nothing in this chapter shall be construed to in any way affect shared appreciation financing of commercial property or residential property not meeting the criteria specified in Section 1917.130. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.164.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A shared appreciation loan is not subject to certain Civil Code and Financial Code provisions that limit variable or renegotiable interest rates or require specific security-instrument language.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.164. A shared appreciation loan shall not be subject to any provision of this code or the Financial Code which limits the interest rate or change of interest rate of variable interest rate or renegotiable interest instruments, or which requires particular language or provisions in security instruments securing variable or renegotiable rate obligations or in evidences of those debts. This section is declaratory of existing law. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.165.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A deed of trust securing a shared appreciation loan must cover the loan principal and all interest, including contingent deferred interest.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.165. The lien of a deed of trust securing a shared appreciation loan shall include and secure the principal amount of the shared appreciation loan, and all interest, whether accrued or to be accrued, including all amounts of contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.166.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A shared appreciation loan lien attaches when the deed of trust is recorded, and it has priority over later-recorded liens or encumbrances, subject to the stated exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.166. The lien of a shared appreciation loan, including the principal amount and all interest, whether accrued or to be accrued, and all amounts of contingent deferred interest, shall attach from the time of the recordation of the deed of trust securing the loan, and the lien, including the lien of the interest accrued or to be accrued and of the contingent deferred interest, shall have priority over any other lien or encumbrance affecting the property secured by the shared appreciation instrument, recorded after the time of recordation of the shared appreciation instrument. However, nothing in this section or Section 1917.165 shall preclude a junior lien or encumbrance subordinate to the obligation of the shared appreciation loan. In no case may a junior lien achieve priority over the lien securing the obligation of the shared appreciation loan, provided that nothing in this section shall be construed to supersede Section 8450. (Amended by Stats. 2010, Ch. 697, Sec. 11. (SB 189) Effective January 1, 2011. Amendment operative July 1, 2012, by Sec. 105 of Ch. 697. Section inoperative January 1, 1987 (as part of Chapter 5, comm. with Section 1917.110), pursuant to Stats. 1982, Ch. 466, Sec. 12.5.)
1917.167.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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A qualifying shared appreciation loan is not treated as usurious just because it includes contingent deferred interest.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.167. A shared appreciation loan which at origination bears a fixed interest rate complying with the usury provisions of Article XV of the California Constitution shall not be deemed to become usurious by reason of the payment of contingent deferred interest pursuant to this chapter. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.168.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. )
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Qualification requirements in specified Corporations Code sections do not apply to a shared appreciation loan when the Section 25100(p) exemption applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 6. General Provisions [1917.160 - 1917.168] ( Article 6 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.168. The qualification requirements of Sections 25110, 25120, and 25130 of the Corporations Code do not apply to a shared appreciation loan to the extent the exemption afforded by subdivision (p) of Section 25100 of that code is applicable. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.170.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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For shared appreciation loans, this section says the chapter’s disclosures are the state-law disclosures required, and a lender may add extra disclosures if they are not inconsistent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.170. (a) The disclosures made pursuant to this chapter, as required, shall be the only disclosures required to be made pursuant to state law for shared appreciation loans, notwithstanding any contrary provision applicable to loans not made under this chapter, except those, if any, that may be required by reason of the application of Division 1 (commencing with Section 25000) of the Corporations Code, or Chapter 1 (commencing with Section 11000) of Part 2 of Division 4 of the Business and Professions Code. However, a lender shall not be precluded from supplementing the disclosures required by this chapter with additional disclosures that are not inconsistent with the disclosures required by this chapter. (b) Whenever specific language is prescribed by this chapter, substantially the same language shall be utilized if possible, but reasonably equivalent language may be used to the extent necessary or appropriate to achieve a clearer or more accurate disclosure. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.171.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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Lenders offering shared appreciation loans must give prospective borrowers a written disclosure on the earlier of first written loan information or a loan application form.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.171. (a) Each lender offering shared appreciation loans shall furnish to a prospective borrower, on the earlier of the dates on which the lender first provides written information concerning shared appreciation loans from the lender or provides a loan application form to the prospective borrower, a written disclosure as provided in this section. (b) The disclosure shall be entitled “INFORMATION ABOUT THE (Name of Lender) SHARED APPRECIATION LOAN,” and shall describe the operation and effect of the shared appreciation loan including a brief summary of its terms and conditions, together with a statement consisting of substantially the following language, to the extent applicable to such loan: INFORMATION ABOUT THE (Name of Lender) SHARED APPRECIATION LOAN (Name of Lender) is pleased to offer you the opportunity to finance your home through a shared appreciation loan. Because the shared appreciation loan differs from the usual mortgage loan, the law requires that you have a detailed explanation of the special features of the loan before you apply. Before you sign your particular shared appreciation loan documents, you will receive more information about your particular shared appreciation loan, which you should read and understand before you sign the loan documents. The loan will bear a stated rate of interest which will be (percent) below the prevailing market interest rate. In exchange for a stated interest rate which is below the prevailing rate, you will be obligated to pay us additional interest later. This additional interest is called “contingent interest.” The loan will require a balloon payment at the end of the _____ year. Thus, if you do not sell the property before that time, you will need to refinance the loan at that time. Contingent Interest This loan provides that you, as borrower, must pay to us, as lender, as contingent interest, (percent) of the net appreciated value of the real property which secures the loan. This contingent interest is due and payable when the property is sold or transferred, when the loan is paid in full, upon any acceleration of the loan upon default, or at the end of the term of the loan, whichever first occurs. The dollar amount of contingent interest, if any, which you will be required to pay cannot be determined at this time. If the property does not appreciate, you will owe us nothing. The contingent interest will not become due if title to the property is transferred on your death to a spouse, or where a transfer results from a decree of dissolution of a marriage and a spouse becomes the sole owner. Your obligation to pay contingent interest will reduce the amount of the appreciation, if any, that you will realize on the property. This appreciation will not produce a real gain in your equity in the property, unless the appreciation rate exceeds the general inflation rate, but you will be required to pay a portion of the appreciation as contingent interest without regard to whether the appreciation has resulted in a real gain. When you sell or refinance your home, you normally will receive enough cash to pay the shared appreciation loan balance, accrued interest, prepayment charge (if applicable), contingent interest, and expenses of sale. However, if you sell with only a small downpayment, you may possibly not receive enough cash to pay the contingent interest, and, in that event, it will be necessary for you to provide cash from other funds. Calculating the Contingent Interest Contingent interest will be calculated as follows: FAIR MARKET VALUE OF THE PROPERTY (Sale price or apprasied value.) –(less) BORROWER’S COST OF THE PROPERTY (This amount includes certain costs paid by you incident to the purchase.) –(less) VALUE OF CAPITAL IMPROVEMENTS MADE BY YOU (Must exceed $2,500 in value. Must also exceed $2,500 in cost unless you perform more than 50% of the value of the labor or work on the improvement.) _(equals) NET APPRECIATED VALUE ×(times) ______ PERCENT OWED TO LENDER _(equals) TOTAL CONTINGENT INTEREST Determining Fair Market Value If you sell your property for cash before maturity of your shared appreciation loan, the gross sale price will be the fair market value of the property, unless appraisals are requested by us and the appraisals average more than the gross sale price. However, at your request, we also will tell you what we consider to be the fair market value of the property. If you sell for cash for a gross sale price that equals or exceeds that amount, the gross sale price will control and appraisals will not be needed. Fair market value is determined by appraisals in the event of sales involving a consideration other than cash, prepayment of the loan in full, or maturity of the loan. When appraisals are required, fair market value is determined by averaging two independent appraisals of the property. You may select one of the two appraisers from a list approved by the Federal National Mortgage Association. If appraisals are requested by us, we will provide you with full information on how to select an appraiser. In lieu of appraisals, we may establish fair market value at an agreed amount if an agreement can be reached between you and us. Determining Value of Capital Improvements Capital improvements with a value exceeding $2,500 (but no maintenance or repair costs) may be added to your cost of the property for the purpose of determining the net appreciated value, but only if the procedures set forth in the shared appreciation loan documents are followed. It is important to note that capital improvements completed and claimed in any 12-month period must add more than $2,500 in value to the property and must generally also cost more than $2,500. However, if you have performed at least half the value of the labor or other work involved, then the cost of the improvements will not be considered. The appraised value of the improvements will be the increase in the value of the property resulting from the improvements. You will receive no credit for minor or major repairs or for improvements that are not appraised at more than $2,500, but the lender will acquire a share of any resulting appreciation in the value of the property. Determining Net Appreciated Value We are entitled to receive __ percent of the net appreciated value of the property as contingent interest. As shown in the chart above, net appreciated value equals (1) the fair market value of the property at the time of the sale or appraisal, less (2) your cost of the property, less (3) the value of any capital improvements for which you are entitled to credit. Balloon Payment of Principal If you do not sell the property before the end of the term of this loan, you will need to refinance this loan at that time. The term of this loan is (duration) years. We [are not obligated to refinance either the unpaid balance of the loan or the contingent interest at that time; you alone will be responsible for obtaining refinancing] [will offer or arrange with another lender to refinance the outstanding obligation, including any contingent interest, at that time]. If you refinance this loan, your monthly payments may increase substantially if the property appreciates significantly or if the interest rate on the refinancing loan is much higher than today’s prevailing rates. In general, the more your property appreciates, the larger will be the amount of the contingent interest that you will have an obligation to pay or refinance. Your Right to Refinance This Loan (For loans with a refinancing obligation) If the property is not sold or transferred prior to the maturity of the loan, we will offer or arrange with another lender to refinance the outstanding obligation of the loan, including any contingent interest. The refinancing will be at the then prevailing interest rate. The terms of the refinancing loan will be like those of home loans offered at that time by banks or savings and loan associations. If at the time of refinancing, banks or savings and loan associations in this state offer loans of sufficient duration, you are assured that the combined length of your shared appreciation loan and refinancing loan will be at least 30 years. However, if loans of sufficient duration are not then offered by banks or savings and loan associations, you may elect any type and maturity of loan then offered by banks or savings and loan associations. We will not be permitted to look to the forecast of your income in offering or arranging for your refinancing loan. The interest rate and specific terms of any refinancing loan will be subject to then-prevailing market conditions. The interest rate and monthly payment upon refinancing cannot be determined at this time. They may be either more or less burdensome to you than the currently prevailing rates and terms. Tax Consequences (For all loans) USE OF THE SHARED APPRECIATION LOAN WILL HAVE INCOME TAX OR ESTATE PLANNING CONSEQUENCES WHICH WILL DEPEND UPON YOUR OWN FINANCIAL AND TAX SITUATION. FOR FURTHER INFORMATION, YOU ARE URGED TO CONSULT YOUR OWN ACCOUNTANT, ATTORNEY, OR OTHER FINANCIAL ADVISOR. THE QUESTIONS YOU SHOULD DISCUSS INCLUDE THE TAX DEDUCTIBILITY OF THE CONTINGENT INTEREST PAYMENT, YOUR RIGHT TO UTILIZE THAT DEDUCTION IN YEARS OTHER THAN THE YEAR IT IS PAID, AND THE EFFECT OF THE LOSS OF TAX BENEFITS BEFORE THAT TIME. Other Important Information (Here insert additional description, if necessary, of the operation and effect of the shared appreciation loan. The foregoing describes our shared appreciation loan, includes a summary of all of its important provisions, and informs you of some of the risks of a shared appreciation loan. If your loan application is accepted by us, we will provide you with more information about your particular shared appreciation loan, which will include a comparison with conventional mortgages, an illustration of the possible increase in your monthly payments upon refinancing, and other important information. Before you enter into a shared appreciation loan with us, we recommend that you and your attorney or tax accountant review the loan documents for the full text of all of the terms and conditions which will govern the loan. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.172.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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Lenders making shared appreciation loans must give the prospective borrower specified disclosures before the loan is completed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.172. (a) Each lender making a shared appreciation loan shall also furnish to the prospective borrower, prior to the consummation of the loan, the disclosures required by Subpart C of Federal Reserve Board Regulation Z (12 CFR Part 226), including 12 CFR Section 226.18(f), to the extent applicable to the transaction. (b) The disclosure made pursuant to subdivision (a) and Regulation Z shall be based on the fixed interest rate of the shared appreciation loan, and shall include a description of the shared appreciation feature, including (1) the conditions for its imposition, the time at which it would be collected, and the limitations on the lender’s share, as required by the Federal Reserve Board in the information published by the board in 46 Federal Register 20877-78 (April 7, 1981), and (2) the lender’s share of the net appreciated value and the prevailing interest rate as defined in Section 1917.120 of the Civil Code. (c) The disclosure made pursuant to subdivision (a) and Regulation Z shall be accompanied by (1) one or more transaction-specific examples of the operation and effect of the shared appreciation loan and (2) the following charts comparing the shared appreciation loan and a conventional loan made at the prevailing interest rate, and illustrating the possible increase in the monthly payments, and the possible annual percentage rate of finance charge, on the assumptions therein stated: Chart 1 CONVENTIONAL MORTGAGE AT ____% If the same loan balance were financed under a conventional, 30-year, fixed-rate, level-payment mortgage, your monthly payments would be: Years 1–30 $_______/mo. Chart 2 IF YOU REFINANCE THIS TRANSACTION AT ___% If your property appreciates at 10% per year, and if your loan balance (including contingent interest due) at the end of __ years is refinanced at __% (the prevailing market interest rate now), your monthly payments will be: Years 1–__ _____ Refinancing loan $_______/mo. _____ $_______/mo.* * Refinancing loan, assuming a conventional, 30-year, fixed-rate, level-payment mortgage. Other mortgage instruments, e.g., graduated-payment or shared-appreciation, if available, may result in lower payments. Chart 3 APR IF PROPERTY APPRECIATES AT 10% If your property appreciates at 10% per year, the total finance charge on your shared appreciation loan (including contingent interest) will equal $____, and the annual percentage rate of the total finance charge (including contingent interest) will equal ____%. (d) The disclosures required by subdivision (c) shall be separate from the disclosures required by Regulation Z, and may be presented in the document containing the disclosures required by Regulation Z or in one or more separate documents. (e) Except to the extent that this section requires disclosure of additional information not required by Regulation Z, compliance with the applicable credit disclosure requirements of Regulation Z shall constitute compliance with the requirements of this section. (f) The disclosure prescribed in Section 1917.171 shall be physically attached to the disclosures required by this section and Regulation Z at the time the Regulation Z disclosures are furnished to the borrower. (g) In the event federal law is amended so that this section is inconsistent therewith, the federal law shall prevail as to the disclosures required by this section. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.173.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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A lender making a shared appreciation loan must give the prospective borrower a disclosure statement before the loan is consummated.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.173. Each lender making a shared appreciation loan shall additionally furnish to the prospective borrower, prior to consummation of the loan, a statement containing the following information: IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN You are being offered a shared appreciation loan. Before you decide to accept this loan, read this statement, which is designed to provide important information you should consider. 1. Prevailing interest rate: __%. 2. Interest rate on this loan: __%. 3. Lender’s share of net appreciated value: __%. 4. Amount of this loan: $__. 5. Amount of the monthly payments: $__. 6. Term of this loan: __ years. 7. Amortization period on which payments are calculated: __ years. 8. Prepayment charge (if any): __. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.174.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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Shared appreciation loan documents must include a prominently formatted disclosure statement with specified information.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.174. Each deed of trust and evidence of debt executed in connection with a shared appreciation loan shall contain a statement, printed or written in a size equal to at least 12-point bold type, consisting of substantially the following language: “THIS IS A [DURATION] SHARED APPRECIATION LOAN. THE LENDER'S INTEREST INCLUDES [PERCENT] OF THE NET APPRECIATED VALUE OF THE PROPERTY. A BALLOON PAYMENT OF PRINCIPAL WILL BE REQUIRED. FOR FURTHER INFORMATION, READ THE FLYER ENTITLED " INFORMATION ABOUT THE [NAME OF LENDER] SHARED APPRECIATION LOAN. ”’ The notice required by this section shall be completed to state the terms of the shared appreciation loan and the lender’s share of the net appreciated value. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.175.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. )
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If a lender must disclose interest due on a shared appreciation loan, and contingent deferred interest is unknown, the lender may disclose that fact and the calculation method.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 5. Shared Appreciation Loans [1917.110 - 1917.175] ( Chapter 5 repealed and added by Stats. 1982, Ch. 466, Sec. 12. ) ## ARTICLE 7. Notices and Disclosures [1917.170 - 1917.175] ( Article 7 added by Stats. 1982, Ch. 466, Sec. 12. ) ## 1917.175. Where, pursuant to any provision of law, the lender is required to disclose the amount of interest due or to be due under a shared appreciation loan and the amount of contingent deferred interest due or to be due is not known, the lender may disclose that fact and specify in the disclosure the method for calculating contingent deferred interest. (Repealed and added by Stats. 1982, Ch. 466, Sec. 12. Inoperative January 1, 1987, by Stats. 1982, Ch. 466, Sec. 12.5.)
1917.210.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 6. Loans of E.R.I.S.A. Pension Funds [1917.210 - 1917.220] ( Chapter 6 added by Stats. 1983, Ch. 557, Sec. 2. )
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ERISA-subject pension funds and retirement systems do not need a license or certificate to provide funds for permitted loan transactions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 6. Loans of E.R.I.S.A. Pension Funds [1917.210 - 1917.220] ( Chapter 6 added by Stats. 1983, Ch. 557, Sec. 2. ) ## 1917.210. Each pension fund or retirement system which is subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406), shall not be required to obtain any license or certificate in order to provide funds for any type of loan transaction permitted by law. (Added by Stats. 1983, Ch. 557, Sec. 2.)
1917.220.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 6. Loans of E.R.I.S.A. Pension Funds [1917.210 - 1917.220] ( Chapter 6 added by Stats. 1983, Ch. 557, Sec. 2. )
Verify source ↗

Interest-rate restrictions do not apply to certain ERISA-covered pension funds and retirement systems.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 6. Loans of E.R.I.S.A. Pension Funds [1917.210 - 1917.220] ( Chapter 6 added by Stats. 1983, Ch. 557, Sec. 2. ) ## 1917.220. Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any obligation of, loan made by, or forbearance of, any pension fund or retirement system which is subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406). This section creates and authorizes pension funds or retirement systems subject to the Employee Retirement Income Security Act of 1974 (P.L. 93-406) as an exempt class of persons pursuant to Section 1 of Article XV of the Constitution. (Added by Stats. 1983, Ch. 557, Sec. 2.)
1917.320.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 1. Definitions [1917.320- 1917.320.] ( Article 1 added by Stats. 1984, Ch. 1701, Sec. 1. )
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This section defines key terms for shared appreciation loans for seniors and sets several limits on loan calculations and rates.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 1. Definitions [1917.320- 1917.320.] ( Article 1 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.320. For the purposes of this chapter: (a) “Actual contingent interest” means the lender’s appreciation share of the net appreciated amount. In no event, however, shall the rate of appreciation upon which actual contingent interest is calculated at the end of the loan term exceed 21/2 times the rate at which projected contingent interest had been calculated. (b) “Actual life expectancy” shall be calculated based upon actuarial tables for women only, regardless of the sex of the borrower, and acceptable to both the state and the insurance industry. (c) “Annuity base amount” means the projected loan amount less (1) the initial advance and (2) the projected contingent interest based on the reasonable appreciation rate used in calculating the projected loan amount. (d) “Borrower” means the recipient or recipients of a shared appreciation loan for seniors who is obligated by execution of a promissory note and who is at least 65 years of age. (e) “Borrower’s life expectancy” means the actual life expectancy of the borrower plus no more than five years. In the case of a loan executed by two borrowers, the actual life expectancy shall be based upon the youngest of the two. (f) “Cessation of occupancy” means the rental to a third party of the right of exclusive occupancy of the subject property, or the abandonment by all coborrowers of the property as his or her residence. (g) “Lender” means any corporation organized as a public benefit corporation pursuant to the Nonprofit Corporation Law (Part 2 (commencing with Section 5110), Div. 2, Title 1, Corp. C.). (h) “Lender’s appreciation share” means a proportion not to exceed 25 percent of the appreciation of the property securing the loan calculated in accordance with this chapter. (i) “Shared appreciation loan for seniors” means any loan made pursuant to this chapter upon the security of owner-occupied real property of a type specified in Section 1917.330, and in connection with which the lender has a right to receive a share of the appreciation in the value of the security property. “Shared appreciation loan” includes a deed of trust and any evidence of debt issued in connection with the loan. (j) “Maturity event” means the earliest of any of the following: (1) The death of the borrower. In the case of a married couple who are coborrowers, the death of the surviving spouse. (2) The date of sale. (3) The date a loan made pursuant to this chapter is refinanced or repaid in full. (4) Cessation of occupancy. (k) “Monthly annuity” means an amount paid in equal monthly installments to the borrower which, together with interest calculated at the stated rate, shall exhaust the annuity base amount during the borrower’s life expectancy. In the event that the calculated monthly annuity exceeds the cap or ceiling determined in accordance with this subdivision, the lender may limit the actual monthly annuity payment to an amount not lower than the cap. If the cap is imposed, the lender’s appreciation share shall be limited to 25 percent times the ratio between the actual capped monthly payment and the monthly payment calculated in accordance with the first sentence of this subdivision. For example, if the monthly payment calculated in the first sentence is five thousand dollars ($5,000), but the lender applies a two thousand five hundred dollar ($2,500) ceiling, the lender’s share of the home’s appreciation shall be likewise reduced by 50 percent. The minimum cap shall be two thousand five hundred dollars ($2,500) for loans made during the calendar year 1989. In subsequent calendar years, the minimum cap shall be two thousand five hundred dollars ($2,500) increased to reflect the proportional increase in the Consumer Price Index for the State of California, as determined by the United States Bureau of Labor Statistics, for the period from January 1, 1989, until the November monthly index figure for the year prior to the year in which the loan agreement is entered into. (l) “Net advance” means any lump-sum advance of funds by the lender to the borrower made at the time of the loan closing. Net advance shall not exceed 15 percent of the projected loan amount. (m) “Net appreciated value” means the difference between the fair market value of the property securing the loan at the time the loan is made and the fair market value of the property securing the loan at the time of the maturity event, less any credit for approved improvements made during the term of the loan. (n) “Prevailing rate” means the yield of a 30-year mortgage commitment for delivery within 30 days for a standard conventional fixed rate mortgage of the Federal Home Loan Mortgage Corporation. (o) “Projected contingent interest” means the lender’s appreciation share of the projected appreciation of the property securing the loan from the date of the loan until the end of the borrower’s life expectancy, using the same reasonable projection of annual appreciation used in determining the projected loan amount. (p) “Projected loan amount” means not less than 75 percent of the estimated fair market value of the borrower’s home at the end of the borrower’s life expectancy, calculated by applying to the fair market value a reasonable projection of appreciation over the borrower’s life expectancy based on a reasonable projected annual appreciation rate of the fair market value of the home. (q) “Sale” means any transfer of title to the property and includes the execution of an installment sale contract giving the purchaser a right to possess the property before transfer of title, refinancing, judicial sale on execution, or other legal process of foreclosure or trustee’s sale, but “sale” does not include a transfer specified in Section 2924.6 if any spouse to whom the property is transferred is also a coborrower. (r) “Stated interest rate” means a total interest rate of not more than four-fifths of the prevailing rate. (s) “Total loan obligation” means the net original loan and the sum total of all monthly annuity payments received by the borrower, with interest on all outstanding amounts calculated no more often than monthly at the stated interest rate, and actual contingent interest plus interest at the prevailing rate as disclosed to the borrower at the time the loan was entered into on all of the above amounts from the date of any maturity event until the outstanding loan obligation is repaid in full. In no event shall the total loan obligation exceed the actual fair market value of the home on the date of the maturity event. (Amended by Stats. 1988, Ch. 1406, Sec. 1.)
1917.330.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. )
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Lenders may make shared appreciation loans for seniors under this chapter, but the loans must refinance only owner-occupied dwelling units, with a limited exception for two- to four-unit dwellings.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.330. Lenders may make shared appreciation loans for seniors pursuant to this chapter for the refinancing of real property improved with one- to four-dwelling units, including structures ancillary to such dwelling units and including attached single-family dwelling units, single-family mobilehome units, residential condominium units, and dwelling units within a planned unit development. Shared appreciation loans shall be made to refinance only owner-occupied dwelling units, but in the case of two- to four-unit dwellings financed under this chapter, only one of the units need be owner-occupied. A dwelling unit shall be conclusively deemed to be owner-occupied for purposes of this chapter with respect to initial qualification for participation in the loan program if a borrower certifies in writing to the lender at the time the loan is made that he or she will occupy the property. Nothing contained herein shall be deemed or interpreted to restrict a lender from providing a shared appreciation loan based solely upon the value of the real property upon which the borrower’s dwelling is situated, secured only by that real property and not by the improvements thereon. In that case, the lender’s actual contingent interest, and any other necessary calculations, shall be based upon the land value alone, not taking into account any improvements thereon. This paragraph is declaratory of existing law. (Amended by Stats. 1988, Ch. 1406, Sec. 2.)
1917.331.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. )
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A lender making a shared appreciation loan for seniors may charge only limited origination-related fees, capped at $500, and may not charge prepaid interest.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.331. (a) A shared appreciation loan for seniors shall include all of the following: (1) The term of the loan shall be for an open-ended term, terminating upon the occurrence of a maturity event, or the failure of the borrower to meet the terms of a deed of trust granted by the borrower to the lender which are normally and customarily used by mortgage lenders in this state for loans secured by residential real property. However, if the maturity event is either cessation of occupancy of the property by the borrower or death of the borrower, the term shall be extended until the earlier of the sale or refinancing of the property or 12 months after the occurrence of the maturity event. (2) An initial advance, if desired by the borrower. (3) Monthly annuity payments which shall continue until the occurrence of a maturity event, or earlier termination in accordance with paragraph (1). (4) Interest on (2) and (3), calculated no more often than monthly at the stated interest rate. (5) Actual contingent interest. (6) Interest on paragraphs (2) to (5), inclusive, compounded no more often than monthly, from the date of a maturity event until the loan is repaid in full. (b) The loan shall be secured by a deed of trust on the real property financed. (c) The aggregate amount of any fee charged to the borrower by the lender for processing an application, preparing any necessary documents, obtaining a credit report, or any other costs incurred by the lender in connection with originating a shared appreciation loan for seniors shall not exceed five hundred dollars ($500). No prepaid interest shall be charged to the borrower. (Amended by Stats. 1988, Ch. 1406, Sec. 3.)
1917.332.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

Loan terms under this chapter cannot require a monthly annuity to be discontinued or terminated unless a maturity event occurs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.332. Any provision in any loan made pursuant to this chapter for the discontinuation or termination of a monthly annuity other than upon the occurrence of a maturity event is void and unenforceable. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.333.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. )
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The borrower has the right to prepay the loan obligation at any time, either in full or in part.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.333. (a) The borrower shall have the right to prepay, at any time, in full or in part, the total loan obligation. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.334.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. )
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Except as stated in this article, shared appreciation loan terms and conditions for seniors follow all loan laws in force when the loan is made.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 2. Terms and Conditions [1917.330 - 1917.334] ( Article 2 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.334. Except as provided in this article, the terms and conditions of the shared appreciation loan for seniors shall be subject to all laws applicable to loans in effect on the date the loan is made. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.410.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. )
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A borrower may ask the lender to state the minimum fair market value, and the lender must respond within 10 working days. The estimate is effective for 90 days, with a possible 60-day extension after a sale contract is signed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.410. The borrower, at any time for the purpose of facilitating a sale of the property or prepaying or refinancing the loan, may request the lender to stipulate the minimum amount which the lender considers to be the fair market value of the property for the purposes of this chapter. The lender shall advise the borrower within 10 working days of the receipt of such request of the lender’s estimate of the minimum fair market value. The estimate shall remain effective for purposes of this section for 90 days. For the purposes of this section and Section 1917.411, a sale of the property shall be deemed to have occurred within the 90-day period if there is a valid contract entered by an offer and acceptance within the 90-day period for the sale of the property. The lender’s stipulation shall remain effective for an additional 60 days following execution of the sale contract to permit completion of the sale and close of escrow. The lender shall not be liable to the borrower or any other party on account of damages alleged as a result of providing the stipulation or estimate required by this section if such stipulation or estimate is made in good faith. Evidence of lack of good faith shall include, but not be limited to, a showing that the lender has willfully or repeatedly overrepresented the fair market value of other properties in similar situations, applying equitable principles to those determinations. The lender shall be conclusively presumed to have acted in good faith and no action may be brought or maintained against a lender which arises out of the provision by the lender of such stipulation or estimate, if the lender relied upon an appraisal of an independent appraiser approved by the Federal National Mortgage Association. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.411.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

This section sets when fair market value equals the gross sale price, and when it must be determined under Section 1917.412 instead.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.411. (a) In the case of a sale for cash within 90 days after the lender stipulates, under the provisions of Section 1917.410, a minimum amount which the lender considers to be the fair market value of the property, the fair market value shall be the gross sale price, unless the gross sale price is below the minimum amount stipulated by the lender and the lender contests in writing the reasonableness of the gross sale price in relation to the fair market value within 10 working days of the lender’s receipt of notice of the gross sale price from the borrower, in which case fair market value shall be the greater of gross sale price or the amount determined under Section 1917.412. (b) In the case of a sale for cash where the borrower has not requested the lender under the provisions of Section 1917.410 to stipulate to the minimum amount which the lender considers to be the fair market value of the property or where the stipulated minimum amount was provided by the lender more than 90 days prior to the date of sale, fair market value shall be the gross sale price, unless the lender contests in writing the reasonableness of the gross sale price in relation to the fair market value within 10 working days of the lender’s receipt of notice of the gross sale price from borrower, in which case fair market value shall be the greater of the gross sale price or the amount determined under Section 1917.412. (c) In the case of a sale which includes consideration to the seller other than cash, fair market value shall be as determined under Section 1917.412. (d) If the shared appreciation loan is prepaid in full, or upon the occurrence of a maturity event, fair market value shall be as determined under Section 1917.412. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.412.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

When this section applies, fair market value is determined by averaging two appraisals, with costs generally split between lender and borrower, subject to stated exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 3. Determination of Fair Market Value [1917.410 - 1917.412] ( Article 3 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.412. When Section 1917.411 requires the application of this section, the fair market value shall be determined by averaging two appraisals of the property performed as described in this section. If possible, the appraisals shall be based on the sale prices of comparable properties in the market area sold within the preceding three-month period. The appraisals shall be made upon request of the lender by two independent residential appraisers, one to be selected by the lender and one by the borrower. Each appraiser shall be approved by the Federal National Mortgage Association. The cost of the appraiser selected by the lender shall be borne by the lender, and the cost of the appraiser selected by the borrower shall be borne by the borrower, unless the average of the two appraisals equals or is less than the gross sale price of the property, in which case the lender shall also pay the fee of the borrower’s appraiser up to two hundred dollars ($200). If either of the appraisers determines that the gross sale price does not reasonably reflect the fair market value of the property, or, in the case of a sale for which appraisal is required by this section, then the fair market value of the property shall be determined as the average of the two appraisals. If the borrower fails to select a qualified appraiser within 15 days after the lender has notified the borrower in writing of the lender’s request for an appraisal of the property, the reasons therefor, and the borrower’s option to select an independent appraiser within 15 days after the lender’s request is submitted to the borrower, the lender may designate the second appraiser, provided the lender’s request informs the borrower of this time limitation, and that the lender will select an appraiser on behalf of the borrower in the event the borrower fails to designate an appraiser, with consequent cost to the borrower. If pursuant to this section the lender designates the second appraiser, the cost of both appraisals shall be borne equally by the borrower and lender. If in any case the property has been damaged (other than normal wear and tear) and the damage has not been fully repaired, the determination of fair market value shall be based on the condition of the property not including the damage. Nothing in this section shall preclude the borrower and lender from establishing the fair market value of the property by mutual agreement in lieu of appraisals pursuant to this section. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.510.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 4. Improvements [1917.510 - 1917.511] ( Article 4 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A borrower may add qualifying capital-improvement value to the loan calculation if the article’s procedures are followed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 4. Improvements [1917.510 - 1917.511] ( Article 4 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.510. The borrower may have the value of capital improvements added to the fair market value of the borrower’s property, for purposes of determining the total loan obligation, but only if the procedures set forth in this article are followed. (a) Within 60 days following the completion of capital improvements during any 12-month period with a cost in excess of one thousand dollars ($1,000), the borrower shall send by first-class mail a notice of the completion of the improvements to the lender and shall submit proof of cost and an estimate of the increase in value of the property by reason of the improvements. (b) If, within 30 days of receipt of the notice, the lender questions the claimed increase in value of the property by reason of the improvements, the lender and the borrower may, by mutual agreement, establish the value of the capital improvements or the lender may require appraisal of the property. An appraisal shall be made to determine the increase in value of the property, if any, by reason of the improvements, by two appraisers selected in the same manner specified in Section 1917.412. If appraisals are performed, the increase in value resulting from the improvements for the purposes of this section, shall be one-half of the sum of the two appraisals. The cost of the appraiser selected by the borrower shall be borne by the borrower, and the cost of the appraiser selected by the lender shall be borne by the lender. (c) A credit for the value of capital improvements shall be provided if the increase in value of the property resulting therefrom is determined pursuant to subdivision (b) to exceed one thousand dollars ($1,000). (d) If 50 percent or more of the value of the labor or other work on the improvements was performed by the borrower, then the actual cost of the improvements need not exceed one thousand dollars ($1,000) for purposes of making application under subdivision (a). (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.511.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 4. Improvements [1917.510 - 1917.511] ( Article 4 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A shared appreciation loan for seniors may give the borrower more credit for improvements than this article normally allows, if the related Article 7 disclosures are changed to accurately state the credit terms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 4. Improvements [1917.510 - 1917.511] ( Article 4 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.511. Nothing in this article shall preclude a shared appreciation loan for seniors from providing the borrower with a greater credit for improvements than specified in this article, provided the relevant disclosures required by Article 7 (commencing with Section 1917.710) are appropriately modified to accurately disclose the terms of the credit. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.610.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A borrower and lender under a shared appreciation loan for seniors are treated as debtor and creditor, not as partners or joint venturers.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.610. The relationship of the borrower and the lender of a shared appreciation loan for seniors is that of debtor and creditor and shall not be, or be construed to be, a joint venture, an equity venture, a partnership, or other relationship. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.611.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A borrower cannot give up any right under this chapter; any such waiver is void and unenforceable.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.611. Any waiver of any right of a borrower under the provisions of this chapter shall be void and unenforceable. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.612.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

This section says the chapter provides one way to make shared appreciation loans for senior citizens, and those loans must follow the chapter’s terms and conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.612. This chapter facilitates one method of making shared appreciation loans to senior citizens in this state. The terms and conditions of any shared appreciation loan for seniors made pursuant to this chapter shall be consistent with this chapter. This chapter does not, however, apply to or limit shared appreciation financing of real property of a type made pursuant to other provisions of law, or which is not otherwise unlawful. Nothing in this chapter shall be construed in any way to affect shared appreciation financing of residential property of senior citizens not meeting the criteria specified in this chapter. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.613.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A shared appreciation loan for seniors is exempt from code and Financial Code limits on interest rates and from requirements about specific language in security instruments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.613. A shared appreciation loan for seniors shall not be subject to any provision of this code or the Financial Code which limits the interest rate or change of interest rate of variable interest rate or renegotiable interest instruments, or which requires particular language or provisions in security instruments securing variable or renegotiable rate obligations or in evidences of those debts. This section is declaratory of existing law. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.614.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A deed of trust securing a shared appreciation loan for seniors must secure the total loan obligation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.614. The lien of a deed of trust securing a shared appreciation loan for seniors shall include and secure the total loan obligation of the shared appreciation loan for seniors. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.615.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A shared appreciation loan lien attaches when the deed of trust is recorded, and it has priority over later-recorded liens and encumbrances, subject to the stated exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.615. The lien of a shared appreciation loan for seniors, including the total loan obligation, shall attach from the time of the recordation of the deed of trust securing the loan, and the lien, including the lien of the total loan obligation accrued or to be accrued, shall have priority over any other lien or encumbrance affecting the property secured by the shared appreciation instrument and recorded after the time of recordation of the shared appreciation instrument. However, nothing in this section or Section 1917.614 shall preclude a junior lien or encumbrance subordinate to the total loan obligation of the shared appreciation loan for seniors. In no case may a junior lien achieve priority over the lien securing the total loan obligation of the shared appreciation loan, provided that nothing in this section shall be construed to supersede Section 8450. (Amended by Stats. 2010, Ch. 697, Sec. 12. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)
1917.616.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

A qualifying shared appreciation loan for seniors is not treated as usurious just because it includes actual contingent interest.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.616. A shared appreciation loan for seniors which bears a fixed interest rate complying with the usury provisions of Article XV of the California Constitution shall not be deemed to become usurious by reason of the payment of actual contingent interest pursuant to this chapter; provided, however, that in no event may the amount of actual contingent interest received by the lender, plus the stated interest received by the lender, result in an annual percentage rate in excess of 1.5 times the applicable usury rate calculated pursuant to Article XV of the California Constitution, when all of such interest is applied over the actual term of the loan. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.617.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

This section says certain Corporations Code qualification requirements do not apply to a shared appreciation loan for seniors when the listed exemption applies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.617. The qualification requirements of Sections 25110, 25120, and 25130 of the Corporations Code do not apply to a shared appreciation loan for seniors to the extent the exemption afforded by subdivision (p) of Section 25100 of that code is applicable. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.618.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

Loans made under this chapter must comply with Section 580b of the Code of Civil Procedure.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.618. Any loan made pursuant to this chapter shall be subject to Section 580b of the Code of Civil Procedure. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.619.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

Loans made by lenders under this chapter are exempt from the constitutional restrictions on interest rates.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 5. General Provisions [1917.610 - 1917.619] ( Article 5 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.619. Pursuant to the authority contained in Section 1 of Article XV of the California Constitution, the restrictions upon rates of interest contained in Section 1 of Article XV of the California Constitution shall not apply to any obligation of any loan made by any lender pursuant to this chapter. This section creates and authorizes lenders under this chapter as an exempt class of persons pursuant to Section 1 of Article XV of the Constitution. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.710.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. )
Verify source ↗

For shared appreciation loans for seniors, the chapter’s required disclosures are the only state-law disclosures required, except as other specified laws may require. A lender may add extra disclosures if they are not inconsistent with the chapter. If the chapter prescribes specific wording, substantially the same wording should be used if possible, and reasonably equivalent wording may be used when needed for clearer or more accurate disclosure.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.710. (a) The disclosures made pursuant to this chapter, as required, shall be the only disclosures required to be made pursuant to state law for shared appreciation loans for seniors, notwithstanding any contrary provision applicable to loans not made under this chapter, except those, if any, that may be required by reason of the application of Division 1 (commencing with Section 25000) of the Corporations Code, or Chapter 1 (commencing with Section 11000) of Part 2 of Division 4 of the Business and Professions Code. However, a lender shall not be precluded from supplementing the disclosures required by this chapter with additional disclosures that are not inconsistent with the disclosures required by this chapter. (b) Whenever specific language is prescribed by this chapter, substantially the same language shall be utilized if possible, but reasonably equivalent language may be used to the extent necessary or appropriate to achieve a clearer or more accurate disclosure. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.711.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. )
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Lenders offering shared appreciation loans for seniors must give prospective borrowers a written disclosure early in the process, in at least 10-point type.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.711. (a) Each lender offering shared appreciation loans for seniors shall furnish to a prospective borrower, on the earlier of the dates on which the lender first provides written information concerning shared appreciation loans for seniors by the lender or provides a loan application form to the prospective borrower, a written disclosure as provided in this section, in type of not less than 10 point. (b) The disclosure shall be entitled “INFORMATION ABOUT THE (Name of Lender) SHARED APPRECIATION LOAN FOR SENIORS,” and shall describe the operation and effect of the shared appreciation loan for seniors, including a brief summary of its terms and conditions, together with a statement consisting of substantially the following language, to the extent applicable to such loan: INFORMATION ABOUT THE SHARED APPRECIATION LOANS FOR SENIORS Your lender is pleased to offer you the opportunity to borrow against the equity in your home through a Shared Appreciation Loan for Seniors. Because the Shared Appreciation Loan for Seniors differs from the usual mortgage loan, the law requires that you have a detailed explanation of the special features of the loan before you apply. Before you sign your particular Shared Appreciation Loan for Seniors documents, you will receive more information about your particular Shared Appreciation Loan for Seniors, which you should read and understand before you sign the loan documents. Receipt of shared appreciation loan proceeds could be considered income, thereby reducing payments received under government benefit programs, such as Supplemental Security Income (SSI). If this income is accumulated, the payments will be considered a resource, and could terminate your eligibility for SSI or Medi-Cal. See your legal adviser for more information. I GENERAL TERMS A Shared Appreciation Loan for Seniors will provide you with funds to pay off any existing indebtedness on your home and to pay the closing costs for the loan, and will then advance funds to you each month (monthly annuity) (1) for so long as you or your spouse who is a coborrower live; or (2) until you sell the house; or (3) until you decide to refinance the property and pay off your Shared Appreciation Loan for Seniors; or (4) until you cease to occupy the property as your residence, meaning either that the property has been rented out for exclusive use by a nonborrower, or the abandonment by all coborrowers of the property as their residence. Any of these four events are considered “maturity events,” and will constitute the end of the obligation to advance funds to you. The maturity events are described more fully in the promissory note. Your monthly annuity is calculated according to the method described in Section II, below. You will also be required to fulfill any customary terms or conditions included in the deed of trust encumbering your property. Each advance of funds you receive, including both initial advances (net original loan) and each monthly annuity, will be considered outstanding principal on your loan and will bear a stated interest rate which will be not more than 80 percent of the prevailing rate of interest in the locality in which you live. No payments on your total loan obligation need be made by you until the occurrence of one of the four maturity events described above. In exchange for a stated interest rate which is below the prevailing rate, you will be obligated to pay us additional interest later, in the form of a share of the appreciation of your home between the time you execute the promissory note and the occurrence of a maturity event. This additional interest is called “actual contingent interest” and is described more fully below at Section III. Once a maturity event has occurred, interest at the prevailing rate compounded not more often than monthly shall accrue on the entire outstanding loan balance, including the actual contingent interest, until repayment in full of the loan. Balloon Payment of Principal. If you do not sell the property before the occurrence of a maturity event, you or your successors will need to refinance or pay this loan at that time. The term of this loan is until occurrence of a maturity event. However, if the maturity event is cessation of occupancy or death of the borrowers, the term shall be extended until the earlier of the sale or refinancing of the property, or 12 months after occurrence of the maturity event. We will not refinance either the unpaid balance of the loan or the contingent interest at that time; you or your successors alone will be responsible for obtaining refinancing. If you refinance this loan, your monthly payments may increase substantially if the property has appreciated significantly or if the interest rate on the refinancing loan is much higher than today’s prevailing rates. In general, the more your property appreciates, the larger will be the amount of the actual contingent interest that you will have an obligation to pay or refinance. Tax and Estate Consequences. USE OF THE SHARED APPRECIATION LOAN FOR SENIORS WILL HAVE INCOME TAX OR ESTATE PLANNING CONSEQUENCES WHICH WILL DEPEND UPON YOUR OWN FINANCIAL AND TAX SITUATION. FOR FURTHER INFORMATION, YOU ARE URGED TO CONSULT YOUR OWN ACCOUNTANT, ATTORNEY, OR OTHER FINANCIAL ADVISER. THE QUESTIONS YOU SHOULD DISCUSS INCLUDE THE TAX DEDUCTIBILITY OF THE CONTINGENT INTEREST PAYMENT, YOUR RIGHT TO UTILIZE THAT DEDUCTION IN YEARS OTHER THAN THE YEAR IT IS PAID, AND THE EFFECT OF THE LOSS OF TAX BENEFITS BEFORE THAT TIME. BECAUSE YOU WILL BE BORROWING A SIGNIFICANT AMOUNT OF THE EQUITY IN YOUR HOME, WHEN A MATURITY EVENT OCCURS AND YOUR LOAN IS REPAID, LITTLE OR NO EQUITY MAY REMAIN FOR YOU OR YOUR HEIRS. Determining Fair Market Value. If you sell your property, the gross sale price will be the fair market value of the property, unless appraisals are requested by us and the appraisals average more than the gross sale price. However, at your request, we also will tell you what we consider to be the fair market value of the property. If you sell for cash for a gross sale price that equals or exceeds that amount, the gross sale price will control and appraisals will not be needed. Fair market value is determined by appraisals in the event of sales involving a consideration other than cash, prepayment of the loan in full, or any other maturity event. When appraisals are required, fair market value is determined by averaging two independent appraisals of the property. You may select one of the two appraisers from a list approved by the Federal National Mortgage Association. If appraisals are requested by us, we will provide you with full information on how to select an appraiser. In lieu of appraisals, we may establish fair market value at an agreed amount if an agreement can be reached between you and us. Determining Value of Capital Improvements. Capital improvements with a value exceeding one thousand dollars ($1,000) (but no maintenance or repair costs) may be added to the value of the property for the purpose of determining the net appreciated value, but only if the procedures set forth in the shared appreciation loan documents are followed. It is important to note that capital improvements completed and claimed in any 12-month period must add more than one thousand dollars ($1,000) in value to the property and must generally also cost more than one thousand dollars ($1,000). However, if you have performed at least one-half the value of the labor or other work involved, then the cost of the improvements will not be considered. The appraised value of the improvements will be the increase in the value of the property resulting from the improvements. You will receive no credit for minor or major repairs or for improvements that are not appraised at more than one thousand dollars ($1,000), but the lender will acquire a share of any resulting appreciation in the value of the property. II CALCULATION OF MONTHLY ANNUITY Your Shared Appreciation Loan for Seniors consists of two components: first, an initial advance to cover the cost of paying off any existing liens which you wish to pay off, and to cover closing costs; and second, a monthly annuity. Your Shared Appreciation Loan for Seniors is designed to provide a monthly stream of funds for the remainder of the lives of the borrowers, with no payments on the loan due at any time during the lives of the borrowers unless the property is sold or the loan is refinanced or repaid in full or until you cease to occupy the property. In determining the amount that it is able to lend, the lender estimates what at least 75 percent of the value of the borrower’s home is likely to be at the end of the borrower’s life expectancy, based on a reasonable projected appreciation rate per year. Borrowers’ estimated life spans are predicted on the basis of “actuarial tables” prepared by the government and the insurance industry; and are based only upon estimated female life span, plus up to five years, to avoid any discriminatory effect between the sexes in determining loan amounts and for conservative lending practices. Once the maximum amount which may be loaned has been determined, the amount necessary to pay off existing liens and for closing costs, plus interest at the stated interest rate on that amount for the borrower’s life expectancy, is subtracted. The “projected contingent interest” that is predicted to have been earned at the end of the estimated life span is also subtracted. A monthly annuity is then calculated on the remaining amount, based on the stated interest and the borrower’s life expectancy. This complex calculation is illustrated by the following example: Mr. and Mrs. Smith, who are 73 and 71 years of age, respectively, live in a home with a current value of one hundred fifty thousand dollars ($150,000), and apply for a Shared Appreciation Loan for Seniors. According to acceptable actuarial tables, Mrs. Smith, the younger of the two, has a remaining actuarial life span of 18 years. At the end of the 18 years, at a 4 percent per year projected appreciation rate, the house would be worth three hundred thousand dollars ($300,000), 80 percent of which equals two hundred forty thousand dollars ($240,000) (the lender could have based the calculation on as little as 75 percent of the three hundred thousand dollar ($300,000) projected value). The house currently has a fifteen thousand dollar ($15,000) first mortgage, and closing costs will be approximately two thousand dollars ($2,000), and the Smiths’ wish to receive an initial advance to pay off the mortgage and to cover closing costs. At the time the Smiths apply, the average of the 30-year fixed interest rate for home mortgages of the Federal Home Loan Mortgage Corporation is 13 percent, which is the “prevailing rate.” The “stated interest rate” on the Smiths’ loan will be 75 percent of the “prevailing rate,” or 93/4 percent (the lender could have charged up to 80 percent of the prevailing rate). The Smiths’ payments will be calculated so that at the end of the projected loan term of 18 years, the total of all payments owed to the lender will be two hundred forty thousand dollars ($240,000), 80 percent of the estimated value of the Smiths’ home after 18 years. Two items must be subtracted from the two hundred forty thousand dollar ($240,000) future value before the Smiths’ payment can be calculated: (a) Since the Smiths’ are requesting an advance of seventeen thousand dollars ($17,000) to pay off their existing mortgage and for closing costs, seventeen thousand dollars ($17,000), plus interest on seventeen thousand dollars ($17,000) at 93/4 percent for 18 years, for a total of ninety-six thousand fifty-seven dollars ($96,057), must be subtracted from the two hundred forty thousand dollars ($240,000) available for lending. This leaves one hundred forty-three thousand nine hundred forty-three dollars ($143,943). (b) The lender’s share of appreciation of the value of the home is also subtracted before calculating the monthly payment. Since the home is projected to increase in value by one hundred fifty thousand dollars ($150,000), the lender’s share, 25 percent, equals thirty-seven thousand five hundred dollars ($37,500). When subtracted from one hundred forty-three thousand nine hundred forty-three dollars ($143,943), this leaves one hundred six thousand four hundred forty-three dollars ($106,443) for monthly payments. The monthly payment is calculated on the basis of one hundred six thousand four hundred forty-three dollars ($106,443), over an 18-year term with interest at 93/4 percent. This equals one hundred eighty-four dollars ($184) per month. The Smiths’ will receive one hundred eighty-four dollars ($184) per month until a maturity event occurs. At the time of occurrence of a maturity event, the Smiths, or their successors, if they are both deceased, will owe the seventeen thousand dollars ($17,000) advanced initially, plus the sum of all the monthly payments of one hundred eighty-four dollars ($184) received by them until the occurrence of the maturity event, plus interest at 93/4 percent on all of the above from the time the funds were advanced until occurrence of the maturity event, plus actual contingent interest calculated as described in Section III below. Interest, compounded no more often than monthly, on all of the above shall accrue at the prevailing rate from the date of any maturity event until the loan is paid in full. Because interest accumulates rapidly, when a large initial advance is received, or the projected loan term is relatively long, the monthly payment is significantly lower. For instance, if the Smiths’ were 80 years old, and received no lump-sum advance, their monthly payment would be seven hundred forty-nine dollars ($749) per month. The longer the loan has been in effect, of course, the greater the amount that will be owed, as monthly payments and interest accumulate, and as the home appreciates in value. Unless the borrowers choose to sell the home or refinance the loan, monthly payments will continue until both are deceased, no matter how long they live so long as they continue to occupy the property. Thus, the total loan obligation is not limited to the projected life span of the borrowers, nor to any set dollar amount, regardless of the projected maximum. Regardless of how much principal has been advanced by Shared Appreciation Loans for Seniors, and regardless of how much stated interest and actual contingent interest have accumulated or been earned, payments will continue. If the borrower lives substantially longer than the actuarial prediction, it is possible that the total of principal and acquired stated interest plus actual contingent interest, may exceed the value of the home. IN NO EVENT, HOWEVER, WILL A BORROWER OR A BORROWER’S ESTATE BE LIABLE ON THE SHARED APPRECIATION LOAN FOR SENIORS IN AN AMOUNT GREATER THAN THE VALUE OF THE HOME. The Smith example can be illustrated as follows: A. $150,000 = Value of home at time of loan. B. $300,000 = Estimated value of home at end of life expectancy (18 years, 4% annual appreciation). C. $240,000 = Loan (80% of B). D. $150,000 = Total appreciation (B less A). E. $ 37,500 = Lender’s share of appreciation (25% × D). F. $ 96,057 = Payoff of preexisting mortgage, plus interest. G. $106,443 = Amount from which monthly payment is calculated (C less E less F). H. $ 184 = Monthly payment (based on G) to the Smiths. At death or other maturity event, the sum of all monthly payments, plus interest, plus the lender’s share of appreciation, plus the amount owing from payoff of the old mortgage, must be paid to the lender. III ACTUAL CONTINGENT INTEREST This Shared Appreciation Loan for Seniors provides that you, as borrower, must pay to the lender, as actual contingent interest, a share of up to 25 percent of the net appreciated value of the real property which secures the loan. This actual contingent interest is due and payable whenever a maturity event occurs. The dollar amount of actual contingent interest, if any, which you will be required to pay cannot be determined at this time. If the property does not appreciate, you will owe us nothing as actual contingent interest, and will only have to repay principal and stated interest. Actual contingent interest will not become due if title to the property is transferred on your death to a spouse who is a coborrower, or where a transfer results from a decree of dissolution of a marriage and a spouse who is a coborrower becomes the sole owner. Your obligation to pay actual contingent interest and stated interest will reduce the amount of the appreciation, if any, that you will realize on the property over and above its value today. Appreciation will not produce a real gain in your equity in the property unless the appreciation rate exceeds the general inflation rate, but you will be required to pay a portion of the appreciation as actual contingent interest without regard to whether the appreciation has resulted in a real gain. When your home is sold or refinanced, you normally will receive enough cash to pay the total loan obligation. However, if you sell and provide financing to the buyer, you may possibly not receive enough cash to pay the actual contingent interest, and, in that event, it will be necessary for you to provide cash from other funds. In no event, however, will your total loan obligation exceed the value of your home at the time of occurrence of a maturity event, unless you have willfully caused damage to the property. Calculating the actual contingent interest. Actual contingent interest will be calculated as follows: FAIR MARKET VALUE OF THE PROPERTY ON DATE OF MATURITY EVENT (Sale Price or Appraised Value) –(less) CURRENT VALUE OF THE PROPERTY –(less) VALUE OF CAPITAL IMPROVEMENTS MADE BY YOU (Must exceed $1,000 in cost. ) ×(times) LENDER’S APPRECIATION SHARE (up to 25%) =(equals) ACTUAL CONTINGENT INTEREST Below are answers to two frequently asked questions about the Shared Appreciation Loans for Seniors program. If you have any further questions, feel free to call the lender at ____, or write to the lender at ____. Question. What if I marry, or my spouse is not a coborrower? Answer. Your Shared Appreciation Loan for Seniors will be due upon the death of the last surviving coborrower. Your lender will be happy to include a new or present spouse as a coborrower, provided the new spouse is over age __ at the time he or she becomes a coborrower. Because the monthly payment annuity is based upon the projected life span of the youngest coborrower, the annuity will be readjusted if a new, younger coborrower is added. The annuity will be adjusted to reflect the annuity that would have existed had the new coborrower been a coborrower from the beginning of the loan period. Since the monthly annuity is based on a fixed “lendable amount” derived from projected appreciation of the home (see Section II, above), a longer projected loan period, because of the younger age of the new coborrower, will result in a decrease in the size of the monthly annuity. Question. Can I obtain an additional advance for home improvements? Answer. Yes, provided your lender approves of the improvement. Your lender will act reasonably in reviewing your request. At the time the advance is made, your lender will calculate the amount of interest at the stated interest rate that will accrue through the projected life of the loan, as it was determined at the time the loan was made. This amount will be deducted from the original lendable amount, and a new annuity calculated, based upon the calculations described in Section II. The effect is the same as if the advance had been made at the outset of the loan, except, of course, you will not be responsible for any interest until the funds are actually advanced. Your annuity will, however, be smaller. (Amended by Stats. 1988, Ch. 1406, Sec. 4.)
1917.712.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. )
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Lenders making shared appreciation loans for seniors must give borrowers specified Regulation Z disclosures before the loan closes, and those disclosures must include required shared-appreciation details and attachments.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.712. (a) Each lender making a shared appreciation loan for seniors shall also furnish to the prospective borrower, prior to the consummation of the loan, the disclosures required by Subpart C of Federal Reserve Board Regulation Z (12 C.F.R. Part 226), including 12 C.F.R. Section 226.18(f), to the extent applicable to the transaction. (b) The disclosure made pursuant to subdivision (a) and Regulation Z shall be based on the fixed interest rate of the shared appreciation loan for seniors, and shall include a description of the shared appreciation feature, including (1) the conditions for its imposition, the time at which it would be collected, and the limitations on the lender’s share, as required by the Federal Reserve Board in the information published by the board in 46 Federal Register 20877-78 (April 7, 1981), and (2) the lender’s share of the appreciated value and the prevailing interest rate as defined in Section 1917.320. (c) The disclosure made pursuant to subdivision (a) and Regulation Z shall be accompanied by (1) several transaction-specific examples of the operation and effect of the shared appreciation loan and (2) the following charts comparing the shared appreciation loan and a conventional loan made at the prevailing interest rate, and illustrating the possible increase in the monthly payments, and the possible annual percentage rate of finance charge, on the assumptions therein stated: Chart 1 CONVENTIONAL MORTGAGE AT ____% If the same loan balance were financed under a conventional, 30-year, fixed-rate, level-payment mortgage, your monthly payments would be: Years 1–30 $_______/mo. Chart 2 IF YOU REFINANCE THIS TRANSACTION AT ___% If your property appreciates at 10% per year, and if your loan obligation (including contingent interest due) at the end of __ years is refinanced at __% (the prevailing market interest rate now), your monthly payments will be: Years 1–__ _____ Refinancing loan $_______/mo. _____ $_______/mo.* * Refinancing loan, assuming a conventional, 30-year, fixed-rate, level-payment mortgage. Other mortgage instruments, e.g., graduated-payment or shared-appreciation, if available, may result in lower payments. Chart 3 APR IF PROPERTY APPRECIATES AT 10% If your property appreciates at 10% per year, the total finance charge on your shared appreciation loan for seniors (including contingent interest) will equal $____, and the annual percentage rate of the total finance charge (including actual contingent interest) will equal ____%. (d) The disclosures required by subdivision (c) shall be separate from the disclosures required by Regulation Z, and may be presented in the document containing the disclosures required by Regulation Z or in one or more separate documents. (e) Except to the extent that this section requires disclosure of additional information not required by Regulation Z, compliance with the applicable credit disclosure requirements of Regulation Z shall constitute compliance with the requirements of this section. (f) The disclosure prescribed in Section 1917.711 shall be physically attached to the disclosures required by this section and Regulation Z at the time the Regulation Z disclosures are furnished to the borrower. (g) In the event federal law is amended so that this section is inconsistent therewith, the federal law shall prevail as to the disclosures required by this section. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.713.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. )
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Lenders making a shared appreciation loan for seniors must give the prospective borrower a disclosure statement before the loan is completed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.713. Each lender making a shared appreciation loan for seniors shall additionally furnish to the prospective borrower, prior to consummation of the loan, a statement containing the following information: IMPORTANT INFORMATION ABOUT YOUR SHARED APPRECIATION LOAN FOR SENIORS You are being offered a shared appreciation loan. Before you decide to accept this loan, read this statement, which is designed to provide important information you should consider. 1. Prevailing interest rate: __%. 2. Stated interest rate on this loan: __%. 3. Projected contingent interest: __%. 4. Initial amount of this loan: $__. 5. Amount of the monthly annuity payments you will receive: $__. 6. Projected term of this loan: __ years. 7. Projected total loan obligation you will have to pay, assuming the loan continues to the end of the “borrower’s” life expectancy: $__. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1917.714.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. )
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A deed of trust or evidence of debt for a shared appreciation loan for seniors must include a disclosure in at least 12-point bold type.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7. Shared Appreciation Loans for Seniors [1917.320 - 1917.714] ( Chapter 7 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## ARTICLE 6. Notices and Disclosures [1917.710 - 1917.714] ( Article 6 added by Stats. 1984, Ch. 1701, Sec. 1. ) ## 1917.714. Each deed of trust and evidence of debt executed in connection with a shared appreciation loan for seniors shall contain a statement, printed or written in a size equal to at least 12-point bold type, consisting of substantially the following language: “THIS IS A [DURATION] SHARED APPRECIATION LOAN FOR SENIORS. THE LENDER'S INTEREST INCLUDES [PERCENT] OF THE NET APPRECIATED VALUE OF THE PROPERTY. A BALLOON PAYMENT OF PRINCIPAL WILL BE REQUIRED. FOR FURTHER INFORMATION, READ THE FLYER ENTITLED " INFORMATION ABOUT THE [NAME OF LENDER] SHARED APPRECIATION LOAN FOR SENIORS.”’ The notice required by this section shall be completed to state the terms of the shared appreciation loan and the lender’s share of the net appreciated value. (Added by Stats. 1984, Ch. 1701, Sec. 1.)
1918.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. )
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This section defines several terms used in the mortgage loans chapter, including “evidence of debt,” “secretary,” “secretary’s designee,” and “security document.”

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. ) ## 1918.5. As used in this chapter: (a) “Evidence of debt” means a note or negotiable instrument. (b) “Secretary” means the Secretary of Business and Consumer Services. (c) “Secretary’s designee” means the director of a department within the agency that licenses or regulates the institutions, organizations, or persons engaged in a business related to or affecting compliance with this chapter. (d) “Security document” means a mortgage contract, deed of trust, real estate sales contract, or any note or negotiable instrument issued in connection therewith, when its purpose is to finance the purchase or construction of real property occupied or intended to be occupied by the borrower, containing four or fewer residential units or on which four or fewer residential units are to be constructed. (e) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026. (Amended by Stats. 2026, Ch. 28, Sec. 13. (SB 170) Effective June 29, 2026. Operative July 1, 2026, by its own provisions.)
1920.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. )
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Mortgage loans covered by this chapter must meet specific disclosure, notice, and interest-adjustment rules, and borrowers may prepay without a charge.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. ) ## 1920. Any mortgage instrument that is made pursuant to the provisions of this chapter shall meet the following requirements: (a) Standards for the adjustment of interest rates or monthly payments shall consider factors which can reasonably be deemed to affect the ability of borrowers to meet their mortgage obligations. (b) No change in interest provided for in any provision for a variable interest rate contained in a security document, or evidence of debt issued in connection therewith, shall be valid unless the provision is set forth in the security document, and in any evidence of debt issued in connection therewith, and the document or documents contain the following provisions: (1) A statement attached to the security document and to any evidence of debt issued in connection therewith printed or written in a size equal to at least 10-point bold type, consisting of language authorized by the secretary or the secretary’s designee notifying the borrower that the mortgage may provide for changes in interest, principal loan balance, payment, or the loan term. (2) Before the due date of the first monthly installment following each change in the interest rate, notice shall be mailed to the borrower of the following: (A) The base index. (B) The most recently published index at the date of the change in the rate. (C) The interest rate in effect as a result of the change. (D) Any change in the monthly installment. (E) The amount of the unpaid principal balance. (F) If the interest scheduled to be paid on the due date exceeds the amount of the installment, a statement to that effect and the amount of the excess, and the address and telephone number of the office of the lender to which inquiries may be made. (c) The borrower is permitted to prepay the loan in whole or in part without a prepayment charge at any time, and no fee or other charge may be required by the lender of the borrower as a result of any change in the interest rate, the payment, the outstanding principal loan balance, or the loan term. (d) Changes in the rate of interest on the loan shall reflect the movement of an index, which shall be authorized by the secretary or the secretary’s designee. (e) To the extent that any monthly installment is less than the amount of interest accrued during the month with respect to which the installment is payable, the borrower shall be notified of such instance in a form and manner prescribed by the secretary or the secretary’s designee. Such notice shall include, but not be limited to, the amount of interest exceeding the monthly installment, and any borrower options under these circumstances. (f) The lender shall provide to the borrower, prior to the execution by the borrower of any mortgage payment instrument authorized pursuant to this chapter, full and complete disclosure, as specified by the secretary or the secretary’s designee, of the nature and effect of the mortgage payment instrument, and all costs or savings attributed to the mortgage instrument. (Amended by Stats. 1997, Ch. 232, Sec. 24. Effective January 1, 1998.)
1921.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. )
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Lenders offering adjustable-rate residential mortgage loans must give prospective borrowers the current Federal Reserve Board mortgage handbook and, in some cases, display the information publicly in the office.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 7.5. Mortgage Loans [1918.5 - 1921] ( Heading of Chapter 7.5 renumbered from Chapter 6 (as renumbered by Stats. 1982, Ch. 466) by Stats. 1986, Ch. 248, Sec. 16. ) ## 1921. (a) As used in this section: (1) “Adjustable-rate residential mortgage loan” means any loan or credit sale which is primarily for personal, family, or household purposes which bears interest at a rate subject to change during the term of the loan, whether predetermined or otherwise, and which is made upon the security of real property containing not less than one nor more than four dwelling units. (2) “Lender” means any person, association, corporation, partnership, limited partnership, or other business entity making, in any 12-month period, more than 10 loans or credit sales upon the security of residential real property containing not less than one nor more than four dwelling units. (b) Any lender offering adjustable-rate residential mortgage loans shall provide to prospective borrowers a copy of the most recent available publication of the Federal Reserve Board that is designed to provide the public with descriptive information concerning adjustable-rate mortgages (currently entitled “Consumer Handbook on Adjustable Rate Mortgages”), either upon the prospective borrower’s request or at the same time the lender first provides written information, other than direct-mail advertising, concerning any adjustable-rate residential mortgage loan or credit sale to the prospective borrower, whichever is earlier. Any lender who fails to comply with the requirements of this section may be enjoined by any court of competent jurisdiction and shall be liable for actual damages, the costs of the action, and reasonable attorney’s fees as determined by the court. The court may make those orders as may be necessary to prevent future violations of this section. (c) A lender that makes adjustable-rate mortgage loan disclosures pursuant to either Part 29 of Chapter I of, or Part 563 of Chapter V of, Title 12 of the Code of Federal Regulations, may comply with this section by providing the descriptive information required by subdivision (b) at the same time and under the same circumstances that it makes disclosures in accordance with those federal regulations. Such a lender shall also display and make the descriptive information available to the public in an area of the lender’s office that is open to the public. (Amended by Stats. 1987, Ch. 56, Sec. 19.)
1923.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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This section defines “reverse mortgage” for this chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923. For purposes of this chapter, “reverse mortgage” means a nonrecourse loan secured by real property that meets all of the following criteria: (a) The loan provides cash advances to a borrower based on the equity or the value in a borrower’s owner-occupied principal residence. (b) The loan requires no payment of principal or interest until the entire loan becomes due and payable. (c) The loan is made by a lender licensed or chartered pursuant to the laws of this state or the United States. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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This chapter applies only to reverse mortgage loans executed on or after January 1, 1998.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.10. This chapter shall only apply to those reverse mortgage loans executed on or after January 1, 1998. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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Reverse mortgage loans must meet listed requirements, including no prepayment penalty, no reduction in periodic advances because of interest-rate changes, disclosure and paperwork rules, and several lender restrictions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.2. A reverse mortgage loan shall comply with all of the following requirements: (a) Prepayment, in whole or in part, shall be permitted without penalty at any time during the term of the reverse mortgage loan. For the purposes of this section, penalty does not include any fees, payments, or other charges that would have otherwise been due upon the reverse mortgage being due and payable. (b) A reverse mortgage loan may provide for a fixed or adjustable interest rate or combination thereof, including compound interest, and may also provide for interest that is contingent on the value of the property upon execution of the loan or at maturity, or on changes in value between closing and maturity. (c) A reverse mortgage may include costs and fees that are charged by the lender, or the lender’s designee, originator, or servicer, including costs and fees charged upon execution of the loan, on a periodic basis, or upon maturity. (d) If a reverse mortgage loan provides for periodic advances to a borrower, these advances shall not be reduced in amount or number based on any adjustment in the interest rate. (e) A lender who fails to make loan advances as required in the loan documents, and fails to cure an actual default after notice as specified in the loan documents, shall forfeit to the borrower treble the amount wrongfully withheld plus interest at the legal rate. (f) The reverse mortgage loan may become due and payable upon the occurrence of any one of the following events: (1) The home securing the loan is sold or title to the home is otherwise transferred. (2) All borrowers cease occupying the home as a principal residence, except as provided in subdivision (g). (3) Any fixed maturity date agreed to by the lender and the borrower occurs. (4) An event occurs which is specified in the loan documents and which jeopardizes the lender’s security. (g) Repayment of the reverse mortgage loan shall be subject to the following additional conditions: (1) Temporary absences from the home not exceeding 60 consecutive days shall not cause the mortgage to become due and payable. (2) Extended absences from the home exceeding 60 consecutive days, but less than one year, shall not cause the mortgage to become due and payable if the borrower has taken prior action which secures and protects the home in a manner satisfactory to the lender, as specified in the loan documents. (3) The lender’s right to collect reverse mortgage loan proceeds shall be subject to the applicable statute of limitations for written loan contracts. Notwithstanding any other provision of law, the statute of limitations shall commence on the date that the reverse mortgage loan becomes due and payable as provided in the loan agreement. (4) The lender shall prominently disclose in the loan agreement any interest rate or other fees to be charged during the period that commences on the date that the reverse mortgage loan becomes due and payable, and that ends when repayment in full is made. (h) The first page of any deed of trust securing a reverse mortgage loan shall contain the following statement in 10-point boldface type: “This deed of trust secures a reverse mortgage loan.” (i) A lender or any other person that participates in the origination of the mortgage shall not require an applicant for a reverse mortgage to purchase an annuity as a condition of obtaining a reverse mortgage loan. (1) The lender or any other person that participates in the origination of the mortgage shall not do either of the following: (A) Participate in, be associated with, or employ any party that participates in or is associated with any other financial or insurance activity, unless the lender maintains procedural safeguards designed to ensure that individuals participating in the origination of the mortgage shall have no involvement with, or incentive to provide the prospective borrower with, any other financial or insurance product. (B) Refer the borrower to anyone for the purchase of an annuity or other financial or insurance product prior to the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement. (2) This subdivision does not prevent a lender from offering or referring borrowers for title insurance, hazard, flood, or other peril insurance, or other similar products that are customary and normal under a reverse mortgage loan. (3) A lender or any other person who participates in the origination of a reverse mortgage loan to which this subdivision would apply, and who complies with paragraph (1) of subsection (n), and with subsection (o), of Section 1715z-20 of Title 12 of the United States Code, and any regulations and guidance promulgated under that section, as amended from time to time, in offering the loan, regardless of whether the loan is originated pursuant to the program authorized under Section 1715z-20 of Title 12 of the United States Code, and any regulations and guidance promulgated under that section, shall be deemed to have complied with this subdivision. (j) Prior to accepting a final and complete application for a reverse mortgage the lender shall provide the borrower with a list of not fewer than 10 counseling agencies that are approved by the United States Department of Housing and Urban Development to engage in reverse mortgage counseling as provided in Subpart B of Part 214 of Title 24 of the Code of Federal Regulation. The counseling agency shall not receive any compensation, either directly or indirectly, from the lender or from any other person or entity involved in originating or servicing the mortgage or the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product. This subdivision does not prevent a counseling agency from receiving financial assistance that is unrelated to the offering or selling of a reverse mortgage loan and that is provided by the lender as part of charitable or philanthropic activities. (k) A lender shall not accept a final and complete application for a reverse mortgage loan from a prospective applicant or assess any fees upon a prospective applicant until the lapse of seven days from the date of counseling, as evidenced by the counseling certification, and without first receiving certification from the applicant or the applicant’s authorized representative that the applicant has received counseling from an agency as described in subdivision (j) and that the counseling was conducted in person, unless the certification specifies that the applicant elected to receive the counseling in a manner other than in person. The certification shall be signed by the borrower and the agency counselor, and shall include the date of the counseling and the name, address, and telephone number of both the counselor and the applicant. Electronic facsimile copy of the housing counseling certification satisfies the requirements of this subdivision. The lender shall maintain the certification in an accurate, reproducible, and accessible format for the term of the reverse mortgage. (l) A lender shall not make a reverse mortgage loan without first complying with, or in the case of brokered loans ensuring compliance with, the requirements of Section 1632, if applicable. (Amended by Stats. 2014, Ch. 854, Sec. 2. (AB 1700) Effective January 1, 2015.)
1923.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
Verify source ↗

A reverse mortgage creates a lien on the property for the advances made under it and the interest on those advances, and that lien has priority over later-filed or later-recorded liens.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.3. A reverse mortgage shall constitute a lien against the subject property to the extent of all advances made pursuant to the reverse mortgage and all interest accrued on these advances, and that lien shall have priority over any lien filed or recorded after recordation of a reverse mortgage loan. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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A property is treated as owner-occupied if the occupant is a trust beneficiary, even when legal title is held by a trust.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.4. For the purposes of this chapter, a property shall be deemed to be owner-occupied, notwithstanding that the legal title to the property is held in the name of a trust, provided that the occupant of the property is a beneficiary of that trust. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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A lender may not take a reverse mortgage loan application unless required disclosures and a worksheet guide are provided, and the application cannot be approved until the signed worksheet guide is returned.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.5. (a) No reverse mortgage loan application shall be taken by a lender unless the loan applicant, prior to receiving counseling, has received from the lender the following plain language statement in conspicuous 16-point type or larger, advising the prospective borrower about counseling prior to obtaining the reverse mortgage loan: ## IMPORTANT NOTICE TO REVERSE MORTGAGE LOAN APPLICANT A REVERSE MORTGAGE IS A COMPLEX FINANCIAL TRANSACTION. IF YOU DECIDE TO OBTAIN A REVERSE MORTGAGE LOAN, YOU WILL SIGN BINDING LEGAL DOCUMENTS THAT WILL HAVE IMPORTANT LEGAL AND FINANCIAL IMPLICATIONS FOR YOU AND YOUR ESTATE. IT IS THEREFORE IMPORTANT TO UNDERSTAND THE TERMS OF THE REVERSE MORTGAGE AND ITS EFFECT ON YOUR FUTURE NEEDS. BEFORE ENTERING INTO THIS TRANSACTION, YOU ARE REQUIRED TO CONSULT WITH AN INDEPENDENT REVERSE MORTGAGE LOAN COUNSELOR TO DISCUSS WHETHER OR NOT A REVERSE MORTGAGE IS RIGHT FOR YOU. A LIST OF APPROVED COUNSELORS WILL BE PROVIDED TO YOU BY THE LENDER. SENIOR CITIZEN ADVOCACY GROUPS ADVISE AGAINST USING THE PROCEEDS OF A REVERSE MORTGAGE TO PURCHASE AN ANNUITY OR RELATED FINANCIAL PRODUCTS. IF YOU ARE CONSIDERING USING YOUR PROCEEDS FOR THIS PURPOSE, YOU SHOULD DISCUSS THE FINANCIAL IMPLICATIONS OF DOING SO WITH YOUR COUNSELOR AND FAMILY MEMBERS. (b) (1) In addition to the plain language notice described in subdivision (a), no reverse mortgage loan application shall be taken by a lender unless the lender provides the prospective borrower, prior to his or her meeting with a counseling agency on reverse mortgages, with a reverse mortgage worksheet guide, or in the event that the prospective borrower seeks counseling prior to requesting a reverse mortgage loan application from the reverse mortgage lender, the counseling agency shall provide the prospective borrower with the following plain language reverse mortgage worksheet guide in 14-point type or larger: Reverse Mortgage Worksheet Guide—Is a Reverse Mortgage Right for Me? To decide if a recommended purchase of a reverse mortgage is right for you, consider all of your goals, needs, and available options. This self-evaluation worksheet has five essential questions for you to consider when deciding if a reverse mortgage is right for you. Directions: The State of California advises you to carefully read and complete this worksheet, and bring it with you to your counseling session. You may make notes on a separate piece of paper with questions you may have about whether a reverse mortgage is right for you. During the counseling session, you can speak openly and confidentially with a professional reverse mortgage counselor, independent of the lender, who can help you understand what it means for you to become involved with this particular loan. 1. What happens to others in your home after you die or move out? Rule: When the borrower dies, moves, or is absent from the home for 12 consecutive months, the loan may become due. Considerations: Having a reverse mortgage affects the future of all those living with you. If the loan cannot be paid off, then the home will have to be sold in order to satisfy the lender. To determine if this is an issue for you, ask yourself: (A) Who is currently living in the home with you? (B) What will they do when you die or permanently move from the home? (C) Have you discussed this with all those living with you or any family members? (D) Who will pay off the loan, and have you discussed this with them? (E) If your heirs do not have enough money to pay off the loan, the home will pass into foreclosure. Do you need to discuss this with your counselor? Yes or No 2. Do you know that you can default on a reverse mortgage? Rule: There are three continuous financial obligations. If you fail to keep up with your insurance, property taxes, and home maintenance, you will go into default. Uncured defaults lead to foreclosures. Considerations: Will you have adequate resources and income to support your financial needs and obligations once you have removed all of your available equity with a reverse mortgage? To determine if this is an issue for you, ask yourself: (A) Are you contemplating a lump-sum withdrawal? (B) What other resources will you have once you have reached your equity withdrawal limit? (C) Will you have funds to pay for unexpected medical expenses? (D) Will you have the ability to finance alternative living accommodations, such as independent living, assisted living, or a long-term care nursing home? (E) Will you have the ability to finance routine or catastrophic home repairs, especially if maintenance is a factor that may determine when the mortgage becomes payable? Do you need to discuss this with your counselor? Yes or No 3. Have you fully explored other options? Rule: Less costly options may exist. Consideration: Reverse mortgages are compounding-interest loans, and the debt to the lender increases as time goes on. You may want to consider using less expensive alternatives or other assets you may have before you commit to a reverse mortgage. To determine if this is an issue for you, consider: (A) Alternative financial options for seniors may include, but not be limited to, less costly home equity lines of credit, property tax deferral programs, or governmental aid programs. (B) Other types of lending arrangements may be available and less costly. You may be able to use your home equity to secure loans from family members, friends, or would-be heirs. Do you need to discuss this with your counselor? Yes or No 4. Are you intending to use the reverse mortgage to purchase a financial product? Rule: Reverse mortgages are interest-accruing loans. Considerations: Due to the high cost and increasing debt incurred by reverse mortgage borrowers, using home equity to finance investments is not suitable in most instances. To determine if this is an issue for you, consider: (A) The cost of the reverse mortgage loan may exceed any financial gain from any product purchased. (B) Will the financial product you are considering freeze or otherwise tie up your money? (C) There may be high surrender fees, service charges, or undisclosed costs on the financial products purchased with the proceeds of a reverse mortgage. (D) Has the sales agent offering the financial product discussed suitability with you? Do you need to discuss this with your counselor? Yes or No 5. Do you know that a reverse mortgage may impact your eligibility for government assistance programs? Rule: Income received from investments will count against individuals seeking government assistance. Considerations: Converting your home equity into investments may create nonexempt asset statuses. To determine if this is an issue for you, consider: (A) There are state and federal taxes on the income investments financed through home equity. (B) If you go into a nursing home for an extended period of time, the reverse mortgage loan will become due, the home may be sold, and any proceeds from the sale of the home may make you ineligible for government benefits. (C) If the homeowner is a Medi-Cal beneficiary, a reverse mortgage may make it difficult to transfer ownership of the home, thus resulting in Medi-Cal recovery. Do you need to discuss this with your counselor? Yes or No (2) The reverse mortgage worksheet guide required in paragraph (1) shall be signed by the agency counselor, if the counseling is done in person, and by the prospective borrower and returned to the lender along with the certification of counseling required under subdivision (k) of Section 1923.2, and the loan application shall not be approved until the signed reverse mortgage worksheet guide is provided to the lender. A copy of the reverse mortgage worksheet guide shall be provided to the borrower. (Amended by Stats. 2014, Ch. 854, Sec. 3. (AB 1700) Effective January 1, 2015.)
1923.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
Verify source ↗

A lender is presumed to have met any disclosure duty under this chapter if it gives a disclosure statement in the same form as required by the chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.6. The lender shall be presumed to have satisfied any disclosure duty imposed by this chapter if the lender provides a disclosure statement in the same form as provided in this chapter. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
Verify source ↗

A reverse-mortgage arrangement, transfer, or lien cannot be invalidated just because the lender failed to comply with this chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.7. No arrangement, transfer, or lien subject to this chapter shall be invalidated solely because of the failure of a lender to comply with any provision of this chapter. However, nothing in this section shall preclude the application of any other existing civil remedies provided by law. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1923.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. )
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Reverse mortgage loan payments are treated as loan proceeds, not income, when determining eligibility and benefits under means-tested aid programs, and undisbursed reverse mortgage funds are treated as home equity instead of loan proceeds, resources, or assets.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 4. LOAN [1884 - 1923.10] ( Title 4 enacted 1872. ) ## CHAPTER 8. Reverse Mortgages [1923 - 1923.10] ( Chapter 8 added by Stats. 1997, Ch. 797, Sec. 1. ) ## 1923.9. (a) To the extent that implementation of this section does not conflict with federal law resulting in the loss of federal funding, reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals. (b) Undisbursed reverse mortgage funds shall be treated as equity in the borrower’s home and not as proceeds from a loan, resources, or assets for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals. (c) This section applies to any law or program relating to payments, allowances, benefits, or services provided on a means-tested basis, by this state, including, but not limited to, optional state supplements to the federal supplemental security income program, low-income energy assistance, property tax relief, general assistance, and medical assistance only to the extent this section does not conflict with Title 19 of the federal Social Security Act. (d) For the purposes of this section, “means-tested programs and aid to individuals” includes, but is not limited to, programs set forth in Chapter 2 (commencing with Section 11200) of Part 3 of Division 9, and Part 5 (commencing with Section 17000) of Division 9, of the Welfare and Institutions Code. (Added by Stats. 1997, Ch. 797, Sec. 1. Effective January 1, 1998.)
1925.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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This section defines hiring as a contract where one person gives another temporary possession and use of property other than money for reward, and the property must be returned later.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1925. Hiring is a contract by which one gives to another the temporary possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time. (Enacted 1872.)
1926.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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During the hiring, the products of the hired thing belong to the hirer.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1926. The products of a thing hired, during the hiring, belong to the hirer. (Enacted 1872.)
1927.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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An agreement to let upon hire requires the letter to secure the hirer’s quiet possession of the hired thing for the hire term.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1927. An agreement to let upon hire binds the letter to secure to the hirer the quiet possession of the thing hired during the term of the hiring, against all persons lawfully claiming the same. (Enacted 1872.)
1928.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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The hirer of a thing must use ordinary care to preserve it in safety and good condition.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1928. The hirer of a thing must use ordinary care for its preservation in safety and in good condition. (Enacted 1872.)
1929.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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A hirer must repair damage or deterioration caused by the hirer's lack of ordinary care.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1929. The hirer of a thing must repair all deteriorations or injuries thereto occasioned by his want of ordinary care. (Amended by Stats. 1905, Ch. 454.)
1930.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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If a thing is rented for a particular purpose, the hirer must not use it for any other purpose.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1930. When a thing is let for a particular purpose the hirer must not use it for any other purpose; and if he does, he is liable to the letter for all damages resulting from such use, or the letter may treat the contract as thereby rescinded. (Amended by Stats. 1905, Ch. 454.)
1931.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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The letter of a thing may end the hiring early and take the thing back if the hirer uses it against the agreement or fails to make required repairs within a reasonable time after being asked.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1931. The letter of a thing may terminate the hiring and reclaim the thing before the end of the term agreed upon: 1. When the hirer uses or permits a use of the thing hired in a manner contrary to the agreement of the parties; or, 2. When the hirer does not, within a reasonable time after request, make such repairs as he is bound to make. (Enacted 1872.)
1932.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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The hirer may end the hiring early if the other party fails to perform required possession, condition, or repair obligations after request, or if most of the hired thing perishes without the hirer’s lack of ordinary care.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1932. The hirer of a thing may terminate the hiring before the end of the term agreed upon: 1. When the letter does not, within a reasonable time after request, fulfill his obligations, if any, as to placing and securing the hirer in the quiet possession of the thing hired, or putting it into good condition, or repairing; or, 2. When the greater part of the thing hired, or that part which was and which the letter had at the time of the hiring reason to believe was the material inducement to the hirer to enter into the contract, perishes from any other cause than the want of ordinary care of the hirer. (Amended by Stats. 1905, Ch. 454.)
1933.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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Hiring of a thing ends when the agreed term ends, the parties agree to end it, the hirer gets a superior title, or the thing is destroyed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1933. The hiring of a thing terminates: 1. At the end of the term agreed upon; 2. By the mutual consent of the parties; 3. By the hirer acquiring a title to the thing hired superior to that of the letter; or, 4. By the destruction of the thing hired. (Enacted 1872.)
1934.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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If a hiring is terminable at one party’s pleasure, it ends when the other party is notified of that party’s death or incapacity to contract; otherwise, it does not end for that reason.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1934. If the hiring of a thing is terminable at the pleasure of one of the parties, it is terminated by notice to the other of his death or incapacity to contract. In other cases it is not terminated thereby. (Enacted 1872.)
1934.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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For month-to-month accommodations in a nursing or convalescent home, the arrangement ends when the patient dies, unpaid rent stops at that date, and any advance rent must be returned within two weeks.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1934.5. Notwithstanding the provisions of Section 1934, the hiring of accommodations from month to month in a nursing or convalescent home shall be terminated by the death of the patient by or for whom the hiring was made. The hirer or his heir, legatee, or personal representative shall not be liable for any rent due for such accommodations under the hiring agreement beyond that rent due for the date on which such patient died. No advance payment of rent made by the hirer shall be subject to the claim of, or retention by, the nursing or convalescent home and shall be returned to the heir, legatee, or personal representative no later than two weeks after such patient has died. Any provision in the hiring agreement by which the hirer agrees to modify or waive any of his rights under this section shall be void as contrary to public policy. The provisions of this section shall be applicable to all hiring agreements executed on or after January 1, 1979. (Added by Stats. 1978, Ch. 628.)
1935.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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If a hired thing is returned early, the hirer must pay a proportional hire amount for the actual use, unless the use was only nominal and not beneficial.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1935. When the hiring of a thing is terminated before the time originally agreed upon, the hirer must pay the due proportion of the hire for such use as he has actually made of the thing, unless such use is merely nominal, and of no benefit to him. (Enacted 1872.)
1938.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. )
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Commercial property owners or lessors must disclose CASp inspection status on lease documents and may have to give tenants CASp reports and certificates, with limited tenant rescission rights.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1. Hiring in General [1925 - 1938] ( Chapter 1 enacted 1872. ) ## 1938. (a) A commercial property owner or lessor shall state on every lease form or rental agreement executed on or after January 1, 2017, whether or not the subject premises have undergone inspection by a Certified Access Specialist (CASp). (b) If the subject premises have undergone inspection by a CASp and, to the best of the commercial property owner’s or lessor’s knowledge, there have been no modifications or alterations completed or commenced between the date of the inspection and the date of the lease or rental agreement that have impacted the subject premises’ compliance with construction-related accessibility standards, the commercial property owner or lessor shall provide, prior to execution of the lease or rental agreement, a copy of any report prepared by the CASp with an agreement from the prospective lessee or tenant that information in the report shall remain confidential, except as necessary for the tenant to complete repairs and corrections of violations of construction-related accessibility standards that the lessee or tenant agrees to make. (c) Making any repairs or modifications necessary to correct violations of construction-related accessibility standards that are noted in a CASp report is presumed to be the responsibility of the commercial property owner or lessor, unless otherwise mutually agreed upon by the commercial property owner or lessor and the lessee or tenant. The prospective lessee or tenant shall have the opportunity to review any CASp report prior to execution of the lease or rental agreement. If the report is not provided to the prospective lessee or tenant at least 48 hours prior to execution of the lease or rental agreement, the prospective lessee or tenant shall have the right to rescind the lease or rental agreement, based upon the information contained in the report, for 72 hours after execution of the agreement. (d) If the subject premises have been issued an inspection report by a CASp, as described in paragraph (1) of subdivision (a) of Section 55.53, indicating that it meets applicable standards, as defined in paragraph (4) of subdivision (a) of Section 55.52, the commercial property owner or lessor shall provide a copy of the current disability access inspection certificate and any inspection report to the lessee or tenant not already provided pursuant to subdivision (b) within seven days of the date of the execution of the lease form or rental agreement. (e) If the subject premises have not been issued a disability access inspection certificate, as described in subdivision (e) of Section 55.53, the commercial property owner or lessor shall state the following on the lease form or rental agreement: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” (f) As used in this section, “commercial property” means property that is offered for rent or lease to persons operating, or intending to operate, a place of public accommodation as defined in Section 202 of Chapter 2 of Part 2 of Title 24 of the California Code of Regulations, or a facility to which the general public is invited, at those premises. (Amended by Stats. 2018, Ch. 92, Sec. 37. (SB 1289) Effective January 1, 2019.)
1939.01.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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This section defines terms used in California’s rental passenger vehicle rules and sets basic requirements for membership programs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.01. For the purpose of this chapter, the following definitions shall apply: (a) “Rental company” means a person or entity in the business of renting passenger vehicles to the public. (b) “Renter” means any person in a manner obligated under a contract for the lease or hire of a passenger vehicle from a rental company for a period of less than 30 days. (c) “Additional mandatory charges” means any separately stated charges that the rental company requires the renter to pay to hire or lease the vehicle for the period of time to which the rental rate applies, which are imposed by a governmental entity and specifically relate to the operation of a rental vehicle business, including, but not limited to, a customer facility charge, airport concession fee, tourism commission assessment, vehicle license recovery fee, or other government-imposed taxes or fees. (d) “Airport concession fee” means a charge collected by a rental company from a renter that is the renter’s proportionate share of the amount paid by the rental company to the owner or operator of an airport for the right or privilege of conducting a vehicle rental business on the airport’s premises. (e) “Authorized driver” means all of the following: (1) The renter. (2) The renter’s spouse, if that person is a licensed driver and satisfies the rental company’s minimum age requirement. (3) The renter’s employer or coworker, if the employer or coworker is engaged in business activity with the renter, is a licensed driver, and satisfies the rental company’s minimum age requirement. (4) A person expressly listed by the rental company on that renter’s contract as an authorized driver. (f) “Customer facility charge” means any fee, including an alternative fee, required by an airport to be collected by a rental company from a renter pursuant to Section 50474.21 of the Government Code. (g) “Damage waiver” means a rental company’s agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges. (h) “Electronic surveillance technology” means a technological method or system used to observe, monitor, or collect information, including telematics, Global Positioning System (GPS), wireless technology, or location-based technologies. “Electronic surveillance technology” does not include event data recorders (EDR), sensing and diagnostic modules (SDM), or other systems that are used either: (1) For the purpose of identifying, diagnosing, or monitoring functions related to the potential need to repair, service, or perform maintenance on the rental vehicle. (2) As part of the vehicle’s airbag sensing and diagnostic system in order to capture safety systems-related data for retrieval after a crash has occurred or in the event that the collision sensors are activated to prepare the decisionmaking computer to make the determination to deploy or not to deploy the airbag. (i) “Estimated time for replacement” means the number of hours of labor, or fraction thereof, needed to replace damaged vehicle parts as set forth in collision damage estimating guides generally used in the vehicle repair business and commonly known as “crash books.” (j) “Estimated time for repair” means a good faith estimate of the reasonable number of hours of labor, or fraction thereof, needed to repair damaged vehicle parts. (k) “Membership program” means a service offered by a rental company that permits customers to bypass the rental counter and go directly to the vehicle previously reserved or select an alternate vehicle. A membership program shall meet all of the following requirements: (1) The renter initiates enrollment by completing an application on which the renter can specify a preference for type of vehicle and acceptance or declination of optional services. (2) The rental company fully discloses, prior to the enrollee’s first rental as a participant in the program, all terms and conditions of the rental agreement as well as all required disclosures. (3) The renter may terminate enrollment at any time. (4) The rental company fully explains to the renter that designated preferences, as well as acceptance or declination of optional services, may be changed by the renter at any time for the next and future rentals. (5) An employee is available at the lot where the renter takes possession of the vehicle, to receive any change in the rental agreement from the renter. (l) “Passenger vehicle” or “vehicle” means a “passenger vehicle” as defined in Section 465 of the Vehicle Code. (m) “Personal vehicle sharing program” means a person or entity that for monetary compensation facilitates sharing or renting passenger vehicles to the public, including via a peer-to-peer internet website, application, or other platform that connects a vehicle owner with a vehicle driver to facilitate sharing or renting a vehicle for consideration, and includes a personal vehicle sharing program as defined in Section 11580.24 of the Insurance Code. (n) “Quote” means an estimated cost of rental provided by a rental company or a third party to a potential customer that is based on information provided by the potential customer and used to generate an estimated cost of rental, including, but not limited to, potential dates of rental, locations, or classes of vehicle. (o) “Tourism commission assessment” means the charge collected by a rental company from a renter that has been established by the California Travel and Tourism Commission pursuant to Section 13995.65 of the Government Code. (p) “Vehicle license fee” means the tax imposed pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code). (q) “Vehicle registration fee” means any fee imposed pursuant to any provision of Chapter 6 (commencing with Section 9101) of Division 3 of the Vehicle Code or any other law that imposes a fee upon the registration of vehicles in this state. (r) “Vehicle license recovery fee” means a charge that seeks to recover the amount of any vehicle license fee and vehicle registration fee paid by a rental company for the particular class of vehicle being rented. If imposed, the vehicle license recovery fee shall be separately stated as a single charge in the quote and rental contract. (Amended by Stats. 2023, Ch. 547, Sec. 1. (AB 893) Effective January 1, 2024.)
1939.03.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company and renter may agree to limit the renter’s responsibility for certain vehicle damage, theft loss, towing/storage/impound fees, and an administrative charge, subject to listed conditions and exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.03. Except as limited by Section 1939.05, a rental company and a renter may agree that the renter will be responsible for no more than all of the following: (a) Physical or mechanical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from collision regardless of the cause of the damage. (b) (1) Loss due to theft of the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, provided that the rental company establishes by clear and convincing evidence that the renter or the authorized driver failed to exercise ordinary care while in possession of the vehicle. In addition, the renter shall be presumed to have no liability for any loss due to theft if both of the following conditions are met: (A) An authorized driver returns the ignition key furnished by the rental company. (B) An authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the rental company and the police or other law enforcement agency in providing information concerning the theft. (2) The presumption set forth in this subdivision is a presumption affecting the burden of proof which the rental company may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft. (c) Physical damage to the rented vehicle up to its fair market value, as determined in the customary market for the sale of that vehicle, resulting from vandalism occurring after, or in connection with, the theft of the rented vehicle. However, the renter shall have no liability for any damage due to vandalism if the renter would have no liability for theft pursuant to subdivision (b). (d) Physical damage to the rented vehicle up to a total of five hundred dollars ($500) resulting from vandalism unrelated to the theft of the rented vehicle. (e) Actual charges for towing, storage, and impound fees paid by the rental company if the renter is liable for damage or loss. (f) An administrative charge, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the rented vehicle. (Amended by Stats. 2025, Ch. 449, Sec. 1. (AB 1197) Effective January 1, 2026.)
1939.05.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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This section limits what a renter or authorized driver can be charged for vehicle damage and caps certain administrative charges.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.05. (a) The total amount of the renter’s liability to the rental company resulting from damage to the rented vehicle shall not exceed the sum of the following: (1) The estimated cost of parts which the rental company would have to pay to replace damaged vehicle parts. (2) The estimated cost of labor to replace damaged vehicle parts, which shall not exceed the product of (A) the rate for labor usually paid by the rental company to replace vehicle parts of the type that were damaged and (B) the estimated time for replacement. (3) The estimated cost of labor to repair damaged vehicle parts, which shall not exceed the lesser of the following: (A) The product of the rate for labor usually paid by the rental company to repair vehicle parts of the type that were damaged and the estimated time for repair. (B) The sum of the estimated labor and parts costs determined under paragraphs (1) and (2) to replace the same vehicle parts. (4) Actual charges for towing, storage, and impound fees paid by the rental company. (b) For purposes of subdivision (a), all discounts and price reductions or adjustments that are or will be received by the rental company shall be subtracted from the estimate to the extent not already incorporated in the estimate, or otherwise promptly credited or refunded to the renter. (c) For the purpose of converting the estimated time for repair into the same units of time in which the rental rate is expressed, a day shall be deemed to consist of eight hours. (d) The administrative charge described in subdivision (f) of Section 1939.03 shall not exceed (1) fifty dollars ($50) if the total estimated cost for parts and labor is more than one hundred dollars ($100) up to and including five hundred dollars ($500), (2) one hundred dollars ($100) if the total estimated cost for parts and labor exceeds five hundred dollars ($500) up to and including one thousand five hundred dollars ($1,500), or (3) one hundred fifty dollars ($150) if the total estimated cost for parts and labor exceeds one thousand five hundred dollars ($1,500). An administrative charge shall not be imposed if the total estimated cost of parts and labor is one hundred dollars ($100) or less. (e) The total amount of an authorized driver’s liability to the rental company, if any, for damage occurring during the authorized driver’s operation of the rented vehicle shall not exceed the amount of the renter’s liability under this section. (f) A rental company shall not recover from an authorized driver an amount exceeding the renter’s liability under this section. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.07.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies’ damage claims against renters must be tied to actual loss, with limits for repair costs and total-loss vehicles, and renters may require claims to go through their insurance if coverage is confirmed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.07. (a) A claim against a renter resulting from damage or loss, excluding loss of use, to a rental vehicle shall be reasonably and rationally related to the actual loss incurred. A rental company shall mitigate damages where possible and shall not assert or collect a claim for physical damage which exceeds the actual costs of the repairs performed or the estimated cost of repairs, if the rental company chooses not to repair the vehicle, including all discounts and price reductions. However, if the vehicle is a total loss vehicle, the claim shall not exceed the total loss vehicle value established in accordance with procedures that are customarily used by insurance companies when paying claims on total loss vehicles, less the proceeds from salvaging the vehicle, if those proceeds are retained by the rental company. (b) If insurance coverage exists under the renter’s applicable personal or business insurance policy and the coverage is confirmed during regular business hours, the renter may require that the rental company submit any claims to the renter’s applicable personal or business insurance carrier. The rental company shall not make any written or oral representations that it will not present claims or negotiate with the renter’s insurance carrier. For purposes of this subdivision, confirmation of coverage includes telephone confirmation from insurance company representatives during regular business hours. Upon request of the renter and after confirmation of coverage, the amount of claim shall be resolved between the insurance carrier and the rental company. The renter shall remain responsible for payment to the rental company for any loss sustained that the renter’s applicable personal or business insurance policy does not cover. (c) A rental company shall not recover from an authorized driver for an item described in Section 1939.03 to the extent the rental company obtains recovery from another person. (d) This chapter applies only to the maximum liability of an authorized driver to the rental company resulting from damage to the rented vehicle and not to the liability of another person. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.09.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies offering damage waivers must disclose key terms, and most waiver limitations are unenforceable unless subdivision (b) allows them.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.09. (a) (1) Except as provided in subdivision (b), a damage waiver shall provide or, if not expressly stated in writing, shall be deemed to provide that the renter has no liability for damage, loss, loss of use, or a cost or expense incident thereto. (2) Except as provided in subdivision (b), every limitation, exception, or exclusion to a damage waiver is void and unenforceable. (b) A rental company may provide in the rental contract that a damage waiver does not apply under any of the following circumstances: (1) Damage or loss results from an authorized driver’s (A) intentional, willful, wanton, or reckless conduct, (B) operation of the vehicle under the influence of drugs or alcohol in violation of Section 23152 of the Vehicle Code, (C) towing or pushing anything, or (D) operation of the vehicle on an unpaved road if the damage or loss is a direct result of the road or driving conditions. (2) Damage or loss occurs while the vehicle is (A) used for commercial hire, (B) used in connection with conduct that could be properly charged as a felony, (C) involved in a speed test or contest or in driver training activity, (D) operated by a person other than an authorized driver, or (E) operated outside the United States. (3) An authorized driver who has (A) provided fraudulent information to the rental company, or (B) provided false information and the rental company would not have rented the vehicle if it had instead received true information. (c) (1) A rental company that offers or provides a damage waiver for any consideration in addition to the rental rate shall clearly and conspicuously disclose the following information in the rental contract or holder in which the contract is placed and, also, in signs posted at the location where the renter signs the rental contract, and, for renters who are enrolled in the rental company’s membership program, in a sign that shall be posted in a location clearly visible to those renters as they enter the location where their reserved rental vehicles are parked or near the exit of the bus or other conveyance that transports the enrollee to a reserved vehicle: (A) the nature of the renter’s liability, such as liability for all collision damage regardless of cause, (B) the extent of the renter’s liability, such as liability for damage or loss up to a specified amount, (C) the renter’s personal insurance policy or the credit card used to pay for the vehicle rental transaction may provide coverage for all or a portion of the renter’s potential liability, (D) the renter should consult with their insurer to determine the scope of insurance coverage, including the amount of the deductible, if any, for which the renter is obligated, (E) the renter may purchase an optional damage waiver to cover all liability, subject to whatever exceptions the rental company expressly lists that are permitted under subdivision (b), and (F) the range of charges for the damage waiver. (2) In addition to the requirements of paragraph (1), a rental company that offers or provides a damage waiver shall orally disclose to all renters, except those who are participants in the rental company’s membership program, that the damage waiver may be duplicative of coverage that the customer maintains under their own policy of motor vehicle insurance. The renter shall acknowledge receipt of the oral disclosure near that part of the contract where the renter indicates, by the renter’s own initials, their acceptance or declination of the damage waiver. Adjacent to that same part, the contract also shall state that the damage waiver is optional. Further, the contract for these renters shall include a clear and conspicuous written disclosure that the damage waiver may be duplicative of coverage that the customer maintains under their own policy of motor vehicle insurance. (3) (A) The following is an example, for purposes of illustration and not limitation, of a notice fulfilling the requirements of paragraph (1) for a rental company that imposes liability on the renter for collision damage to the full value of the vehicle: “NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE WAIVER You are responsible for all collision damage to the rented vehicle even if someone else caused it or the cause is unknown. You are responsible for the cost of repair up to the value of the vehicle, and towing, storage, and impound fees. Your own insurance, or the issuer of the credit card you use to pay for the vehicle rental transaction, may cover all or part of your financial responsibility for the rented vehicle. You should check with your insurance company, or credit card issuer, to find out about your coverage and the amount of the deductible, if any, for which you may be liable. Further, if you use a credit card that provides coverage for your potential liability, you should check with the issuer to determine if you must first exhaust the coverage limits of your own insurance before the credit card coverage applies. The rental company will not hold you responsible if you buy a damage waiver. But a damage waiver will not protect you if (list exceptions).” (B) When the notice in subparagraph (A) is printed in the rental contract or holder in which the contract is placed, the following shall be printed immediately following the notice: “The cost of an optional damage waiver is $____ for every (day or week).” (C) When the notice in subparagraph (A) appears on a sign, the following shall appear immediately adjacent to the notice: “The cost of an optional damage waiver is $____ to $____ for every (day or week), depending upon the vehicle rented.” (d) Notwithstanding any other law, a rental company may sell a damage waiver for each full or partial 24-hour rental day for the damage waiver, subject to the following rate limitations: (1) For rental vehicles that the rental company designates as an “economy car,” “compact car,” “intermediate car,” “standard car,” “full-size car,” or another term having similar meaning to the five smallest body-size categories of vehicles established by the Association of Car Rental Industry Systems Standards for North America when offered for rental, the rate shall not exceed twenty-five dollars ($25). (2) Starting January 1, 2023, and each January thereafter, the rate cap shall be increased based on the increase in the Consumer Price Index for All Urban Consumers (CPI-U) over the previous year as reported by the United States Bureau of Labor Statistics. (Amended by Stats. 2021, Ch. 415, Sec. 1. (AB 901) Effective January 1, 2022.)
1939.13.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company cannot require renters to buy a damage waiver, optional insurance, or another optional product or service.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.13. (a) A rental company shall not require the purchase of a damage waiver, optional insurance, or another optional good or service. (b) A rental company shall not engage in any unfair, deceptive, or coercive conduct to induce a renter to purchase the damage waiver, optional insurance, or another optional good or service, including conduct such as, but not limited to, refusing to honor the renter’s reservation, limiting the availability of vehicles, requiring a deposit, or debiting or blocking the renter’s credit card account for a sum equivalent to a deposit if the renter declines to purchase the damage waiver, optional insurance, or another optional good or service. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.15.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company generally may not recover damage or loss claims by charging the renter’s credit card or placing a debit or block on the account without the renter’s later express permission.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.15. (a) In the absence of express permission granted by the renter subsequent to damage to, or loss of, the rented vehicle, a rental company shall not seek to recover any portion of a claim arising out of damage to, or loss of, the vehicle by processing a credit card charge or causing a debit or block to be placed on the renter’s credit card account. (b) A rental company shall not engage in any unfair, deceptive, or coercive tactics in attempting to recover or in recovering on any claim arising out of damage to, or loss of, the rented vehicle. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.17.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company may collect a customer facility charge or alternative customer facility charge under Government Code Section 50474.3.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.17. A customer facility charge or alternative customer facility charge may be collected by a rental company pursuant to Section 50474.3 of the Government Code. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.19.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies and third parties must disclose rental pricing and fuel-source information, and they cannot add certain required fees beyond the listed charges.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.19. (a) When providing a quote, or imposing charges for a rental, the rental company or third party may separately state the rental rate, additional mandatory charges, if any, and a mileage charge, if any, that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies. A rental company or third party shall not charge in addition to the rental rate, additional mandatory charges including mandatory third party service fees, or a mileage charge, as those may be applicable, any other fee that is required to be paid by the renter as a condition of hiring or leasing the vehicle. The rental company or third party shall provide the total charges estimate for the entire rental, including all taxes and fees imposed by a government, as soon as dates, location, and vehicle type or class, which can include all vehicles, for the rental are provided to the rental company or third party. (b) (1) If additional mandatory charges are imposed, the rental company shall do all of the following: (A) At the time the quote is given, provide the person receiving the quote with the total charges estimate of the rental rate and all additional mandatory charges for the entire rental. The total charges, if provided on an internet website page, shall be displayed in a typeface at least as large as any rental rate disclosed on that page and shall be provided on a page that the person receiving the quote may reach by following a link directly from the page on which the rental rate is first provided. The total charges estimate may exclude mileage charges and charges for optional items that cannot be determined prior to completing the reservation based upon the information provided by the person. (B) At the time and place the rental commences, clearly and conspicuously disclose in the rental contract, or that portion of the contract that is provided to the renter, the total of the rental rate and additional mandatory charges, for the entire rental, exclusive of charges that cannot be determined at the time the rental commences. Charges imposed pursuant to this paragraph shall be no more than the amount of the quote provided in a confirmed reservation, unless the person changes the terms of the rental contract subsequent to making the reservation. (C) Provide each person, other than those persons within the rental company, offering quotes to actual or prospective customers, access to information about additional mandatory charges, as well as access to information about when those charges apply. Any person providing quotes to actual or prospective customers for the hire or lease of a vehicle from a rental company shall provide the quotes in the manner described in subparagraph (A). (2) If additional mandatory charges are imposed, a third party shall do both of the following: (A) At the time the quote is given, provide the person receiving the quote with the total charges estimate of the rental rate and all additional mandatory charges for the entire rental. The total charges, if provided on an internet website page, shall be displayed in a typeface at least as large as any rental rate disclosed on that page and shall be provided on a page that the person receiving the quote may reach by following a link directly from the page on which the rental rate is first provided. The total charges estimate may exclude mileage charges and charges for optional items that cannot be determined prior to completing the reservation based upon the information provided by the person. (B) Provide each person, other than those persons within the third party, offering quotes to actual or prospective customers, access to information about additional mandatory charges, as well as access to information about when those charges apply. Any person providing quotes to actual or prospective customers for the hire or lease of a vehicle from a third party shall provide the quotes in the manner described in subparagraph (A). (c) In addition to the rental rate, taxes, additional mandatory charges, if any, and mileage charges, if any, a rental company or third party may charge for an item or service provided in connection with a particular rental transaction if the renter could have avoided incurring the charge by choosing not to obtain or utilize the optional item or service. Items and services for which the rental company or third party may impose an additional charge include, but are not limited to, optional insurance and accessories requested by the renter, service charges incident to the renter’s optional return of the vehicle to a location other than the location where the vehicle was hired or leased, and charges for refueling the vehicle at the conclusion of the rental transaction in the event the renter did not return the vehicle with as much fuel as was in the fuel tank at the beginning of the rental. A rental company also may impose an additional charge based on reasonable age criteria established by the rental company. (d) A rental company or third party may charge a fee for an authorized driver, in addition to the rental charge for an individual renter, unless the authorized driver is either of the following: (1) The renter’s spouse, as described in paragraph (2) of subdivision (e) of Section 1939.01, the renter’s child or person for whom the renter is a legal guardian, the renter’s sibling, or the renter’s parent or grandparent. (2) The renter’s employer or coworker, as described in paragraph (3) of subdivision (e) of Section 1939.01. (e) In the event that a rental company or third party learns that an additional driver who was not previously authorized in the rental agreement has driven the rental car, the rental company or third party may charge up to twice the authorized driver fee. (f) If a rental company or third party states a rental rate in print advertisement or in a quotation, the rental company or third party shall disclose clearly in that advertisement or quotation the terms of mileage conditions relating to the advertised or quoted rental rate, including, but not limited to, to the extent applicable, the amount of mileage and gas charges, the number of miles for which no charges will be imposed, and a description of geographic driving limitations within the United States and Canada. (g) All rate advertisements, including those by third parties, shall include a disclaimer, which shall be prominently displayed, providing that additional mandatory charges may be imposed, including, but not limited to, airport fees, tourism fees, vehicle license recovery fees, or other government imposed taxes or fees, and indicating that this information, including an estimate of the total rental cost, is displayed on the rental company’s or third party’s internet website. All rate advertisements shall also include a statement that additional charges may apply if an optional good or service, such as a damage waiver, is purchased. (h) If a rental company provides a third party with rental rate, additional mandatory charges information, and fuel source information, the rental company is not responsible for the failure of that third party to comply with this section. If a rental company provides a third party with rental rate, additional mandatory charges information, and fuel source information in a manner that does not comply with this section or the rental company fails to provide the third party with additional mandatory charges information and fuel source information along with the rental rate information, the third party is not responsible for the failure of the rental company to comply with this section. (i) If a rental company delivers a vehicle to a renter at a location other than the location where the rental company normally carries on its business, the rental company shall not charge the renter an amount for the rental for the period before the delivery of the vehicle. If a rental company picks up a rented vehicle from a renter at a location other than the location where the rental company normally carries on its business, the rental company shall not charge the renter an amount for the rental for the period after the renter notifies the rental company to pick up the vehicle. (j) Except as otherwise permitted pursuant to the customer facility charge, a rental company shall not separately charge, in addition to the rental rate, a fee for transporting the renter to a location where the rented vehicle will be delivered to the renter. (k) A rental company or third party shall clearly indicate the fuel source of the vehicle prior to completion of a reservation. For purposes of this subdivision, “fuel source” has the same definition as the term “engine fuel” in Section 13400 of the Business and Professions Code. (Amended by Stats. 2025, Ch. 349, Sec. 1. (AB 1374) Effective January 1, 2026.)
1939.20.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company is not treated as violating the cited consumer-protection rule when it leaves disclosed charges out of the advertised, displayed, or offered rental vehicle price, if the disclosures comply with Section 1939.19.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.20. (a) A rental company is not in violation of paragraph (29) of subdivision (a) of Section 1770 for excluding from the advertised, displayed, or offered price of a rental vehicle charges that are disclosed to the consumer in compliance with subdivisions (a), (b), and (g) of Section 1939.19. (b) This section shall become operative on July 1, 2024. (Added by Stats. 2023, Ch. 400, Sec. 4. (SB 478) Effective January 1, 2024. Operative July 1, 2024, by its own provisions.)
1939.21.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies may separately quote or impose additional charges for certain qualified business rentals if they give the required total-charge disclosure; renters can sue for violations, and waivers of this section are void.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.21. (a) For purposes of this section: (1) “Additional charges” means charges other than a per period base rental rate established by the business program. (2) “Business program” means either of the following: (A) A contract between a rental company and a business program sponsor that has established the per period base rental rate, and any other material terms relating to additional charges, on which the rental company will rent passenger vehicles to persons authorized by the sponsor. (B) A plan, program, or other arrangement established by a rental company at the request of, or with the consent of, a business program sponsor under which the rental company offers to rent passenger vehicles to persons authorized by the sponsor at per period base rental rates, and any other material terms relating to additional charges, that are not the same as those generally offered by the rental company to the public. (3) “Business program sponsor” means a legal entity, other than a natural person, that is a corporation, limited liability company, or partnership. (4) “Business renter” means, for any business program sponsor, a person who is authorized by the sponsor, through the use of an identifying number or program name or code, to enter into a rental contract under the sponsor’s business program. In no case shall the term “business renter” include a person renting as any of the following: (A) A nonemployee member of a not-for-profit organization. (B) The purchaser of a voucher or other prepaid rental arrangement from a person, including a tour operator, engaged in the business of reselling those vouchers or prepaid rental arrangements to the general public. (C) An individual whose vehicle rental is eligible for reimbursement in whole or in part as a result of the person being insured or provided coverage under a policy of insurance issued by an insurance company. (D) An individual whose vehicle rental is eligible for reimbursement in whole or in part as a result of the person purchasing passenger vehicle repair services from a person licensed to perform such services. (5) “Qualified business rental” under a business program established for a business program sponsor by a rental company means the rental of a passenger vehicle under the business program if either:(A) in the 12-month period ending on the date of the rental or in the calendar year immediately preceding the year in which the rental occurs, the rentals under all business programs established by the rental company for the business program sponsor and its affiliates produced gross rental revenues in excess of twenty-five thousand dollars ($25,000) or (B) the rental company in good faith estimates that rentals under all the business programs established by the rental company for the business program sponsor and its affiliates will produce gross rental revenues in excess of twenty-five thousand dollars ($25,000) in the 12-month period commencing with the date of the rental or in the calendar year in which the rental occurs. The rental company has the burden of establishing by objectively verifiable evidence that the rental was a qualified business rental. (6) “Quote” means telephonic, in-person, and computer-transmitted quotations. (b) Notwithstanding any provision to the contrary contained in Section 1939.19 or 1939.23, a rental company may, in connection with the qualified business rental of a passenger vehicle to a business renter of a business program sponsor under the sponsor’s business program, do both of the following: (1) Separately quote additional charges for the rental if, at the time the quote is provided, the person receiving the quote is also provided a good faith estimate of the total of all the charges for the entire rental. The estimate may exclude mileage charges and charges for optional items and services that cannot be determined prior to completing the reservation based upon the information provided by the renter. (2) Separately impose additional charges for the rental, if the rental contract, or another document provided to the business renter at the time and place the rental commences, clearly and conspicuously discloses the total of all the charges for the entire rental, exclusive of charges that cannot be determined at the time the rental commences. (c) A renter may bring an action against a rental company for the recovery of damages and appropriate equitable relief for a violation of this section. The prevailing party shall be entitled to recover reasonable attorney’s fees and costs. (d) Any waiver of any of the provisions of this section shall be void and unenforceable as contrary to public policy. (e) This section shall not be interpreted to mean that a rental company is not required to comply with the requirements of subdivisions (c) to (h), inclusive, of Section 1939.19. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.22.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company must send communications electronically if the renter agrees, and it cannot refuse a rental or lease agreement just because the renter does not want electronic communications.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.22. A rental company shall send communications to a renter electronically if the renter agrees to that communication in the rental or lease agreement. A rental company shall not deny a rental or lease agreement if the renter chooses not to receive communications electronically. For purposes of this section, “electronically” does not include a cellular telephone. (Added by Stats. 2018, Ch. 344, Sec. 1. (AB 2620) Effective January 1, 2019.)
1939.23.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company generally may not use electronic surveillance data from a rental vehicle, except in listed situations, and must keep certain activation records when it does use that technology.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.23. (a) A rental company shall not use, access, or obtain any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology, except in the following circumstances: (1) (A) When the equipment is used by the rental company only for the purpose of locating a stolen, abandoned, or missing rental vehicle after one of the following: (i) The renter or law enforcement has informed the rental company that the vehicle is missing or has been stolen or abandoned. (ii) If the rental vehicle has not been returned following 24 hours after the contracted return date or by 24 hours following the end of an extension of that return date, the rental company may activate electronic surveillance technology. The rental company shall provide notice of activation of the electronic surveillance technology 24 hours before activation, by telephone and electronically pursuant to Section 1939.22, unless the renter has not provided a telephone number or the renter has not agreed to electronic communication pursuant to Section 1939.22. The rental or lease agreement shall advise the renter that electronic surveillance technology may be activated if the rental vehicle has not been returned within 24 hours after the contracted return date or extension of the return date. The renter shall acknowledge this advisement in the rental or lease agreement by initials. The advisement shall also be made orally to the renter at the time of executing the rental or lease agreement if the transaction is completed in person or by telephone. The advisements are not required to be made to members of the rental company’s membership program executing a rental or lease agreement. However, a renter shall be given those advisements upon enrolling in the rental company’s membership program. (iii) Notwithstanding clause (ii), if the rental vehicle has not been returned following one week after the contracted return date or by one week following the end of an extension of that return date. (iv) The rental company discovers the rental vehicle has been stolen or abandoned, and, if stolen, the rental company shall report the vehicle stolen to law enforcement by filing a stolen vehicle report, unless law enforcement has already informed the rental company that the vehicle is missing or has been stolen or abandoned. (v) The rental vehicle is the subject of an AMBER Alert issued pursuant to Section 8594 of the Government Code. If the rental company uses the equipment in connection with this provision relating to an AMBER Alert, the rental company shall notify law enforcement that one of the rental company’s vehicles is the subject of an AMBER Alert upon becoming aware of the situation, unless law enforcement has already informed the rental company that the vehicle was the subject of an AMBER Alert. (B) If electronic surveillance technology is activated pursuant to subparagraph (A), a rental company shall maintain a record, in either electronic or written form, of information relevant to the activation of that technology. That information shall include the rental agreement, including the return date, and the date and time the electronic surveillance technology was activated. The record shall also include, if relevant, a record of written or other communication with the renter, including communications regarding extensions of the rental, police reports, or other written communication with law enforcement officials. The record shall be maintained for a period of at least 12 months from the time the record is created and shall be made available upon the renter’s request. The rental company shall maintain and furnish explanatory codes necessary to read the record. A rental company shall not be required to maintain a record if electronic surveillance technology is activated to recover a rental vehicle that is stolen or missing at a time other than during a rental period. (2) In response to a specific request from law enforcement pursuant to a subpoena or search warrant. (3) The rental company uses geofence technology to detect the movement of a rental vehicle in either of the following circumstances: (A) The rental vehicle is moved outside of the country, if travel outside of the country is not authorized by the rental agreement. (B) The rental vehicle is moved into an impound or tow yard. The rental company shall notify the renter that the vehicle has been detected within an impound or tow yard. If the vehicle remains within the perimeter of the impound or tow yard for 24 hours after the notification, the vehicle shall be deemed abandoned by the renter. (b) Subdivision (a) does not prohibit a rental company from equipping rental vehicles with any of the following: (1) GPS-based technology that provides navigation assistance to the occupants of the rental vehicle, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology, except for the purposes of discovering or repairing a defect in the technology and the information may then be used only for that purpose. (2) Electronic surveillance technology that allows for the remote locking or unlocking of the vehicle at the request of the renter, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology, except as necessary to lock or unlock the vehicle. (3) Electronic surveillance technology that allows the company to provide roadside assistance, such as towing, flat tire, or fuel services, at the request of the renter, if the rental company does not use, access, or obtain information relating to the renter’s use of the rental vehicle that was obtained using that technology except as necessary to provide the requested roadside assistance. (c) Subdivision (a) does not prohibit a rental company from obtaining, accessing, or using information from electronic surveillance technology for the sole purpose of determining the date and time the vehicle departs from and is returned to the rental company, and the total mileage driven and the vehicle fuel level of the returned vehicle. The information obtained or accessed from this electronic surveillance technology shall only be used for the purpose described in this subdivision. (d) A rental company shall not use electronic surveillance technology to track a renter in order to impose fines or surcharges relating to the renter’s use of the rental vehicle. (Amended by Stats. 2025, Ch. 449, Sec. 2. (AB 1197) Effective January 1, 2026.)
1939.25.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A renter may sue a rental company for damages and equitable relief for violations of this chapter, except for specified sections. The prevailing party may recover reasonable attorney’s fees and costs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.25. A renter may bring an action against a rental company for the recovery of damages and appropriate equitable relief for a violation of this chapter, except for Sections 1939.21, 1939.35, and 1939.37. The prevailing party shall be entitled to recover reasonable attorney’s fees and costs. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.27.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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If a rental company sues a renter for loss from vehicle theft, it must file the action in the county where the renter lives, or in the renter’s jurisdiction if the renter does not live in this state.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.27. A rental company that brings an action against a renter for loss due to theft of the vehicle shall bring the action in the county in which the renter resides or, if the renter is not a resident of this state, in the jurisdiction in which the renter resides. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.29.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A waiver of most rules in this chapter is void and unenforceable, except for Sections 1939.21, 1939.35, and 1939.37.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.29. A waiver of any of the provisions of this chapter, except for Sections 1939.21, 1939.35, and 1939.37, shall be void and unenforceable as contrary to public policy. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.31.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies must give enrolled members certain written disclosures before the first rental and a printed notice at the start of each rental period.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.31. (a) A rental company’s disclosure requirements shall be satisfied for renters who are enrolled in the rental company’s membership program if all of the following conditions are met: (1) Prior to the enrollee’s first rental as a participant in the program, the renter receives, in writing, the following: (A) All of the disclosures required by paragraph (1) of subdivision (c) of Section 1939.09, including the terms and conditions of the rental agreement then in effect. (B) An internet website address, as well as a contact number or address, where the enrollee can learn of changes to the rental agreement or to the laws of this state governing rental agreements since the effective date of the rental company’s most recent restatement of the rental agreement and distribution of that restatement to its members. (2) At the commencement of each rental period, the renter is provided, on the rental record or the folder in which it is inserted, with a printed notice stating that the renter had either previously selected or declined an optional damage waiver and that the renter has the right to change preferences. (b) This section does not relieve the rental company from the disclosures required to be made within the text of a contract or holder in which the contract is placed; in or on an advertisement containing a rental rate; or in a telephonic, in-person, or computer-transmitted quotation or reservation. (Amended by Stats. 2021, Ch. 415, Sec. 3. (AB 901) Effective January 1, 2022.)
1939.33.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company that rents a vehicle in California to a nonresident foreign renter and sells liability insurance in connection with the rental must accept service of process in the specified way and send copies to the renter within 30 days.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.33. (a) When a rental company enters into a rental agreement in the state for the rental of a vehicle to any renter who is not a resident of this country and, as part of, or associated with, the rental agreement, the renter purchases liability insurance, as defined in subdivision (b) of Section 1758.85 of the Insurance Code, from the rental company in its capacity as a rental vehicle agent for an authorized insurer, the rental company shall be authorized to accept, and, if served as set forth in this section, shall accept, service of a summons and complaint and any other required documents against the foreign renter for any accident or collision resulting from the operation of the rental vehicle within the state during the rental period. If the rental company has a registered agent for service of process on file with the Secretary of State, process shall be served on the rental company’s registered agent, either by first-class mail, return receipt requested, or by personal service. (b) Within 30 days of acceptance of service of process, the rental company shall provide a copy of the summons and complaint and any other required documents served in accordance with this section to the foreign renter by first-class mail, return receipt requested. (c) Any plaintiff, or his or her representative, who elects to serve the foreign renter by delivering a copy of the summons and complaint and any other required documents to the rental company pursuant to subdivision (a) shall agree to limit his or her recovery against the foreign renter and the rental company to the limits of the protection extended by the liability insurance. (d) Notwithstanding the requirements of Sections 17450 to 17456, inclusive, of the Vehicle Code, service of process in compliance with subdivision (a) shall be deemed a valid and effective service. (e) Notwithstanding any other law, the requirement that the rental company accept service of process pursuant to subdivision (a) shall not create any duty, obligation, or agency relationship other than that provided in subdivision (a). (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.35.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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Rental companies must give 15-passenger van renters a safety advisory, and renters must acknowledge receiving it. If the van is rented for business use, the company must also state that only properly licensed employees may drive it, and the renter must acknowledge that notice too.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.35. (a) (1) A rental company shall provide a renter of a 15-passenger van with a copy of the United States Department of Transportation, National Highway Traffic Safety Administration’s consumer advisory for 15-passenger vans titled “Reducing the Risk of Rollover Crashes” or, if that advisory is updated, a copy of the updated advisory. The renter shall acknowledge receipt of that copy by signing an acknowledgment of receipt on the rental agreement or on an attached form. (2) If the rental of that 15-passenger van is for a business purpose or use, the rental company shall also provide on the document described in paragraph (1) that only an employee with the proper licensing may drive that vehicle. The renter shall acknowledge the receipt thereof in the same manner as described in paragraph (1). (b) (1) Except as provided in paragraph (2), for purposes of this section, a “15-passenger van” means any van manufactured to accommodate 15 passengers, including the driver, regardless of whether that van has been altered to accommodate fewer than 15 passengers. (2) For purposes of this section, a “15-passenger van” does not mean a 15-passenger van with dual rear wheels that has a gross weight rating equal to, or greater than, 11,500 pounds. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.37.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A rental company is exempt from Vehicle Code section 14608 when the rental is under a membership agreement that lets the renter access the vehicle without a key.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.37. A rental company is not subject to the requirements of Section 14608 of the Vehicle Code if the rental is subject to the terms of a membership agreement that allows the renter to gain physical access to a vehicle without a key through use of a code, key card, or by other means that allow the vehicle to be accessed at a remote location, or at a business location of the rental company outside of that location’s regular hours of operation. (Added by Stats. 2016, Ch. 183, Sec. 5. (AB 2051) Effective January 1, 2017.)
1939.38.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A commercial airport facility may regulate airport access and require certain vehicle-sharing or rental programs to collect a customer facility charge. Before facilitating vehicle sharing or renting, covered programs, persons, or entities must obtain a permit or written authorization from the airport operator.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.38. (a) Notwithstanding any other law, a commercial airport facility may regulate access to an airport and require any person or entity described in subdivision (m) of Section 1939.01 to collect a customer facility charge pursuant to Section 50474.21 of the Government Code. (b) (1) Before facilitating the sharing or renting of vehicles, any program, person, or entity described in subdivision (m) of Section 1939.01 shall obtain a permit or other written authorization from the airport operator that sets forth the terms, standards, regulations, procedures, fees, and access requirements for the activity. (2) For purposes of paragraph (1), “facilitating the sharing or renting of vehicles” includes listing, publishing, or advertising vehicles or motor vehicles parked on airport property or at airport facilities. (c) This section shall not affect the authority of any political subdivision or the state to do any of the following: (1) Regulate access to an airport it owns or operates. (2) Enter into written agreements. (3) Set access fees or permit requirements. (4) Regulate existing airport access permits granted by an airport to personal vehicle sharing programs. (d) This section shall become operative on July 1, 2024. (Added by Stats. 2023, Ch. 547, Sec. 2. (AB 893) Effective January 1, 2024. Operative July 1, 2024, by its own provisions.)
1939.39.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. )
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A personal vehicle sharing program may not let a vehicle be listed for rental on its platform unless the required tax certification is completed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 1.5. Rental Passenger Vehicle Transactions [1939.01 - 1939.39] ( Chapter 1.5 added by Stats. 2016, Ch. 183, Sec. 5. ) ## 1939.39. On and after July 1, 2024, a personal vehicle sharing program shall not allow a vehicle to be placed on a digital network or software application of the personal vehicle sharing program for the purpose of making the vehicle available for rental through the personal vehicle sharing program unless the certification described in subdivision (a) or (b), as applicable, is fulfilled: (a) If the request is to list a motor vehicle that was purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred: (1) All sales and use taxes were paid on the purchase price of the motor vehicle. (2) The purchaser elected to have sales and use taxes collected on receipts from renting the motor vehicle in lieu of paying applicable taxes on the purchase price of the motor vehicle. (3) The purchase of the motor vehicle was not subject to taxation due to an exemption available under law. (b) If the request is to list a motor vehicle that was not purchased in California, and that motor vehicle would first be made available for sharing on or after July 1, 2024, certification that one of the following occurred: (1) Applicable taxes were paid on the purchase price of the vehicle. (2) Applicable taxes were not paid on the purchase price of the vehicle. (Added by Stats. 2023, Ch. 547, Sec. 3. (AB 893) Effective January 1, 2024.)
1940.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section applies the chapter to people who hire dwelling units in California, but excludes certain hotel, motel, and similar transient occupancies.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940. (a) Except as provided in subdivision (b), this chapter shall apply to all persons who hire dwelling units located within this state including tenants, lessees, boarders, lodgers, and others, however denominated. (b) The term “persons who hire” shall not include a person who maintains either of the following: (1) Transient occupancy in a hotel, motel, residence club, or other facility when the transient occupancy is or would be subject to tax under Section 7280 of the Revenue and Taxation Code. The term “persons who hire” shall not include a person to whom this paragraph pertains if the person has not made valid payment for all room and other related charges owing as of the last day on which his or her occupancy is or would be subject to tax under Section 7280 of the Revenue and Taxation Code. (2) Occupancy at a hotel or motel where the innkeeper retains a right of access to and control of the dwelling unit and the hotel or motel provides or offers all of the following services to all of the residents: (A) Facilities for the safeguarding of personal property pursuant to Section 1860. (B) Central telephone service subject to tariffs covering the same filed with the California Public Utilities Commission. (C) Maid, mail, and room services. (D) Occupancy for periods of less than seven days. (E) Food service provided by a food establishment, as defined in Section 113780 of the Health and Safety Code, located on or adjacent to the premises of the hotel or motel and owned or operated by the innkeeper or owned or operated by a person or entity pursuant to a lease or similar relationship with the innkeeper or person or entity affiliated with the innkeeper. (c) “Dwelling unit” means a structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. (d) Nothing in this section shall be construed to limit the application of any provision of this chapter to tenancy in a dwelling unit unless the provision is so limited by its specific terms. (Amended by Stats. 1996, Ch. 1023, Sec. 28. Effective September 29, 1996.)
1940.05.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For this chapter, “immigration or citizenship status” also covers perceived status and association with someone who has or is perceived to have that status.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.05. For purposes of this chapter, “immigration or citizenship status” includes a perception that the person has a particular immigration status or citizenship status, or that the person is associated with a person who has, or is perceived to have, a particular immigration status or citizenship status. (Added by Stats. 2017, Ch. 489, Sec. 2. (AB 291) Effective January 1, 2018.)
1940.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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No person may require a residential hotel occupant to move or re-register before 30 days if the purpose is to preserve transient occupancy status.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.1. (a) No person may require an occupant of a residential hotel, as defined in Section 50519 of the Health and Safety Code, to move, or to check out and reregister, before the expiration of 30 days occupancy if a purpose is to have that occupant maintain transient occupancy status pursuant to paragraph (1) of subdivision (b) of Section 1940. Evidence that an occupant was required to check out and reregister shall create a rebuttable presumption, which shall affect solely the burden of producing evidence, of the purpose referred to in this subdivision. (b) In addition to any remedies provided by local ordinance, any violation of subdivision (a) is punishable by a civil penalty of five hundred dollars ($500). In any action brought pursuant to this section, the prevailing party shall be entitled to reasonable attorney’s fees. (c) Nothing in this section shall prevent a local governing body from establishing inspection authority or reporting or recordkeeping requirements to ensure compliance with this section. (Amended by Stats. 2004, Ch. 950, Sec. 1. Effective January 1, 2005.)
1940.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section requires landlords to let tenants do personal agriculture in approved portable containers in the tenant’s private area if the stated conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.10. (a) For the purposes of this section, the following definitions shall apply: (1) “Private area” means an outdoor backyard area that is on the ground level of the rental unit. (2) “Personal agriculture” means a use of land where an individual cultivates edible plant crops for personal use or donation. (3) “Plant crop” means any crop in its raw or natural state, which comes from a plant that will bear edible fruits or vegetables. It shall not include marijuana or any unlawful crops or substances. (b) A landlord shall permit a tenant to participate in personal agriculture in portable containers approved by the landlord in the tenant’s private area if the following conditions are met: (1) The tenant regularly removes any dead plant material and weeds, with the exception of straw, mulch, compost, and any other organic materials intended to encourage vegetation and retention of moisture in soil, unless the landlord and tenant have a preexisting or separate agreement regarding garden maintenance where the tenant is not responsible for removing or maintaining plant crop and weeds. (2) The plant crop will not interfere with the maintenance of the rental property. (3) The placement of the portable containers does not interfere with any tenant’s parking spot. (4) The placement and location of the portable containers may be determined by the landlord. The portable containers may not create a health and safety hazard, block doorways, or interfere with walkways or utility services or equipment. (c) The cultivation of plant crops on the rental property other than that which is contained in portable containers shall be subject to approval from the landlord. (d) A landlord may prohibit the use of synthetic chemical herbicides, pesticides, fungicides, rodenticides, insecticides, or any other synthetic chemical product commonly used in the growing of plant crops. (e) A landlord may require the tenant to enter into a written agreement regarding the payment of any excess water and waste collection bills arising from the tenant’s personal agriculture activities. (f) Subject to the notice required by Section 1954, a landlord has a right to periodically inspect any area where the tenant is engaging in personal agriculture to ensure compliance with this section. (g) This section shall only apply to residential real property that is improved with, or consisting of, a building containing not more than two units that are intended for human habitation. (Added by Stats. 2014, Ch. 584, Sec. 2. (AB 2561) Effective January 1, 2015.)
1940.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord may not use harassment or related misconduct to make a tenant move out, and a prevailing tenant can recover up to $2,000 per violation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.2. (a) It is unlawful for a landlord to do any of the following for the purpose of influencing a tenant to vacate a dwelling: (1) Engage in conduct that violates subdivision (a) of Section 484 of the Penal Code. (2) Engage in conduct that violates Section 518 of the Penal Code. (3) Use, or threaten to use, force, willful threats, or menacing conduct constituting a course of conduct that interferes with the tenant’s quiet enjoyment of the premises in violation of Section 1927 that would create an apprehension of harm in a reasonable person. Nothing in this paragraph requires a tenant to be actually or constructively evicted in order to obtain relief. (4) Commit a significant and intentional violation of Section 1954. (5) Threaten to disclose information regarding or relating to the immigration or citizenship status of a tenant, occupant, or other person known to the landlord to be associated with a tenant or occupant. This paragraph does not require a tenant to be actually or constructively evicted in order to obtain relief. (b) A tenant who prevails in a civil action, including an action in small claims court, to enforce his or her rights under this section is entitled to a civil penalty in an amount not to exceed two thousand dollars ($2,000) for each violation. (c) An oral or written warning notice, given in good faith, regarding conduct by a tenant, occupant, or guest that violates, may violate, or violated the applicable rental agreement, rules, regulations, lease, or laws, is not a violation of this section. An oral or written explanation of the rental agreement, rules, regulations, lease, or laws given in the normal course of business is not a violation of this section. (d) This section does not enlarge or diminish a landlord’s right to terminate a tenancy pursuant to existing state or local law; nor does this section enlarge or diminish any ability of local government to regulate or enforce a prohibition against a landlord’s harassment of a tenant. (Amended by Stats. 2017, Ch. 489, Sec. 3. (AB 291) Effective January 1, 2018.)
1940.20.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant may use a clothesline or drying rack in the tenant’s private area if the listed conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.20. (a) For purposes of this section, the following definitions shall apply: (1) “Clothesline” includes a cord, rope, or wire from which laundered items may be hung to dry or air. A balcony, railing, awning, or other part of a structure or building shall not qualify as a clothesline. (2) “Drying rack” means an apparatus from which laundered items may be hung to dry or air. A balcony, railing, awning, or other part of a structure or building shall not qualify as a drying rack. (3) “Private area” means an outdoor area or an area in the tenant’s premises enclosed by a wall or fence with access from a door of the premises. (b) A tenant may utilize a clothesline or drying rack in the tenant’s private area if all of the following conditions are met: (1) The clothesline or drying rack will not interfere with the maintenance of the rental property. (2) The clothesline or drying rack will not create a health or safety hazard, block doorways, or interfere with walkways or utility service equipment. (3) The tenant seeks the landlord’s consent before affixing a clothesline to a building. (4) Use of the clothesline or drying rack does not violate reasonable time or location restrictions imposed by the landlord. (5) The tenant has received approval of the clothesline or drying rack, or the type of clothesline or drying rack, from the landlord. (Added by Stats. 2015, Ch. 602, Sec. 1. (AB 1448) Effective January 1, 2016.)
1940.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Public entities cannot force landlords to act on tenants’ immigration or citizenship status, and landlords generally may not ask for, require, or disclose that status in the ways listed here.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.3. (a) A public entity shall not, by ordinance, regulation, policy, or administrative action implementing any ordinance, regulation, policy, or administrative action, compel a landlord or any agent of the landlord to make any inquiry, compile, disclose, report, or provide any information, prohibit offering or continuing to offer, accommodations in the property for rent or lease, or otherwise take any action regarding or based on the immigration or citizenship status of a tenant, prospective tenant, occupant, or prospective occupant of residential rental property. (b) A landlord, or any agent of the landlord, shall not do any of the following: (1) Make any inquiry regarding or based on the immigration or citizenship status of a tenant, prospective tenant, occupant, or prospective occupant of residential rental property. (2) Require that any tenant, prospective tenant, occupant, or prospective occupant of the rental property disclose or make any statement, representation, or certification concerning his or her immigration or citizenship status. (3) Disclose to any person or entity information regarding or relating to the immigration or citizenship status of any tenant, prospective tenant, occupant, or prospective occupant of the rental property for the purpose of, or with the intent of, harassing or intimidating a tenant, prospective tenant, occupant, or prospective occupant, retaliating against a tenant or occupant for the exercise of his or her rights, influencing a tenant or occupant to vacate a dwelling, or recovering possession of the dwelling. (c) This section does not prohibit a landlord from doing any of the following: (1) Complying with any legal obligation under federal law, including, but not limited to, any legal obligation under any federal government program that provides for rent limitations or rental assistance to a qualified tenant, or a subpoena, warrant, or other order issued by a court. (2) Requesting information or documentation necessary to determine or verify the financial qualifications of a prospective tenant, or to determine or verify the identity of a prospective tenant or prospective occupant. (d) For purposes of this section, both of the following shall apply: (1) “Public entity” includes the state, a city, county, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state. (2) “State” includes any state office, department, division, bureau, board, or commission and the Trustees of the California State University and the California State University. (Amended by Stats. 2017, Ch. 490, Sec. 1.5. (AB 299) Effective January 1, 2018.)
1940.35.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord may not disclose a tenant’s immigration or citizenship information to government agencies for harassment, retaliation, coercion to move, or to recover the dwelling, unless a federal legal obligation or court process requires it.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.35. (a) It is unlawful for a landlord to disclose to any immigration authority, law enforcement agency, or local, state, or federal agency information regarding or relating to the immigration or citizenship status of any tenant, occupant, or other person known to the landlord to be associated with a tenant or occupant, for the purpose of, or with the intent of, harassing or intimidating a tenant or occupant, retaliating against a tenant or occupant for the exercise of his or her rights, influencing a tenant or occupant to vacate a dwelling, or recovering possession of the dwelling, irrespective of whether the tenant or occupant currently resides in the dwelling. (b) If a court of applicable jurisdiction finds a violation of this section in a proceeding initiated by a party or upon a motion of the court, the court shall do all of the following: (1) For each person whose status was so disclosed, order the landlord to pay statutory damages in an amount to be determined in the court’s discretion that is between 6 and 12 times the monthly rent charged for the dwelling in which the tenant or occupant resides or resided. (2) Issue injunctive relief to prevent the landlord from engaging in similar conduct with respect to other tenants, occupants, and persons known to the landlord to be associated with the tenants or occupants. (3) Notify the district attorney of the county in which the real property for hire is located of a potential violation of Section 519 of the Penal Code. (c) A landlord is not in violation of this section if he or she is complying with any legal obligation under federal law, or subpoena, warrant, or order issued by a court. (d) In making findings in a proceeding under this section, a court may take judicial notice under subdivision (d) of Section 452 of the Evidence Code of the proceedings and records of any federal removal, inadmissibility, or deportation proceeding. (e) A court shall award to the prevailing party in an action under this section attorney’s fees and costs. (f) The remedies provided by this section shall be in addition to any other remedies provided by statutory or decisional law. (g) Any waiver of a right under this section by a tenant, occupant, or person known to the landlord to be associated with a tenant or occupant shall be void as a matter of public policy. (h) An action for injunctive relief pursuant to this section may be brought by a nonprofit organization exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code, as amended. That organization shall be considered a party for purposes of this section. (Added by Stats. 2017, Ch. 489, Sec. 5. (AB 291) Effective January 1, 2018.)
1940.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords generally may not stop tenants from posting political signs, but there are listed exceptions. Tenants must follow local sign-timing rules and are responsible for local ordinance violations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.4. (a) Except as provided in subdivision (c), a landlord shall not prohibit a tenant from posting or displaying political signs relating to any of the following: (1) An election or legislative vote, including an election of a candidate to public office. (2) The initiative, referendum, or recall process. (3) Issues that are before a public commission, public board, or elected local body for a vote. (b) Political signs may be posted or displayed in the window or on the door of the premises leased by the tenant in a multifamily dwelling, or from the yard, window, door, balcony, or outside wall of the premises leased by a tenant of a single-family dwelling. (c) A landlord may prohibit a tenant from posting or displaying political signs in the following circumstances: (1) The political sign is more than six square feet in size. (2) The posting or displaying would violate a local, state, or federal law. (3) The posting or displaying would violate a lawful provision in a common interest development governing a document that satisfies the criteria of Section 1353.6. (d) A tenant shall post and remove political signs in compliance with the time limits set by the ordinance for the jurisdiction where the premises are located. A tenant shall be solely responsible for any violation of a local ordinance. If no local ordinance exists or if the local ordinance does not include a time limit for posting and removing political signs on private property, the landlord may establish a reasonable time period for the posting and removal of political signs. A reasonable time period for this purpose shall begin at least 90 days prior to the date of the election or vote to which the sign relates and end at least 15 days following the date of the election or vote. (e) Notwithstanding any other provision of law, any changes in the terms of a tenancy that are made to implement the provisions of this section and are noticed pursuant to Section 827 shall not be deemed to cause a diminution in housing services, and may be enforced in accordance with Section 1161 of the Code of Civil Procedure. (Added by Stats. 2011, Ch. 383, Sec. 1. (SB 337) Effective January 1, 2012.)
1940.41.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord generally may not stop a tenant from owning a personal micromobility device or from storing and recharging one in the dwelling unit, subject to listed safety and insurance conditions and several exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.41. (a) For purposes of this section: (1) “Personal micromobility device” means a device with both of the following characteristics: (A) It is powered by the physical exertion of the rider or an electric motor. (B) It is designed to transport one individual or one adult accompanied by up to three minors. (2) “Secure, long-term storage” means a location with all of the following characteristics: (A) Access is limited to residents of the same housing complex. (B) It is located on the premises. (C) It is reasonably protected against precipitation. (D) It has a minimum of one standard electrical connection for each personal micromobility device that will be stored and recharged in that location. (E) Tenants are not charged for its use. (b) A landlord shall not prohibit a tenant from either of the following: (1) Owning personal micromobility devices. (2) (A) Storing and recharging up to one personal micromobility device in their dwelling unit for each person occupying the unit if the personal micromobility device meets one of the following: (i) Is not powered by an electric motor. (ii) Complies with the following safety standards: (I) For e-bikes, UL 2849, the Standard for Electrical Systems for E-bikes, as recognized by the United States Consumer Product Safety Commission, or EN 15194, the European Standard for electrically powered assisted cycles (EPAC Bicycles). (II) For e-scooters, UL 2272, the Standard for Electrical Systems for Personal E-Mobility Devices, as recognized by the United States Consumer Product Safety Commission, or EN 17128, the European Standard for personal light electric vehicles (PLEV). (iii) Is insured by the tenant under an insurance policy covering storage of the device within the tenant’s dwelling unit. The owner may prohibit the tenant from charging a device in the unit if the device does not meet the standards in subclauses (I) and (II) of clause (ii). (B) Subparagraph (A) does not apply if the landlord provides the tenant secure, long-term storage for the tenant’s personal micromobility devices. (C) Subparagraphs (A) and (B) do not apply to circumstances in which an occupant of the unit requires the use of a personal micromobility device as an accommodation for a disability. (c) This section does not require a landlord to modify or approve a tenant’s request to modify a rental dwelling unit for the purpose of storing a micromobility device inside of the dwelling unit. (d) This section does not prohibit a landlord from doing any of the following: (1) (A) Prohibiting repair or maintenance on batteries and motors of personal micromobility devices within a dwelling unit. (B) Subparagraph (A) does not prohibit a tenant from changing a flat tire or adjusting the brakes on a personal micromobility device within the unit. (2) Requiring a tenant to store a personal micromobility device in compliance with applicable fire code. (3) Requiring a tenant to store a personal micromobility device in compliance with the Office of State Fire Marshal Information Bulletin 23-003 regarding lithium-ion battery safety, issued April 3, 2023, or any updated guidance issued by the Office of the State Fire Marshal regarding lithium-ion battery safety, if such bulletin or guidance is provided to the tenant by the landlord. (e) This section does not limit the rights and remedies available to disabled persons under federal or state law. (Added by Stats. 2023, Ch. 630, Sec. 1. (SB 712) Effective January 1, 2024.)
1940.45.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A property owner generally may not enforce or adopt a restriction that bars religious items from being displayed on a dwelling’s entry door or frame.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.45. (a) Except as otherwise provided by this section, a property owner shall not enforce or adopt a restrictive covenant or any other restriction that prohibits one or more religious items from being displayed or affixed on any entry door or entry door frame of a dwelling. (b) To the extent permitted by Article 1, Section 4, of the California Constitution and the First Amendment to the United States Constitution, this section does not prohibit the enforcement or adoption of a restrictive covenant or other restriction prohibiting the display or affixing of a religious item on any entry door or entry door frame to a dwelling that: (1) Threatens the public health or safety. (2) Hinders the opening or closing of any entry door. (3) Violates any federal, state, or local law. (4) Contains graphics, language or any display that is obscene or otherwise illegal. (5) Individually or in combination with any other religious item displayed or affixed on any entry door or door frame that has a total size greater than 36 by 12 square inches, provided it does not exceed the size of the door. (c) As used in this section, the following terms have the following meanings: (1) “Property owner” means all of the following: (A) An association, as that term is defined in Section 4080. (B) A board, as that term is defined in Section 4085. (C) A member, as that term is defined in Section 4160. (D) A landlord, as that term is defined in Section 1940.8.5. (E) A sublessor. (2) “Religious item” means an item displayed because of sincerely held religious beliefs. (Added by Stats. 2019, Ch. 154, Sec. 1. (SB 652) Effective January 1, 2020.)
1940.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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An owner or agent generally may not refuse to rent or keep renting to a qualified tenant just because the tenant has a waterbed, if the section’s insurance, notice, safety, and installation rules are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.5. An owner or an owner’s agent shall not refuse to rent a dwelling unit in a structure which received its valid certificate of occupancy after January 1, 1973, to an otherwise qualified prospective tenant or refuse to continue to rent to an existing tenant solely on the basis of that tenant’s possession of a waterbed or other bedding with liquid filling material where all of the following requirements and conditions are met: (a) A tenant or prospective tenant furnishes to the owner, prior to installation, a valid waterbed insurance policy or certificate of insurance for property damage. The policy shall be issued by a company licensed to do business in California and possessing a Best’s Insurance Report rating of “B” or higher. The insurance policy shall be maintained in full force and effect until the bedding is permanently removed from the rental premises. The policy shall be written for no less than one hundred thousand dollars ($100,000) of coverage. The policy shall cover, up to the limits of the policy, replacement value of all property damage, including loss of use, incurred by the rental property owner or other caused by or arising out of the ownership, maintenance, use, or removal of the waterbed on the rental premises only, except for any damage caused intentionally or at the direction of the insured, or for any damage caused by or resulting from fire. The owner may require the tenant to produce evidence of insurance at any time. The carrier shall give the owner notice of cancellation or nonrenewal 10 days prior to this action. Every application for a policy shall contain the information as provided in subdivisions (a), (b), and (c) of Section 1962 and Section 1962.5. (b) The bedding shall conform to the pounds-per-square foot weight limitation and placement as dictated by the floor load capacity of the residential structure. The weight shall be distributed on a pedestal or frame which is substantially the dimensions of the mattress itself. (c) The tenant or prospective tenant shall install, maintain and remove the bedding, including, but not limited to, the mattress and frame, according to standard methods of installation, maintenance, and removal as prescribed by the manufacturer, retailer, or state law, whichever provides the higher degree of safety. The tenant shall notify the owner or owner’s agent in writing of the intent to install, remove, or move the waterbed. The notice shall be delivered 24 hours prior to the installation, removal, or movement. The owner or the owner’s agent may be present at the time of installation, removal, or movement at the owner’s or the owner’s agent’s option. If the bedding is installed or moved by any person other than the tenant or prospective tenant, the tenant or prospective tenant shall deliver to the owner or to the owner’s agent a written installation receipt stating the installer’s name, address, and business affiliation where appropriate. (d) Any new bedding installation shall conform to the owner’s or the owner’s agent’s reasonable structural specifications for placement within the rental property and shall be consistent with floor capacity of the rental dwelling unit. (e) The tenant or prospective tenant shall comply with the minimum component specification list prescribed by the manufacturer, retailer, or state law, whichever provides the higher degree of safety. (f) Subject to the notice requirements of Section 1954, the owner, or the owner’s agent, shall have the right to inspect the bedding installation upon completion, and periodically thereafter, to insure its conformity with this section. If installation or maintenance is not in conformity with this section, the owner may serve the tenant with a written notice of breach of the rental agreement. The owner may give the tenant three days either to bring the installation into conformity with those standards or to remove the bedding, unless there is an immediate danger to the structure, in which case there shall be immediate corrective action. If the bedding is installed by any person other than the tenant or prospective tenant, the tenant or prospective tenant shall deliver to the owner or to the owner’s agent a written installation receipt stating the installer’s name and business affiliation where appropriate. (g) Notwithstanding Section 1950.5, an owner or owner’s agent is entitled to increase the security deposit on the dwelling unit in an amount equal to one-half of one months’ rent. The owner or owner’s agent may charge a tenant, lessee, or sublessee a reasonable fee to cover administration costs. In no event does this section authorize the payment of a rebate of premium in violation of Article 5 (commencing with Section 750) of Chapter 1 of Part 2 of Division 1 of the Insurance Code. (h) Failure of the owner, or owner’s agent, to exercise any of his or her rights pursuant to this section does not constitute grounds for denial of an insurance claim. (i) As used in this section, “tenant” includes any lessee, and “rental” means any rental or lease. (Amended by Stats. 1996, Ch. 1137, Sec. 52. Effective January 1, 1997.)
1940.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Before seeking a demolition permit for a residential dwelling unit, the owner or the owner’s agent must give written notice to prospective and current tenants, include estimated demolition and tenancy-termination dates, and not demolish earlier than the noticed date.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.6. (a) The owner of a residential dwelling unit or the owner’s agent who applies to any public agency for a permit to demolish that residential dwelling unit shall give written notice of that fact to: (1) A prospective tenant prior to the occurrence of any of the following actions by the owner or the owner’s agent: (A) Entering into a rental agreement with a prospective tenant. (B) Requiring or accepting payment from the prospective tenant for an application screening fee, as provided in Section 1950.6. (C) Requiring or accepting any other fees from a prospective tenant. (D) Requiring or accepting any writings that would initiate a tenancy. (2) A current tenant, including a tenant who has entered into a rental agreement but has not yet taken possession of the dwelling unit, prior to applying to the public agency for the permit to demolish that residential dwelling unit. (b) The notice shall include the earliest possible approximate date on which the owner expects the demolition to occur and the approximate date on which the owner will terminate the tenancy. However, in no case may the demolition for which the owner or the owner’s agent has applied occur prior to the earliest possible approximate date noticed. (c) If a landlord fails to comply with subdivision (a) or (b), a tenant may bring an action in a court of competent jurisdiction. The remedies the court may order shall include, but are not limited to, the following: (1) In the case of a prospective tenant who moved into a residential dwelling unit and was not informed as required by subdivision (a) or (b), the actual damages suffered, moving expenses, and a civil penalty not to exceed two thousand five hundred dollars ($2,500) to be paid by the landlord to the tenant. (2) In the case of a current tenant who was not informed as required by subdivision (a) or (b), the actual damages suffered, and a civil penalty not to exceed two thousand five hundred dollars ($2,500) to be paid by the landlord to the tenant. (3) In any action brought pursuant to this section, the prevailing party shall be entitled to reasonable attorney’s fees. (d) The remedies available under this section are cumulative to other remedies available under law. (e) This section shall not be construed to preempt other laws regarding landlord obligations or disclosures, including, but not limited to, those arising pursuant to Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code. (f) For purposes of this section: (1) “Residential dwelling unit” has the same meaning as that contained in Section 1940. (2) “Public agency” has the same meaning as that contained in Section 21063 of the Public Resources Code. (Added by Stats. 2002, Ch. 285, Sec. 1. Effective January 1, 2003.)
1940.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A residential landlord who knows about former ordnance locations nearby must give written notice to a prospective tenant before the lease is signed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.7. (a) The Legislature finds and declares that the December 10, 1983, tragedy in Tierra Santa, in which lives were lost as a result of a live munition exploding in a residential area that was formerly a military ordnance location, has demonstrated (1) the unique and heretofore unknown risk that there are other live munitions in former ordnance locations in California, (2) that these former ordnance locations need to be identified by the federal, state, or local authorities, and (3) that the people living in the neighborhood of these former ordnance locations should be notified of their existence. Therefore, it is the intent of the Legislature that the disclosure required by this section is solely warranted and limited by (1) the fact that these former ordnance locations cannot be readily observed or discovered by landlords and tenants, and (2) the ability of a landlord who has actual knowledge of a former ordnance location within the neighborhood of his or her rental property to disclose this information for the safety of the tenant. (b) The landlord of a residential dwelling unit who has actual knowledge of any former federal or state ordnance locations in the neighborhood area shall give written notice to a prospective tenant of that knowledcge prior to the execution of a rental agreement. In cases of tenancies in existence on January 1, 1990, this written notice shall be given to tenants as soon as practicable thereafter. (c) For purposes of this section: (1) “Former federal or state ordnance location” means an area identified by an agency or instrumentality of the federal or state government as an area once used for military training purposes and which may contain potentially explosive munitions. (2) “Neighborhood area” means within one mile of the residential dwelling. (Added by Stats. 1989, Ch. 294, Sec. 2.)
1940.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A residential landlord must give each new tenant a copy of the pest control notice, but only if a periodic pest control contract has been executed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.8. A landlord of a residential dwelling unit shall provide each new tenant that occupies the unit with a copy of the notice provided by a registered structural pest control company pursuant to Section 8538 of the Business and Professions Code, if a contract for periodic pest control service has been executed. (Added by Stats. 2000, Ch. 234, Sec. 2. Effective January 1, 2001.)
1940.8.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords or their authorized agents must give tenants advance written notice before certain pesticide applications, and must post or deliver notice in specified ways depending on where and how the pesticide is applied.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.8.5. (a) For purposes of this section, the following terms have the following meanings: (1) “Adjacent dwelling unit” means a dwelling unit that is directly beside, above, or below a particular dwelling unit. (2) “Authorized agent” means an individual, organization, or other entity that has entered into an agreement with a landlord to act on the landlord’s behalf in relation to the management of a residential rental property. (3) “Broadcast application” means spreading pesticide over an area greater than two square feet. (4) “Electronic delivery” means delivery of a document by electronic means to the electronic address at or through which a tenant, landlord, or authorized agent has authorized electronic delivery. (5) “Landlord” means an owner of residential rental property. (6) “Pest” means a living organism that causes damage to property or economic loss, or transmits or produces diseases. (7) “Pesticide” means any substance, or mixture of substances, that is intended to be used for controlling, destroying, repelling, or mitigating any pest or organism, excluding antimicrobial pesticides as defined by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136(mm)). (8) “Licensed pest control operator” means anyone licensed by the state to apply pesticides. (b) (1) A landlord or authorized agent that applies any pesticide to a dwelling unit without a licensed pest control operator shall provide a tenant of that dwelling unit and, if making broadcast applications, or using total release foggers or aerosol sprays, any tenant in an adjacent dwelling unit that could reasonably be impacted by the pesticide use with written notice that contains the following statements and information using words with common and everyday meaning: (A) The pest or pests to be controlled. (B) The name and brand of the pesticide product proposed to be used. (C) “State law requires that you be given the following information: CAUTION – PESTICIDES ARE TOXIC CHEMICALS. The California Department of Pesticide Regulation and the United States Environmental Protection Agency allow the unlicensed use of certain pesticides based on existing scientific evidence that there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized. If within 24 hours following application of a pesticide, a person experiences symptoms similar to common seasonal illness comparable to influenza, the person should contact a physician, appropriate licensed health care provider, or the California Poison Control System (1-800-222-1222). For further information, contact any of the following: for Health Questions – the County Health Department (telephone number) and for Regulatory Information – the Department of Pesticide Regulation (916-324-4100).” (D) The approximate date, time, and frequency with which the pesticide will be applied. (E) The following notification: “The approximate date, time, and frequency of this pesticide application is subject to change.” (2) At least 24 hours prior to application of the pesticide to the dwelling unit, the landlord or authorized agent shall provide the notice to the tenant of the dwelling unit, as well as any tenants in adjacent units that are required to be notified pursuant to paragraph (1), in at least one of the following ways: (A) First-class mail. (B) Personal delivery to the tenant, someone of suitable age and discretion at the premises, or under the usual entry door of the premises. (C) Electronic delivery, if an electronic mailing address has been provided by the tenant. (D) Posting a written notice in a conspicuous place at the unit entry in a manner in which a reasonable person would discover the notice. (3) (A) Upon receipt of written notification, the tenant may agree in writing, or if notification was electronically delivered, the tenant may agree through electronic delivery, to allow the landlord or authorized agent to apply a pesticide immediately or at an agreed upon time. (B) (i) Prior to receipt of written notification, the tenant and the landlord or authorized agent may agree orally to an immediate pesticide application if a tenant requests that the pesticide be applied before 24-hour advance notice can be given. The oral agreement shall include the name and brand of the pesticide product proposed to be used. (ii) With respect to a tenant entering into an oral agreement for immediate pesticide application, the landlord or authorized agent, no later than the time of pesticide application, shall leave the written notice specified in paragraph (1) in a conspicuous place in the dwelling unit, or at the entrance of the unit in a manner in which a reasonable person would discover the notice. (iii) If any tenants in adjacent dwelling units are also required to be notified pursuant to this subdivision, the landlord or authorized agent shall provide those tenants with this notice as soon as practicable after the oral agreement is made authorizing immediate pesticide application, but in no case later than commencement of application of the pesticide. (4) (A) This subdivision shall not be construed to require an association, as defined in Section 4080, to provide notice of pesticide use in a separate interest, as defined in Section 4185, within a common interest development, as defined in Section 4100. (B) Notwithstanding subparagraph (A), an association, as defined in Section 4080, that has taken title to a separate interest, as defined in Section 4185, shall provide notification to tenants as specified in this subdivision. (c) (1) A landlord or authorized agent that applies any pesticide to a common area without a licensed pest control operator, excluding routine pesticide applications described in subdivision (d), shall post written notice in a conspicuous place in the common area in which a pesticide is to be applied that contains the following statements and information using words with common and everyday meaning: (A) The pest or pests to be controlled. (B) The name and brand of the pesticide product proposed to be used. (C) “State law requires that you be given the following information: CAUTION – PESTICIDES ARE TOXIC CHEMICALS. The California Department of Pesticide Regulation and the United States Environmental Protection Agency allow the unlicensed use of certain pesticides based on existing scientific evidence that there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized. If within 24 hours following application of a pesticide, a person experiences symptoms similar to common seasonal illness comparable to influenza, the person should contact a physician, appropriate licensed health care provider, or the California Poison Control System (1-800-222-1222). For further information, contact any of the following: for Health Questions – the County Health Department (telephone number) and for Regulatory Information – the Department of Pesticide Regulation (916-324-4100).” (D) The approximate date, time, and frequency with which the pesticide will be applied. (2) (A) The notice shall be posted before a pesticide application in a common area and shall remain posted for at least 24 hours after the pesticide is applied. (B) Landlords and their authorized agents are not liable for any notice removed from a common area without the knowledge or consent of the landlord or authorized agent. (C) If the pest poses an immediate threat to health and safety, thereby making compliance with notification prior to the pesticide application required in subparagraph (A) unreasonable, a landlord or authorized agent shall post the notification as soon as practicable, but not later than one hour after the pesticide is applied. (3) If a common area lacks a suitable place to post a notice, then the landlord shall provide the notice to each dwelling unit in at least one of the following ways: (A) First-class mail. (B) Personal delivery to the tenant, someone of suitable age and discretion at the premises, or under the usual entry door of the premises. (C) Electronic delivery, if an electronic mailing address has been provided by the tenant. (D) Posting a written notice in a conspicuous place at the unit entry in a manner in which a reasonable person would discover the notice. (4) This subdivision shall not be construed to require any landlord or authorized agent, or an association, as defined in Section 4080, to provide notice of pesticide use in common areas within a common interest development, as defined in Section 4100. (d) (1) A landlord or authorized agent that routinely applies pesticide in a common area on a set schedule without a licensed pest control operator shall provide a tenant in each dwelling unit with written notice that contains the following statements and information using words with common and everyday meaning: (A) The pest or pests to be controlled. (B) The name and brand of the pesticide product proposed to be used. (C) “State law requires that you be given the following information: CAUTION – PESTICIDES ARE TOXIC CHEMICALS. The California Department of Pesticide Regulation and the United States Environmental Protection Agency allow the unlicensed use of certain pesticides based on existing scientific evidence that there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized. If within 24 hours following application of a pesticide, a person experiences symptoms similar to common seasonal illness comparable to influenza, the person should contact a physician, appropriate licensed health care provider, or the California Poison Control System (1-800-222-1222). For further information, contact any of the following: for Health Questions – the County Health Department (telephone number) and for Regulatory Information – the Department of Pesticide Regulation (916-324-4100).” (D) The schedule pursuant to which the pesticide will be routinely applied. (2) (A) The landlord or authorized agent shall provide the notice to both of the following: (i) Existing tenants prior to the initial pesticide application. (ii) Each new tenant prior to entering into a lease agreement. (B) The landlord or authorized agent shall provide the notice to the tenant in at least one of the following ways: (i) First-class mail. (ii) Personal delivery to the tenant, someone of suitable age and discretion at the premises, or under the usual entry door of the premises. (iii) Electronic delivery, if an electronic mailing address has been provided by the tenant. (iv) Posting a written notice in a conspicuous place at the unit entry in a manner in which a reasonable person would discover the notice. (C) If the pesticide to be used is changed, a landlord or authorized agent shall provide a new notice pursuant to paragraph (1). (D) This subdivision shall not be construed to require any landlord or authorized agent, or an association, as defined in Section 4080, to provide notice of pesticide use in common areas within a common interest development, as defined in Section 4100. (e) Nothing in this section abrogates the responsibility of a registered structural pest control company to abide by the notification requirements of Section 8538 of the Business and Professions Code. (f) Nothing in this section authorizes a landlord or authorized agent to enter a tenant’s dwelling unit in violation of Section 1954. (g) If a tenant is provided notice in compliance with this section, a landlord or authorized agent is not required to provide additional information, and the information shall be deemed adequate to inform the tenant regarding the application of pesticides. (Added by Stats. 2015, Ch. 278, Sec. 2. (SB 328) Effective January 1, 2016.)
1940.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords who know a tenant’s meter serves outside the unit must disclose that before the tenancy starts or when discovered, and must use a written agreement or another written payment arrangement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1940.9. (a) If the landlord does not provide separate gas and electric meters for each tenant’s dwelling unit so that each tenant’s meter measures only the electric or gas service to that tenant’s dwelling unit and the landlord or his or her agent has knowledge that gas or electric service provided through a tenant’s meter serves an area outside the tenant’s dwelling unit, the landlord, prior to the inception of the tenancy or upon discovery, shall explicitly disclose that condition to the tenant and shall do either of the following: (1) Execute a mutual written agreement with the tenant for payment by the tenant of the cost of the gas or electric service provided through the tenant’s meter to serve areas outside the tenant’s dwelling unit. (2) Make other arrangements, as are mutually agreed in writing, for payment for the gas or electric service provided through the tenant’s meter to serve areas outside the tenant’s dwelling unit. These arrangements may include, but are not limited to, the landlord becoming the customer of record for the tenant’s meter, or the landlord separately metering and becoming the customer of record for the area outside the tenant’s dwelling unit. (b) If a landlord fails to comply with subdivision (a), the aggrieved tenant may bring an action in a court of competent jurisdiction. The remedies the court may order shall include, but are not limited to, the following: (1) Requiring the landlord to be made the customer of record with the utility for the tenant’s meter. (2) Ordering the landlord to reimburse the tenant for payments made by the tenant to the utility for service to areas outside of the tenant’s dwelling unit. Payments to be reimbursed pursuant to this paragraph shall commence from the date the obligation to disclose arose under subdivision (a). (c) Nothing in this section limits any remedies available to a landlord or tenant under other provisions of this chapter, the rental agreement, or applicable statutory or common law. (Added by Stats. 1989, Ch. 861, Sec. 1.)
1941.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section says when a dwelling is treated as untenantable and requires landlords to repair or replace recalled stoves or refrigerators within 30 days after notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.1. (a) A dwelling shall be deemed untenantable for purposes of Section 1941 if it substantially lacks any of the following affirmative standard characteristics or is a residential unit described in Section 17920.3 or 17920.10 of the Health and Safety Code: (1) Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors. (2) Plumbing or gas facilities that conformed to applicable law in effect at the time of installation, maintained in good working order. (3) A water supply approved under applicable law that is under the control of the tenant, capable of producing hot and cold running water, or a system that is under the control of the landlord, that produces hot and cold running water, furnished to appropriate fixtures, and connected to a sewage disposal system approved under applicable law. (4) Heating facilities that conformed with applicable law at the time of installation, maintained in good working order. (5) Electrical lighting, with wiring and electrical equipment that conformed with applicable law at the time of installation, maintained in good working order. (6) Building, grounds, and appurtenances at the time of the commencement of the lease or rental agreement, and all areas under control of the landlord, kept in every part clean, sanitary, and free from all accumulations of debris, filth, rubbish, garbage, rodents, and vermin. (7) An adequate number of appropriate receptacles for garbage and rubbish, in clean condition and good repair at the time of the commencement of the lease or rental agreement, with the landlord providing appropriate serviceable receptacles thereafter and being responsible for the clean condition and good repair of the receptacles under their control. (8) Floors, stairways, and railings maintained in good repair. (9) A locking mail receptacle for each residential unit in a residential hotel, as required by Section 17958.3 of the Health and Safety Code. This subdivision shall become operative on July 1, 2008. (10) Except as provided in subdivision (b), a stove that is maintained in good working order and capable of safely generating heat for cooking purposes. A stove that is subject to a recall by the manufacturer or a public entity is not capable of safely generating heat for cooking purposes. This paragraph shall only apply to a lease entered into, amended, or extended on or after January 1, 2026. (11) (A) Except as provided in subdivision (b) and subparagraph (B), a refrigerator that is maintained in good working order and capable of safely storing food. A refrigerator that is subject to recall by the manufacturer or a public entity is not capable of safely storing food. (B) A tenant and landlord may mutually agree when the lease is signed if the tenant chooses to provide and maintain their own refrigerator, provided that all of the following apply: (i) The lease contains a statement in substantially the following form: “Under state law, the landlord is required to provide a refrigerator in good working order in your unit. By checking this box, you acknowledge that you have asked to bring your own refrigerator and that you are responsible for keeping that refrigerator in working order.” (ii) The lease provides that the tenant may, with 30 days written notice, inform the landlord that they no longer wish to keep their own refrigerator in the unit, and that at the end of the 30-day notice period, the landlord shall install a refrigerator in good working order in the unit. (iii) A landlord shall not condition a tenancy upon the tenant providing their own refrigerator. (iv) The landlord shall not be responsible for the maintenance of a refrigerator provided by the tenant. (C) This paragraph shall only apply to a lease entered into, amended, or extended on or after January 1, 2026. (b) The characteristics described in paragraphs (10) and (11) of subdivision (a) shall not apply to any of the following: (1) Permanent supportive housing, as that term is defined in paragraph (2) of subdivision (c) of Section 8698.4 of the Government Code. (2) A single-room occupancy unit that provides living and sleeping space for the exclusive use of the occupant, including those in which occupants share food preparation facilities with occupants. (3) A unit in a residential hotel, as that term is defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code. (4) A dwelling unit within a housing facility that offers shared or communal kitchen spaces to its residents, including a dwelling unit within an assisted living facility. (c) (1) A landlord shall repair or replace a stove or refrigerator that is subject to recall by the manufacturer or a public entity, as described in paragraphs (10) and (11) of subdivision (a), within 30 days of receiving notice that the stove or refrigerator is subject to recall. (2) Nothing in this subdivision shall be construed to prohibit a tenant from exercising any remedy authorized under Section 1942. (d) Nothing in this section shall be interpreted to prohibit a tenant or owner of rental properties from qualifying for a utility energy savings assistance program, or any other program assistance, for heating or hot water system repairs or replacement, or a combination of heating and hot water system repairs or replacements, that would achieve energy savings. (Amended by Stats. 2025, Ch. 342, Sec. 1. (AB 628) Effective January 1, 2026.)
1941.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord has no duty to repair a dilapidation if the tenant is substantially violating listed upkeep duties and the violation substantially contributes to the dilapidation or interferes with repairs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.2. (a) No duty on the part of the landlord to repair a dilapidation shall arise under Section 1941 or 1942 if the tenant is in substantial violation of any of the following affirmative obligations, provided the tenant’s violation contributes substantially to the existence of the dilapidation or interferes substantially with the landlord’s obligation under Section 1941 to effect the necessary repairs: (1) To keep that part of the premises which he occupies and uses clean and sanitary as the condition of the premises permits. (2) To dispose from his dwelling unit of all rubbish, garbage and other waste, in a clean and sanitary manner. (3) To properly use and operate all electrical, gas and plumbing fixtures and keep them as clean and sanitary as their condition permits. (4) Not to permit any person on the premises, with his permission, to willfully or wantonly destroy, deface, damage, impair or remove any part of the structure or dwelling unit or the facilities, equipment, or appurtenances thereto, nor himself do any such thing. (5) To occupy the premises as his abode, utilizing portions thereof for living, sleeping, cooking or dining purposes only which were respectively designed or intended to be used for such occupancies. (b) Paragraphs (1) and (2) of subdivision (a) shall not apply if the landlord has expressly agreed in writing to perform the act or acts mentioned therein. (Amended by Stats. 1979, Ch. 307.)
1941.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords of human-habitation buildings must install and maintain specified door and window security devices, and tenants must tell the owner when they learn a lock is broken.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.3. (a) On and after July 1, 1998, the landlord, or his or her agent, of a building intended for human habitation shall do all of the following: (1) Install and maintain an operable dead bolt lock on each main swinging entry door of a dwelling unit. The dead bolt lock shall be installed in conformance with the manufacturer’s specifications and shall comply with applicable state and local codes including, but not limited to, those provisions relating to fire and life safety and accessibility for the disabled. When in the locked position, the bolt shall extend a minimum of13/16 of an inch in length beyond the strike edge of the door and protrude into the doorjamb. This section shall not apply to horizontal sliding doors. Existing dead bolts of at least one-half inch in length shall satisfy the requirements of this section. Existing locks with a thumb-turn deadlock that have a strike plate attached to the doorjamb and a latch bolt that is held in a vertical position by a guard bolt, a plunger, or an auxiliary mechanism shall also satisfy the requirements of this section. These locks, however, shall be replaced with a dead bolt at least 13/16 of an inch in length the first time after July 1, 1998, that the lock requires repair or replacement. Existing doors which cannot be equipped with dead bolt locks shall satisfy the requirements of this section if the door is equipped with a metal strap affixed horizontally across the midsection of the door with a dead bolt which extends 13/16 of an inch in length beyond the strike edge of the door and protrudes into the doorjamb. Locks and security devices other than those described herein which are inspected and approved by an appropriate state or local government agency as providing adequate security shall satisfy the requirements of this section. (2) Install and maintain operable window security or locking devices for windows that are designed to be opened. Louvered windows, casement windows, and all windows more than 12 feet vertically or six feet horizontally from the ground, a roof, or any other platform are excluded from this subdivision. (3) Install locking mechanisms that comply with applicable fire and safety codes on the exterior doors that provide ingress or egress to common areas with access to dwelling units in multifamily developments. This paragraph does not require the installation of a door or gate where none exists on January 1, 1998. (b) The tenant shall be responsible for notifying the owner or his or her authorized agent when the tenant becomes aware of an inoperable dead bolt lock or window security or locking device in the dwelling unit. The landlord, or his or her authorized agent, shall not be liable for a violation of subdivision (a) unless he or she fails to correct the violation within a reasonable time after he or she either has actual notice of a deficiency or receives notice of a deficiency. (c) On and after July 1, 1998, the rights and remedies of tenant for a violation of this section by the landlord shall include those available pursuant to Sections 1942, 1942.4, and 1942.5, an action for breach of contract, and an action for injunctive relief pursuant to Section 526 of the Code of Civil Procedure. Additionally, in an unlawful detainer action, after a default in the payment of rent, a tenant may raise the violation of this section as an affirmative defense and shall have a right to the remedies provided by Section 1174.2 of the Code of Civil Procedure. (d) A violation of this section shall not broaden, limit, or otherwise affect the duty of care owed by a landlord pursuant to existing law, including any duty that may exist pursuant to Section 1714. The delayed applicability of the requirements of subdivision (a) shall not affect a landlord’s duty to maintain the premises in safe condition. (e) Nothing in this section shall be construed to affect any authority of any public entity that may otherwise exist to impose any additional security requirements upon a landlord. (f) This section shall not apply to any building which has been designated as historically significant by an appropriate local, state, or federal governmental jurisdiction. (g) Subdivisions (a) and (b) shall not apply to any building intended for human habitation which is managed, directly or indirectly, and controlled by the Department of Transportation. This exemption shall not be construed to affect the duty of the Department of Transportation to maintain the premises of these buildings in a safe condition or abrogate any express or implied statement or promise of the Department of Transportation to provide secure premises. Additionally, this exemption shall not apply to residential dwellings acquired prior to July 1, 1997, by the Department of Transportation to complete construction of state highway routes 710 and 238 and related interchanges. (Added by Stats. 1997, Ch. 537, Sec. 1. Effective January 1, 1998.)
1941.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A residential building lessor must install at least one usable telephone jack, keep inside telephone wiring in good working order, ensure it meets the current California Electrical Code, make required repairs, and not block telephone utility access to network facilities up to the demarcation point.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.4. The lessor of a building intended for the residential occupation of human beings shall be responsible for installing at least one usable telephone jack and for placing and maintaining the inside telephone wiring in good working order, shall ensure that the inside telephone wiring meets the applicable standards of the most recent California Electrical Code, and shall make any required repairs. The lessor shall not restrict or interfere with access by the telephone utility to its telephone network facilities up to the demarcation point separating the inside wiring. “Inside telephone wiring” for purposes of this section, means that portion of the telephone wire that connects the telephone equipment at the customer’s premises to the telephone network at a demarcation point determined by the telephone corporation in accordance with orders of the Public Utilities Commission. (Amended by Stats. 2013, Ch. 183, Sec. 5. (SB 745) Effective January 1, 2014.)
1941.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord must change the eligible tenant’s locks within 24 hours after receiving the required documentation and give the tenant a new key.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.5. (a) This section shall apply if a person is alleged to have committed abuse or violence against the eligible tenant or the immediate family or household member of the eligible tenant and the person is not a tenant of the same dwelling unit as the eligible tenant. (b) A landlord shall, at the landlord’s own expense, change the locks of the eligible tenant’s dwelling unit upon written request of the eligible tenant not later than 24 hours after the eligible tenant gives the landlord a form of documentation described in subdivision (d) and shall give the eligible tenant a key to the new locks. (c) (1) If a landlord fails to change the locks within 24 hours, the eligible tenant may change the locks without the landlord’s permission, notwithstanding any provision in the lease to the contrary. (2) If the eligible tenant changes the locks pursuant to this subdivision, the following shall apply: (A) No later than 21 days after the eligible tenant changes the locks, the landlord shall reimburse the eligible tenant for the expenses the eligible tenant incurred to change the locks. (B) The eligible tenant shall do all of the following: (i) Change the locks in a workmanlike manner with locks of similar or better quality than the original lock. (ii) Notify the landlord within 24 hours that the locks have been changed. (iii) Provide the landlord with a key by any reasonable method agreed upon by the landlord and eligible tenant. (3) This subdivision shall apply to leases executed on or after January 1, 2011. (d) A written request to change the locks pursuant to subdivision (b) shall include one of the following forms of documentation attached to the request: (1) A copy of a temporary restraining order, emergency protective order, or protective order lawfully issued pursuant to Part 3 (commencing with Section 6240), Part 4 (commencing with Section 6300), or Part 5 (commencing with Section 6400) of Division 10 of the Family Code, Section 136.2 of the Penal Code, Section 527.6 of the Code of Civil Procedure, or Section 213.5 or 15657.03 of the Welfare and Institutions Code that protects the eligible tenant, household member, or immediate family member from abuse or violence. (2) A copy of a written report by a peace officer employed by a state or local law enforcement agency acting in the peace officer’s official capacity stating that the tenant, household member, or immediate family member has filed a report alleging that the tenant, the household member, or the immediate family member is a victim of abuse or violence. (3) (A) Documentation from a qualified third party based on information received by that third party while acting in their professional capacity to indicate that the tenant, the tenant’s immediate family member, or the tenant’s household member is seeking assistance for physical or mental injuries or abuse resulting from an act of abuse or violence, which shall contain, in substantially the same form, the following: Tenant Statement and Qualified Third Party Statement under Civil Code Section 1941.5 Part I.Statement By Tenant I, [insert name of tenant], state as follows: I, my immediate family member, or a member of my household, have been a victim of: [insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, dependent adult abuse, or a crime that caused bodily injury or death, a crime that included the exhibition, drawing, brandishing, or use of a firearm or other deadly weapon or instrument, or a crime that included the use of force against the victim or a threat of force against the victim.] The most recent incident(s) happened on or about: [insert date or dates.] The incident(s) was/were committed by the following person(s), with these physical description(s), if known and safe to provide: [if known and safe to provide, insert name(s) and physical description(s).] (signature of tenant)(date) Part II.Qualified Third Party Statement I, [insert name of qualified third party], state as follows: My business address and phone number are: [insert business address and phone number.] Check and complete one of the following: ____I meet the requirements for a sexual assault counselor provided in Section 1035.2 of the Evidence Code and I am either engaged in an office, hospital, institution, or center commonly known as a rape crisis center described in that section or employed by an organization providing the programs specified in Section 13835.2 of the Penal Code. ____I meet the requirements for a domestic violence counselor provided in Section 1037.1 of the Evidence Code and I am employed, whether financially compensated or not, by a domestic violence victim service organization, as defined in that section. ____I meet the requirements for a human trafficking caseworker provided in Section 1038.2 of the Evidence Code and I am employed, whether financially compensated or not, by an organization that provides programs specified in Section 18294 of the Welfare and Institutions Code or in Section 13835.2 of the Penal Code. ____I meet the definition of “victim of violent crime advocate” provided in Section 1946.7 of the Civil Code and I am employed, whether financially compensated or not, by an agency or organization that has a documented record of providing services to victims of violent crime or provides those services under the auspices or supervision of a court or a law enforcement or prosecution agency. ____I am licensed by the State of California as a: [insert one of the following: physician and surgeon, osteopathic physician and surgeon, registered nurse, psychiatrist, psychologist, licensed clinical social worker, licensed marriage and family therapist, or licensed professional clinical counselor.] and I am licensed by, and my license number is: [insert name of state licensing entity and license number.] The person who signed the Statement By Tenant above stated to me that the person, or a member of their immediate family, or a member of their household, is a victim of: [insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, dependent adult abuse, a crime that caused bodily injury or death, a crime that included the exhibition, drawing, brandishing, or use of a firearm or other deadly weapon or instrument, or a crime that included the use or threat of force against the victim.] The person further stated to me the incident(s) occurred on or about the date(s) stated above. (signature of qualified third party)(date) (B) The documentation may be signed by a person who meets the requirements for a sexual assault counselor, domestic violence counselor, a human trafficking caseworker, or a victim of violent crime advocate only if the documentation displays the letterhead of the office, hospital, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, this counselor, caseworker, or advocate. (4) Any other form of documentation that reasonably verifies that the abuse or violence occurred, including, but not limited to, a signed statement from the eligible tenant. (e) An eligible tenant satisfies the documentation requirements under subdivision (d) by providing one of the forms of documentation listed in subdivision (d), of the tenant’s choosing. (f) For the purposes of this section, the following definitions apply: (1) “Abuse or violence” has the same meaning as defined in paragraph (1) of subdivision (a) of Section 1161.3 of the Code of Civil Procedure. (2) “Eligible tenant” means either of the following: (A) A tenant who is a victim of abuse or violence. (B) A tenant who has an immediate family member or household member who is a victim of abuse or violence, if the tenant is not alleged to have committed the abuse or violence. (3) “Health practitioner” means a physician and surgeon, osteopathic physician and surgeon, psychiatrist, psychologist, registered nurse, licensed clinical social worker, licensed marriage and family therapist, or a licensed professional clinical counselor. (4) “Household member” has the same meaning as defined in paragraph (1) of subdivision (h) of Section 1946.7. (5) “Immediate family member” has the same meaning as defined in paragraph (3) of subdivision (h) of Section 1946.7. (6) “Locks” means any exterior lock that provides access to the dwelling. (7) “Qualified third party” means a health practitioner, domestic violence counselor, as defined in subdivision (a) of Section 1037.1 of the Evidence Code, a sexual assault counselor, as defined in Section 1035.2 of the Evidence Code, a human trafficking caseworker, as defined in subdivision (c) of Section 1038.2 of the Evidence Code, or a victim of violent crime advocate. (8) “Tenant” means tenant, subtenant, lessee, or sublessee. (9) “Victim of violent crime advocate” has the same meaning as defined in paragraph (5) of subdivision (h) of Section 1946.7. (Repealed and added by Stats. 2024, Ch. 75, Sec. 2. (SB 1051) Effective January 1, 2025.)
1941.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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If a protected tenant gives the landlord a qualifying court order, the landlord must change the locks within 24 hours and give the tenant a key. If the landlord does not act in time, the protected tenant may change the locks and then must notify the landlord, give a key, and ensure the work is done properly.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.6. (a) This section shall apply if a person who is restrained from contact with a protected tenant under a court order is a tenant of the same dwelling unit as the protected tenant. (b) A landlord shall, at the landlord’s own expense, change the locks of a protected tenant’s dwelling unit upon written request of the protected tenant not later than 24 hours after the protected tenant gives the landlord a copy of a court order that excludes from the dwelling unit the restrained person referred to in subdivision (a). The landlord shall give the protected tenant a key to the new locks. (c) (1) If a landlord fails to change the locks within 24 hours, the protected tenant may change the locks without the landlord’s permission, notwithstanding any provision in the lease to the contrary. (2) If the protected tenant changes the locks pursuant to this subdivision, both of the following shall apply: (A) No later than 21 days after the protected tenant changes the locks, the landlord shall reimburse the protected tenant for the expenses the protected tenant incurred to change the locks. (B) The protected tenant shall do all of the following: (i) Change the locks in a workmanlike manner with locks of similar or better quality than the original lock. (ii) Notify the landlord within 24 hours that the locks have been changed. (iii) Provide the landlord with a key by any reasonable method agreed upon by the landlord and protected tenant. (3) This subdivision shall apply to leases executed on or after January 1, 2011. (d) Notwithstanding Section 789.3, if the locks are changed pursuant to this section, the landlord is not liable to a person excluded from the dwelling unit pursuant to this section. (e) A person who has been excluded from a dwelling unit under this section remains liable under the lease with all other tenants of the dwelling unit for rent as provided in the lease. (f) For the purposes of this section, the following definitions shall apply: (1) “Court order” means a court order lawfully issued within the last 180 days pursuant to Section 527.6 of the Code of Civil Procedure, Part 3 (commencing with Section 6240), Part 4 (commencing with Section 6300), or Part 5 (commencing with Section 6400) of Division 10 of the Family Code, Section 136.2 of the Penal Code, or Section 213.5 of the Welfare and Institutions Code. (2) “Locks” means any exterior lock that provides access to the dwelling. (3) “Protected tenant” means a tenant who has obtained a court order. (4) “Tenant” means tenant, subtenant, lessee, or sublessee. (Amended by Stats. 2024, Ch. 75, Sec. 3. (SB 1051) Effective January 1, 2025.)
1941.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord may enter a dwelling unit to repair mold-related damage, but only if the landlord follows Section 1954. An obligation to repair mold-related dilapidation under Sections 1941 or 1942 does not arise until the lessor has notice, or if the tenant is violating Section 1941.2.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.7. (a) An obligation shall not arise under Section 1941 or 1942 to repair a dilapidation relating to the presence of mold pursuant to paragraph (13) of subdivision (a) of Section 17920.3 of the Health and Safety Code until the lessor has notice of the dilapidation or if the tenant is in violation of Section 1941.2. (b) A landlord may enter a dwelling unit to repair a dilapidation relating to the presence of mold pursuant to paragraph (13) of subdivision (a) of Section 17920.3 of the Health and Safety Code provided the landlord complies with the provisions of Section 1954. (Added by Stats. 2015, Ch. 720, Sec. 1. (SB 655) Effective January 1, 2016.)
1941.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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After a disaster, a landlord must remediate damage and hazards in habitable structures, follow government cleaning protocols, and give the tenant written notice and access to related studies or reports when an address is provided.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.8. (a) Subject to subdivision (e), for any structure intended for human habitation, it shall be the duty of a landlord to undertake one or both of the following actions as may be necessary to remediate any dilapidations that arise as a result of a disaster: (1) Removal of debris caused by the disaster. (2) Mitigation of hazards arising from the disaster, including, but not limited to, the presence of mold, smoke, smoke residue, smoke odor, ash, asbestos, or water damage. (b) Until a determination has been made by a local public health agency or official that the debris from the disaster, including, but not limited to, ash, sludge, or runoff, does not contain toxic substances, the presence of the debris at a rental unit shall be presumed to render the rental unit untenantable pursuant to Section 1941.1. (c) The landlord shall comply with subdivision (a) within a reasonable time after the property sustains damage, and shall follow any and all cleaning protocols issued by government officials, including contracting with licensed remediation companies where required. If the tenant has provided the landlord with a postal or email address, the landlord shall notify the tenant in writing that the landlord has complied with subdivision (a) and that the tenant may view and, if requested, obtain copies of any environmental studies, testing, or reports conducted. (d) Unless lawfully terminated by either party, the tenancy shall remain in effect and the tenant shall have the right to return to the rental unit at the same rental rate in effect immediately prior to the disaster as soon as it is safe and practicable. (e) Nothing in this section shall require a landlord to rebuild a residential rental property or any portion thereof that has sustained damage as a result of a disaster. (f) The rights, obligations, and remedies under this section are cumulative and in addition to any other rights, obligations, or remedies available under federal, state, or local law. (g) Nothing in this section preempts any local ordinance from providing for additional protections for tenants or imposing additional obligations on the landlord. (h) For purposes of this section, “disaster” means a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared by the President of the United States or the Governor. (Added by Stats. 2025, Ch. 547, Sec. 2. (SB 610) Effective January 1, 2026.)
1941.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords must refund advance rent after certain residential lease terminations, and tenants do not owe rent during a mandatory evacuation period.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1941.9. (a) (1) When the hiring of residential real property is terminated pursuant to paragraph (2) of Section 1932 or paragraph (4) of Section 1933, the landlord shall return to the tenant any advance rental payments made by the tenant that cover any period after the date of the termination. (2) Any payment from the landlord to the tenant required pursuant to paragraph (1) shall be made within 21 days of the date of the termination and shall be sent to the address provided by the tenant. If the hirer does not provide an address, mailings pursuant to this subdivision shall be sent to the address of the unit that was the subject of the terminated hiring. (3) For purposes of this subdivision, the date of the termination shall be either of the following, as applicable: (A) The date that the tenant informs the landlord or the landlord’s agent of the tenant’s intent to terminate the hiring pursuant to paragraph (2) of Section 1932. (B) The date that the residential real property was destroyed, if the termination happened pursuant to paragraph (4) of Section 1933. (b) During any period during which a tenant in residential real property is unable to occupy their rental unit due to a mandatory evacuation order pursuant to a disaster, as defined in Section 1941.8, the tenant’s obligation to pay rent shall be discharged for the period during which the tenant must be evacuated. If the tenant already paid rent for the period of an evacuation, the landlord shall return the rent within 10 calendar days after the evacuation order is lifted or the tenant may deduct the amount from the next month’s rent. (Added by Stats. 2025, Ch. 547, Sec. 3. (SB 610) Effective January 1, 2026.)
1942.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant may repair serious dilapidations and deduct the cost from rent, or move out and stop owing rent, if the landlord does not repair within a reasonable time after notice and the repair cost is no more than one month’s rent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942. (a) If within a reasonable time after written or oral notice to the landlord or his agent, as defined in subdivision (a) of Section 1962, of dilapidations rendering the premises untenantable which the landlord ought to repair, the landlord neglects to do so, the tenant may repair the same himself where the cost of such repairs does not require an expenditure more than one month’s rent of the premises and deduct the expenses of such repairs from the rent when due, or the tenant may vacate the premises, in which case the tenant shall be discharged from further payment of rent, or performance of other conditions as of the date of vacating the premises. This remedy shall not be available to the tenant more than twice in any 12-month period. (b) For the purposes of this section, if a tenant acts to repair and deduct after the 30th day following notice, he is presumed to have acted after a reasonable time. The presumption established by this subdivision is a rebuttable presumption affecting the burden of producing evidence and shall not be construed to prevent a tenant from repairing and deducting after a shorter notice if all the circumstances require shorter notice. (c) The tenant’s remedy under subdivision (a) shall not be available if the condition was caused by the violation of Section 1929 or 1941.2. (d) The remedy provided by this section is in addition to any other remedy provided by this chapter, the rental agreement, or other applicable statutory or common law. (Amended by Stats. 1979, Ch. 307.)
1942.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant cannot waive or change their rights under Sections 1941 or 1942 for conditions that make a dwelling untenantable, except that the landlord and tenant may agree to the tenant doing repair, maintenance, or improvement work as rental consideration.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.1. Any agreement by a lessee of a dwelling waiving or modifying his rights under Section 1941 or 1942 shall be void as contrary to public policy with respect to any condition which renders the premises untenantable, except that the lessor and the lessee may agree that the lessee shall undertake to improve, repair or maintain all or stipulated portions of the dwelling as part of the consideration for rental. The lessor and lessee may, if an agreement is in writing, set forth the provisions of Sections 1941 to 1942.1, inclusive, and provide that any controversy relating to a condition of the premises claimed to make them untenantable may by application of either party be submitted to arbitration, pursuant to the provisions of Title 9 (commencing with Section 1280), Part 3 of the Code of Civil Procedure, and that the costs of such arbitration shall be apportioned by the arbitrator between the parties. (Added by Stats. 1970, Ch. 1280.)
1942.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant who paid certain utility or district charges may deduct that payment from rent, if the deduction is made as allowed by the cited section.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.2. A tenant who has made a payment to a utility pursuant to Section 777, 777.1, 10009, 10009.1, 12822, 12822.1, 16481, or 16481.1 of the Public Utilities Code, or to a district pursuant to Section 60371 of the Government Code, may deduct the payment from the rent as provided in that section. (Amended by Stats. 2014, Ch. 913, Sec. 6. (AB 2747) Effective January 1, 2015.)
1942.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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In an unlawful detainer case, a rebuttable presumption can arise that the landlord breached habitability requirements if specified housing-condition and notice conditions are proven.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.3. (a) In any unlawful detainer action by the landlord to recover possession from a tenant, a rebuttable presumption affecting the burden of producing evidence that the landlord has breached the habitability requirements in Section 1941 is created if all of the following conditions exist: (1) The dwelling substantially lacks any of the affirmative standard characteristics listed in Section 1941.1, is deemed and declared substandard pursuant to Section 17920.3 of the Health and Safety Code, or contains lead hazards as defined in Section 17920.10 of the Health and Safety Code. (2) A public officer or employee who is responsible for the enforcement of any housing law has notified the landlord, or an agent of the landlord, in a written notice issued after inspection of the premises which informs the landlord of his or her obligation to abate the nuisance or repair the substandard or unsafe conditions identified under the authority described in paragraph (1). (3) The conditions have existed and have not been abated 60 days beyond the date of issuance of the notice specified in paragraph (2) and the delay is without good cause. (4) The conditions were not caused by an act or omission of the tenant or lessee in violation of Section 1929 or 1941.2. (b) The presumption specified in subdivision (a) does not arise unless all of the conditions set forth therein are proven, but failure to so establish the presumption shall not otherwise affect the right of the tenant to raise and pursue any defense based on the landlord’s breach of the implied warranty of habitability. (c) The presumption provided in this section shall apply only to rental agreements or leases entered into or renewed on or after January 1, 1986. (Amended by Stats. 2005, Ch. 595, Sec. 2. Effective January 1, 2006.)
1942.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord of a dwelling may not demand or collect rent, or issue certain rent notices, when the dwelling is substandard and notice and timing conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.4. (a) A landlord of a dwelling may not demand rent, collect rent, issue a notice of a rent increase, or issue a three-day notice to pay rent or quit pursuant to subdivision (2) of Section 1161 of the Code of Civil Procedure, if all of the following conditions exist prior to the landlord’s demand or notice: (1) The dwelling substantially lacks any of the affirmative standard characteristics listed in Section 1941.1 or violates Section 17920.10 of the Health and Safety Code, or is deemed and declared substandard as set forth in Section 17920.3 of the Health and Safety Code because conditions listed in that section exist to an extent that endangers the life, limb, health, property, safety, or welfare of the public or the occupants of the dwelling. (2) A public officer or employee who is responsible for the enforcement of any housing law, after inspecting the premises, has notified the landlord or the landlord’s agent in writing of his or her obligations to abate the nuisance or repair the substandard conditions. (3) The conditions have existed and have not been abated 35 days beyond the date of service of the notice specified in paragraph (2) and the delay is without good cause. For purposes of this subdivision, service shall be complete at the time of deposit in the United States mail. (4) The conditions were not caused by an act or omission of the tenant or lessee in violation of Section 1929 or 1941.2. (b) (1) A landlord who violates this section is liable to the tenant or lessee for the actual damages sustained by the tenant or lessee and special damages of not less than one hundred dollars ($100) and not more than five thousand dollars ($5,000). (2) The prevailing party shall be entitled to recovery of reasonable attorney’s fees and costs of the suit in an amount fixed by the court. (c) Any court that awards damages under this section may also order the landlord to abate any nuisance at the rental dwelling and to repair any substandard conditions of the rental dwelling, as defined in Section 1941.1, which significantly or materially affect the health or safety of the occupants of the rental dwelling and are uncorrected. If the court orders repairs or corrections, or both, the court’s jurisdiction continues over the matter for the purpose of ensuring compliance. (d) The tenant or lessee shall be under no obligation to undertake any other remedy prior to exercising his or her rights under this section. (e) Any action under this section may be maintained in small claims court if the claim does not exceed the jurisdictional limit of that court. (f) The remedy provided by this section may be utilized in addition to any other remedy provided by this chapter, the rental agreement, lease, or other applicable statutory or common law. Nothing in this section shall require any landlord to comply with this section if he or she pursues his or her rights pursuant to Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code. (Amended by Stats. 2003, Ch. 109, Sec. 1. Effective January 1, 2004.)
1942.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A lessor may not retaliate against a lessee by evicting, raising rent, reducing services, or similar acts after protected tenant complaints or activity, and immigration-report threats are also prohibited retaliation.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.5. (a) If the lessor retaliates against the lessee because of the exercise by the lessee of the lessee’s rights under this chapter or because of the lessee’s complaint to an appropriate agency as to tenantability of a dwelling, and if the lessee of a dwelling is not in default as to the payment of rent, the lessor may not recover possession of a dwelling in any action or proceeding, cause the lessee to quit involuntarily, increase the rent, or decrease any services within 180 days of any of the following: (1) After the date upon which the lessee, in good faith, has given notice pursuant to Section 1942, has provided notice of a suspected bed bug infestation, or has made an oral complaint to the lessor regarding tenantability. (2) After the date upon which the lessee, in good faith, has filed a written complaint, or an oral complaint which is registered or otherwise recorded in writing, with an appropriate agency, of which the lessor has notice, for the purpose of obtaining correction of a condition relating to tenantability. (3) After the date of an inspection or issuance of a citation, resulting from a complaint described in paragraph (2) of which the lessor did not have notice. (4) After the filing of appropriate documents commencing a judicial or arbitration proceeding involving the issue of tenantability. (5) After entry of judgment or the signing of an arbitration award, if any, when in the judicial proceeding or arbitration the issue of tenantability is determined adversely to the lessor. In each instance, the 180-day period shall run from the latest applicable date referred to in paragraphs (1) to (5), inclusive. (b) A lessee may not invoke subdivision (a) more than once in any 12-month period. (c) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (a). This subdivision shall in no way limit the definition of retaliatory conduct prohibited under this section. (d) Notwithstanding subdivision (a), it is unlawful for a lessor to increase rent, decrease services, cause a lessee to quit involuntarily, bring an action to recover possession, or threaten to do any of those acts, for the purpose of retaliating against the lessee because the lessee has lawfully organized or participated in a lessees’ association or an organization advocating lessees’ rights or has lawfully and peaceably exercised any rights under the law. In an action brought by or against the lessee pursuant to this subdivision, the lessee shall bear the burden of producing evidence that the lessor’s conduct was, in fact, retaliatory. (e) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (d). This subdivision shall in no way limit the definition of retaliatory conduct prohibited under this section. (f) This section does not limit in any way the exercise by the lessor of the lessor’s rights under any lease or agreement or any law pertaining to the hiring of property or the lessor’s right to do any of the acts described in subdivision (a) or (d) for any lawful cause. Any waiver by a lessee of the lessee’s rights under this section is void as contrary to public policy. (g) Notwithstanding subdivisions (a) to (f), inclusive, a lessor may recover possession of a dwelling and do any of the other acts described in subdivision (a) within the period or periods prescribed therein, or within subdivision (d), if the notice of termination, rent increase, or other act, and any pleading or statement of issues in an arbitration, if any, states the ground upon which the lessor, in good faith, seeks to recover possession, increase rent, or do any of the other acts described in subdivision (a) or (d). If the statement is controverted, the lessor shall establish its truth at the trial or other hearing. (h) Any lessor or agent of a lessor who violates this section shall be liable to the lessee in a civil action for all of the following: (1) The actual damages sustained by the lessee. (2) Punitive damages in an amount of not less than one hundred dollars ($100) nor more than two thousand dollars ($2,000) for each retaliatory act where the lessor or agent has been guilty of fraud, oppression, or malice with respect to that act. (i) In any action brought for damages for retaliatory eviction, the court shall award reasonable attorney’s fees to the prevailing party if either party requests attorney’s fees upon the initiation of the action. (j) The remedies provided by this section shall be in addition to any other remedies provided by statutory or decisional law. (k) A lessor does not violate subdivision (c) or (e) by complying with any legal obligation under any federal government program that provides for rent limitations or rental assistance to a qualified tenant. (l) This section shall become operative on October 1, 2021. (Amended (as amended by Stats. 2021, Ch. 2, Sec. 6) by Stats. 2021, Ch. 27, Sec. 5. (AB 832) Effective June 28, 2021. Operative October 1, 2021, by its own provisions.)
1942.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A person entering residential real property under the listed conditions is not liable for trespass.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.6. Any person entering onto residential real property, upon the invitation of an occupant, during reasonable hours or because of emergency circumstances, for the purpose of providing information regarding tenants’ rights or to participate in a lessees’ association or association of tenants or an association that advocates tenants’ rights shall not be liable in any criminal or civil action for trespass. The Legislature finds and declares that this section is declaratory of existing law. Nothing in this section shall be construed to enlarge or diminish the rights of any person under existing law. (Added by Stats. 1999, Ch. 590, Sec. 1. Effective January 1, 2000.)
1942.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Certain real-property occupiers and managers who allow animals on the premises may not discourage occupancy, refuse occupancy, or require tenants to declaw or devocalize animals.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.7. (a) A person or corporation that occupies, owns, manages, or provides services in connection with any real property, including the individual’s or corporation’s agents or successors in interest, and that allows an animal on the premises, shall not do any of the following: (1) Advertise, through any means, the availability of real property for occupancy in a manner designed to discourage application for occupancy of that real property because an applicant’s animal has not been declawed or devocalized. (2) Refuse to allow the occupancy of any real property, refuse to negotiate the occupancy of any real property, or otherwise make unavailable or deny to any other person the occupancy of any real property because of that person’s refusal to declaw or devocalize any animal. (3) Require any tenant or occupant of real property to declaw or devocalize any animal allowed on the premises. (b) For purposes of this section, the following definitions apply: (1) “Animal” means any mammal, bird, reptile, or amphibian. (2) “Application for occupancy” means all phases of the process of applying for the right to occupy real property, including, but not limited to, filling out applications, interviewing, and submitting references. (3) “Claw” means a hardened keratinized modification of the epidermis, or a hardened keratinized growth, that extends from the end of the digits of certain mammals, birds, reptiles, and amphibians, often commonly referred to as a “claw,” “talon,” or “nail.” (4) “Declawing” means performing, procuring, or arranging for any procedure, such as an onychectomy, tendonectomy, or phalangectomy, to remove or to prevent the normal function of an animal’s claw or claws. (5) “Devocalizing” means performing, procuring, or arranging for any surgical procedure such as a vocal cordectomy, to remove an animal’s vocal cords or to prevent the normal function of an animal’s vocal cords. (6) “Owner” means any person who has any right, title, or interest in real property. (c) (1) A city attorney, district attorney, or other law enforcement prosecutorial entity has standing to enforce this section and may sue for declaratory relief or injunctive relief for a violation of this section, and to enforce the civil penalties provided in paragraphs (2) and (3). (2) In addition to any other penalty allowed by law, a violation of paragraph (1) of subdivision (a) shall result in a civil penalty of not more than one thousand dollars ($1,000) per advertisement, to be paid to the entity that is authorized to bring the action under this section. (3) In addition to any other penalty allowed by law, a violation of paragraph (2) or (3) of subdivision (a) shall result in a civil penalty of not more than one thousand dollars ($1,000) per animal, to be paid to the entity that is authorized to bring the action under this section. (Added by Stats. 2012, Ch. 596, Sec. 2. (SB 1229) Effective January 1, 2013.)
1942.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord or the landlord’s agent must let a tenant opt out of paying for certain third-party internet service subscriptions connected to the tenancy, and may not retaliate for using these rights.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.8. (a) For any residential tenancy commenced, renewed, or continuing on a month-to-month or other periodic basis, on or after January 1, 2026, a landlord or their agent shall allow the tenant to opt out of paying for any subscription from a third-party internet service provider, such as through a bulk-billing arrangement, to provide service for wired internet, cellular, or satellite service that is offered in connection with the tenancy. (b) A landlord or their agent shall not retaliate against a tenant for exercising the tenant’s rights under this section, consistent with the protections provided in Section 1942.5. (c) If the landlord or their agent violates subdivision (a), the tenant may deduct the cost of the subscription to the third-party internet service provider from the rent. (d) This section does not prevent a landlord or their agent from offering bulk-billing arrangements to their tenants. (e) For the purposes of this section, “internet service provider” has the same meaning as that term is defined in Section 3100. (Added by Stats. 2025, Ch. 506, Sec. 1. (AB 1414) Effective January 1, 2026.)
1942.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord may not charge or try to collect late-payment fees on COVID-19 rental debt from a tenant who submitted a COVID-19-related financial distress declaration, and may not raise tenant fees or start charging for services that were previously free.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1942.9. (a) Notwithstanding any other law, a landlord shall not, with respect to a tenant who has COVID-19 rental debt, as that term is defined in Section 1179.02 of the Code of Civil Procedure, and who has submitted a declaration of COVID-19-related financial distress, as defined in Section 1179.02 of the Code of Civil Procedure, do either of the following: (1) Charge a tenant, or attempt to collect from a tenant, fees assessed for the late payment of that COVID-19 rental debt. (2) Increase fees charged to the tenant or charge the tenant fees for services previously provided by the landlord without charge. (b) Notwithstanding any other law, a landlord who temporarily reduces or makes unavailable a service or amenity as the result of compliance with federal, state, or local public health orders or guidelines shall not be considered to have violated the rental or lease agreement, nor to have provided different terms or conditions of tenancy or reduced services for purposes of any law, ordinance, rule, regulation, or initiative measure adopted by a local governmental entity that establishes a maximum amount that a landlord may charge a tenant for rent. (Amended by Stats. 2021, Ch. 5, Sec. 6. (AB 81) Effective February 23, 2021.)
1943.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section says most real-property hiring is treated as month-to-month unless the writing says otherwise, and agricultural or grazing property is presumed to be for one year unless the hiring states something different.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1943. A hiring of real property, other than lodgings and dwelling-houses, in places where there is no custom or usage on the subject, is presumed to be a month to month tenancy unless otherwise designated in writing; except that, in the case of real property used for agricultural or grazing purposes a hiring is presumed to be for one year from its commencement unless otherwise expressed in the hiring. (Amended by Stats. 1953, Ch. 1541.)
1944.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A hiring of lodgings or a dwelling house for an unspecified term is presumed to last for the period the parties use to calculate the rent.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1944. A hiring of lodgings or a dwelling house for an unspecified term is presumed to have been made for such length of time as the parties adopt for the estimation of the rent. Thus a hiring at a monthly rate of rent is presumed to be for one month. In the absence of any agreement respecting the length of time or the rent, the hiring is presumed to be monthly. (Enacted 1872.)
1945.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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If a tenant stays after the lease ends and the landlord accepts rent, the lease is presumed renewed on the same terms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1945. If a lessee of real property remains in possession thereof after the expiration of the hiring, and the lessor accepts rent from him, the parties are presumed to have renewed the hiring on the same terms and for the same time, not exceeding one month when the rent is payable monthly, nor in any case one year. (Enacted 1872.)
1945.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A residential lease with automatic renewal or extension terms can be voidable by the party who did not prepare it unless the renewal/extension language and a recital are printed in at least eight-point boldface in the required places.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1945.5. Notwithstanding any other provision of law, any term of a lease executed after the effective date of this section for the hiring of residential real property which provides for the automatic renewal or extension of the lease for all or part of the full term of the lease if the lessee remains in possession after the expiration of the lease or fails to give notice of his intent not to renew or extend before the expiration of the lease shall be voidable by the party who did not prepare the lease unless such renewal or extension provision appears in at least eight-point boldface type, if the contract is printed, in the body of the lease agreement and a recital of the fact that such provision is contained in the body of the agreement appears in at least eight-point boldface type, if the contract is printed, immediately prior to the place where the lessee executes the agreement. In such case, the presumption in Section 1945 of this code shall apply. Any waiver of the provisions of this section is void as against public policy. (Amended by Stats. 1976, Ch. 1107.)
1946.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section sets notice rules for ending a real-property hiring, including written notice timing, allowed delivery methods, and a ban on charging tenants notice-serving fees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946. (a) A hiring of real property, for a term not specified by the parties, is deemed to be renewed as stated in Section 1945, at the end of the term implied by law unless one of the parties gives written notice to the other of that party’s intention to terminate the same, at least as long before the expiration thereof as the term of the hiring itself, not exceeding 30 days; provided, however, that as to tenancies from month to month either of the parties may terminate the same by giving at least 30 days’ written notice thereof at any time and the rent shall be due and payable to and including the date of termination. It shall be competent for the parties to provide by an agreement at the time the tenancy is created that a notice of the intention to terminate the same may be given at any time not less than seven days before the expiration of the term thereof. The notice herein required shall be given in the manner prescribed in Section 1162 of the Code of Civil Procedure or by sending a copy by certified or registered mail addressed to the other party. In addition, the lessee may give the notice by sending a copy by certified or registered mail addressed to the agent of the lessor to whom the lessee has paid the rent for the month prior to the date of the notice or by delivering a copy to the agent personally. The notice given by the lessor shall also contain, in substantially the same form, the following: “State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.” (b) A landlord or its agent shall not charge a tenant a fee for serving, posting, or otherwise delivering any notice, as described in this section. (Amended by Stats. 2024, Ch. 287, Sec. 1. (SB 611) Effective January 1, 2025.)
1946.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section sets notice rules for ending certain residential or commercial tenancies, including renewal by default unless proper written notice is given.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.1. (a) Notwithstanding Section 1946, a hiring of residential real property or commercial real property by a qualified commercial tenant for a term not specified by the parties, is deemed to be renewed as stated in Section 1945, at the end of the term implied by law unless one of the parties gives written notice to the other of the party’s intention to terminate the tenancy, as provided in this section. (b) An owner of a residential dwelling or commercial real property hired by a qualified commercial tenant giving notice pursuant to this section shall give notice at least 60 days prior to the proposed date of termination. A tenant giving notice pursuant to this section shall give notice for a period at least as long as the term of the periodic tenancy prior to the proposed date of termination. (c) Notwithstanding subdivision (b), an owner of a residential dwelling or commercial real property hired by a qualified commercial tenant giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if a tenant or resident has resided in the dwelling or occupied the property for less than one year. (d) Notwithstanding subdivision (b), an owner of a residential dwelling giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if all of the following apply: (1) The dwelling or unit is alienable separate from the title to any other dwelling unit. (2) The owner has contracted to sell the dwelling or unit to a bona fide purchaser for value, and has established an escrow with a title insurer or an underwritten title company, as defined in Sections 12340.4 and 12340.5 of the Insurance Code, respectively, a licensed escrow agent, as defined in Sections 17004 and 17200 of the Financial Code, or a licensed real estate broker, as defined in Section 10131 of the Business and Professions Code. (3) The purchaser is a natural person or persons. (4) The notice is given no more than 120 days after the escrow has been established. (5) Notice was not previously given to the tenant pursuant to this section. (6) The purchaser in good faith intends to reside in the property for at least one full year after the termination of the tenancy. (e) After an owner has given notice of the owner’s intention to terminate the tenancy pursuant to this section, a tenant may also give notice of the tenant’s intention to terminate the tenancy pursuant to this section, provided that the tenant’s notice is for a period at least as long as the term of the periodic tenancy and the proposed date of termination occurs before the owner’s proposed date of termination. (f) The notices required by this section shall be given in the manner prescribed in Section 1162 of the Code of Civil Procedure or by sending a copy by certified or registered mail. (g) This section may not be construed to affect the authority of a public entity that otherwise exists to regulate or monitor the basis for eviction. (h) A notice given by an owner pursuant to this section shall contain, in substantially the same form, the following: “State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.” (i) A landlord or its agent shall not charge a tenant a fee for serving, posting, or otherwise delivering any notice, as described in this section. (j) A landlord of a commercial real property shall include in the notice required by this section information on the provisions of this section. (k) For the purposes of this section, the following definitions apply: (1) “Commercial real property” means all real property in this state, except dwelling units subject to this chapter, mobilehomes as defined in Section 798.3, and recreational vehicles as defined in Section 799.29. (2) “Microenterprise” has the same meaning as that term is defined in subdivision (a) of Section 18000 of the Business and Professions Code. (3) “Nonprofit organization” means any private, nonprofit organization that qualifies under Section 501(c)(3) of the United States Internal Revenue Code of 1986. (4) “Qualified commercial tenant” means a tenant of commercial real property that meets both of the following requirements: (A) The tenant is a microenterprise, a restaurant with fewer than 10 employees, or a nonprofit organization with fewer than 20 employees. (B) (i) Subject to clause (ii), the tenant has provided the landlord, within the previous 12 months, a written notice that the tenant is a qualified commercial tenant and a self-attestation regarding the number of employees, at such time the protections under this section come into place. (ii) Unless the tenancy is from week to week, month to month, or other period less than a month, the tenant provided the notice and self-attestation described in clause (i) before or upon execution of the lease, and annually thereafter, at such time the protections under this section come into place. (Amended by Stats. 2024, Ch. 1015, Sec. 3.5. (SB 1103) Effective January 1, 2025.)
1946.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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After a tenant has lived in a residential property for 12 months, the owner generally cannot end the tenancy without just cause, and the reason must be stated in the written notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied: (1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more. (2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more. (b) For purposes of this section, “just cause” means either of the following: (1) At-fault just cause, which means any of the following: (A) Default in the payment of rent. (B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. (C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law. (F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property. (G) Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (H) The tenant’s refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code. (I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (J) The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure. (K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure. (2) No-fault just cause, which means any of the following: (A) (i) Intent to occupy the residential real property by the owner or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that person’s primary residence. (ii) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1). (iii) This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property. (iv) The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other nonpublic documents. (v) Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months. (vi) (I) If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice. (II) If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h). (vii) For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served. (viii) As used in this subparagraph: (I) “Intended occupant” means the owner of the residential real property or the owner’s spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i). (II) “Owner” means any of the following: (ia) An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property. (ib) An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild. (ic) An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership. (III) For purposes of subclause (II), “natural person” includes any of the following: (ia) A natural person who is a settlor or beneficiary of a family trust. (ib) If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property. (IV) “Family trust” means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild. (V) “Beneficial owner” means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies: (ia) The natural person exercises substantial control over a partnership or limited liability company. (ib) The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company. (ic) The natural person receives substantial economic benefits from the assets of a partnership. (B) Withdrawal of the residential real property from the rental market. (C) (i) The owner complying with any of the following: (I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property. (II) An order issued by a government agency or court to vacate the residential real property. (III) A local ordinance that necessitates vacating the residential real property. (ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d). (D) (i) Intent to demolish or to substantially remodel the residential real property. (ii) For purposes of this subparagraph, “substantially remodel” means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days: (I) The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency. (II) The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws. (iii) For purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial remodel. (iv) A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information: (I) A statement informing the tenant of the owner’s intent to demolish the property or substantially remodel the rental unit property. (II) The following statement: “If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.” (III) A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following: (ia) A copy of the permit or permits required to undertake the substantial remodel or demolition. (ib) Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii). (IV) A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenant’s interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenant’s address, telephone number, and email address. (c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy. (d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenant’s income, at the owner’s option, do one of the following: (A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3). (B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due. (2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenant’s right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy. (3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenant’s rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice. (B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession. (C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law. (4) An owner’s failure to strictly comply with this subdivision shall render the notice of termination void. (e) This section shall not apply to the following types of residential real properties or residential circumstances: (1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940. (2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services. (3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. (4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property. (5) Single-family owner-occupied residences, including both of the following: (A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit. (B) A mobilehome. (6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. (7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome. (8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply: (A) The owner is not any of the following: (i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. (ii) A corporation. (iii) A limited liability company in which at least one member is a corporation. (iv) Management of a mobilehome park, as defined in Section 798.2. (B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.” (ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. (II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. (iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement. (II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement. (iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b). (9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. (f) An owner of residential real property subject to this section shall provide notice to the tenant as follows: (1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, in the lease or rental agreement, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant. (B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant. (2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. (B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement. (3) The notification or lease provision shall be in no less than 12-point type, and shall include the following: “California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.” The notification or lease provision shall be subject to Section 1632. (g) An owner’s failure to comply with any provision of this section shall render the written termination notice void. (h) (1) An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following: (A) Actual damages. (B) In the court’s discretion, reasonable attorney’s fees and costs. (C) Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner. (2) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section. (i) (1) This section does not apply to the following residential real property: (A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply. (B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is “more protective” if it meets all of the following criteria: (i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section. (ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law. (iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section. (2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section. (3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed. (j) Any waiver of the rights under this section shall be void as contrary to public policy. (k) For the purposes of this section, the following definitions shall apply: (1) “Owner” includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner. (2) “Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park. (3) “Tenancy” means the lawful occupation of residential real property and includes a lease or sublease. (l) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9. (m) This section shall become operative on April 1, 2024. (n) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. (Amended by Stats. 2025, Ch. 203, Sec. 1. (AB 1529) Effective January 1, 2026. Repealed as of January 1, 2030, by its own provisions.)
1946.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Tenants of residential real property may raise Social Security hardship as a defense in rent-based unlawful detainer cases, but they must prove the hardship and later pay past due rent or make a payment plan after benefits are restored.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.3. (a) This section is known, and may be cited, as the Social Security Tenant Protection Act of 2025. (b) For purposes of this section: (1) “Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park. (2) “Restored” means a reinstated Social Security benefit that has been received by the Social Security beneficiary. (3) “Social Security hardship” means a loss of income due to an interruption in the payment of Social Security benefits due to the action or inaction of the federal government. (c) Notwithstanding any other law, a tenant of residential real property may assert Social Security hardship as an affirmative defense in any unlawful detainer proceeding based on the nonpayment of rent. A tenant that asserts Social Security hardship as a defense shall provide evidence of all of the following to the satisfaction of the court: (1) That Social Security benefits typically received by the tenant’s household have been terminated, delayed, or reduced due to no fault of the tenant. (2) That the Social Security hardship prevented the tenant from paying the unpaid rent alleged in the unlawful detainer action. (d) If the tenant successfully provides all evidence required by subdivision (c) the court shall stay the unlawful detainer action until the earlier of either of the following: (1) Fourteen days after the tenant’s Social Security benefits are restored. (2) Six months after the stay is issued. (e) (1) This section does not relieve the tenant of their obligation to pay past due rent. (2) Within 14 days of their Social Security benefits being restored by the Social Security Administration, a tenant shall do one of the following: (A) Pay all past due rent. (B) Enter into a mutually agreed upon payment plan with the owner of the residential real property. (f) If the tenant has complied with paragraph (2) of subdivision (e), the court shall restore the tenant to their former estate or tenancy and either dismiss the unlawful detainer action with prejudice or set aside the judgment against all named and unnamed defendants in the action. (g) By January 1, 2027, the Judicial Council shall adopt or modify forms, as needed, to implement this section. (h) The affirmative defense created by this section does not apply to any unlawful detainer action other than an action based on the nonpayment of rent. (i) This section does not prohibit or preempt the Governor from using existing emergency powers to declare a moratorium on evictions for individuals experiencing Social Security hardship or from taking any other emergency actions. (j) This section shall remain in effect until January 20, 2029, and as of that date is repealed. (Added by Stats. 2025, Ch. 337, Sec. 1. (AB 246) Effective January 1, 2026. Repealed as of January 20, 2029, by its own provisions.)
1946.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Either party may end a periodic lodger room hiring in an owner-occupied dwelling by giving written notice to the other party, using the required delivery method and timing.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.5. (a) The hiring of a room by a lodger on a periodic basis within a dwelling unit occupied by the owner may be terminated by either party giving written notice to the other of his or her intention to terminate the hiring, at least as long before the expiration of the term of the hiring as specified in Section 1946. The notice shall be given in a manner prescribed in Section 1162 of the Code of Civil Procedure or by certified or registered mail, restricted delivery, to the other party, with a return receipt requested. (b) Upon expiration of the notice period provided in the notice of termination given pursuant to subdivision (a), any right of the lodger to remain in the dwelling unit or any part thereof is terminated by operation of law. The lodger’s removal from the premises may thereafter be effected pursuant to the provisions of Section 602.3 of the Penal Code or other applicable provisions of law. (c) As used in this section, “lodger” means a person contracting with the owner of a dwelling unit for a room or room and board within the dwelling unit personally occupied by the owner, where the owner retains a right of access to all areas of the dwelling unit occupied by the lodger and has overall control of the dwelling unit. (d) This section applies only to owner-occupied dwellings where a single lodger resides. Nothing in this section shall be construed to determine or affect in any way the rights of persons residing as lodgers in an owner-occupied dwelling where more than one lodger resides. (Added by Stats. 1986, Ch. 1010, Sec. 1.)
1946.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant who is a victim of certain crimes, or whose household or immediate family member is a victim, may give notice to end the tenancy, subject to notice and documentation rules.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.7. (a) A tenant may notify the landlord that the tenant intends to terminate the tenancy if the tenant, a household member, or an immediate family member was the victim of an act that constitutes any of the following: (1) Domestic violence as defined in Section 6211 of the Family Code. (2) Sexual assault as defined in Section 261, 261.5, 286, 287, or 289 of the Penal Code. (3) Stalking as defined in Section 1708.7. (4) Human trafficking as defined in Section 236.1 of the Penal Code. (5) Abuse of an elder or a dependent adult as defined in Section 15610.07 of the Welfare and Institutions Code. (6) A crime that caused bodily injury or death. (7) A crime that included the exhibition, drawing, brandishing, or use of a firearm or other deadly weapon or instrument. (8) A crime that included the use of force against the victim or a threat of force against the victim. (b) A notice to terminate a tenancy under this section shall be in writing, with one of the following attached to the notice: (1) A copy of a temporary restraining order, emergency protective order, or protective order lawfully issued pursuant to Part 3 (commencing with Section 6240) or Part 4 (commencing with Section 6300) of Division 10 of the Family Code, Section 136.2 of the Penal Code, Section 527.6 of the Code of Civil Procedure, or Section 213.5 or 15657.03 of the Welfare and Institutions Code that protects the tenant, household member, or immediate family member from further domestic violence, sexual assault, stalking, human trafficking, abuse of an elder or a dependent adult, or any act or crime listed in subdivision (a). (2) A copy of a written report by a peace officer employed by a state or local law enforcement agency acting in the peace officer’s official capacity stating that the tenant, household member, or immediate family member has filed a report alleging that the tenant, the household member, or the immediate family member is a victim of an act or crime listed in subdivision (a). (3) (A) Documentation from a qualified third party based on information received by that third party while acting in the third party’s professional capacity to indicate that the tenant, household member, or immediate family member is seeking assistance for physical or mental injuries or abuse resulting from an act or crime listed in subdivision (a). (B) The documentation shall contain, in substantially the same form, the following: Tenant Statement and Qualified Third Party Statement under Civil Code Section 1946.7 Part I.Statement By Tenant I, [insert name of tenant], state as follows: I, or a member of my household or immediate family, have been a victim of: [insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, dependent adult abuse, or a crime that caused bodily injury or death, a crime that included the exhibition, drawing, brandishing, or use of a firearm or other deadly weapon or instrument, or a crime that included the use of force against the victim or a threat of force against the victim.] The most recent incident(s) happened on or about: [insert date or dates.] The incident(s) was/were committed by the following person(s), with these physical description(s), if known and safe to provide: [if known and safe to provide, insert name(s) and physical description(s).] (signature of tenant)(date) Part II.Qualified Third Party Statement I, [insert name of qualified third party], state as follows: My business address and phone number are: [insert business address and phone number.] Check and complete one of the following: ____I meet the requirements for a sexual assault counselor provided in Section 1035.2 of the Evidence Code and I am either engaged in an office, hospital, institution, or center commonly known as a rape crisis center described in that section or employed by an organization providing the programs specified in Section 13835.2 of the Penal Code. ____I meet the requirements for a domestic violence counselor provided in Section 1037.1 of the Evidence Code and I am employed, whether financially compensated or not, by a domestic violence victim service organization, as defined in that section. ____I meet the requirements for a human trafficking caseworker provided in Section 1038.2 of the Evidence Code and I am employed, whether financially compensated or not, by an organization that provides programs specified in Section 18294 of the Welfare and Institutions Code or in Section 13835.2 of the Penal Code. ____I meet the definition of “victim of violent crime advocate” provided in Section 1947.6 of the Civil Code and I am employed, whether financially compensated or not, by an agency or organization that has a documented record of providing services to victims of violent crime or provides those services under the auspices or supervision of a court or a law enforcement or prosecution agency. ____I am licensed by the State of California as a: [insert one of the following: physician and surgeon, osteopathic physician and surgeon, registered nurse, psychiatrist, psychologist, licensed clinical social worker, licensed marriage and family therapist, or licensed professional clinical counselor.] and I am licensed by, and my license number is: [insert name of state licensing entity and license number.] The person who signed the Statement By Tenant above stated to me that the person, or a member of the person’s household or immediate family, is a victim of: [insert one or more of the following: domestic violence, sexual assault, stalking, human trafficking, elder abuse, dependent adult abuse, or a crime that caused physical injury, emotional injury and the threat of physical injury, or death.] The person further stated to me the incident(s) occurred on or about the date(s) stated above. I understand that the person who made the Statement By Tenant may use this document as a basis for terminating a lease with the person’s landlord. (signature of qualified third party)(date) (C) The documentation may be signed by a person who meets the requirements for a sexual assault counselor, domestic violence counselor, a human trafficking caseworker, or a victim of violent crime advocate only if the documentation displays the letterhead of the office, hospital, institution, center, or organization, as appropriate, that engages or employs, whether financially compensated or not, this counselor, caseworker, or advocate. (4) Any other form of documentation that reasonably verifies that the crime or act listed in subdivision (a) occurred. (c) If the tenant is terminating tenancy pursuant to subdivision (a) because an immediate family member is a victim of an eligible act or crime listed in subdivision (a) and that tenant did not live in the same household as the immediate family member at the time of the act or crime, and no part of the act or crime occurred within the dwelling unit or within 1,000 feet of the dwelling unit of the tenant, the tenant shall attach to the notice and other documentation required by subdivision (b) a written statement stating all of the following: (1) The tenant’s immediate family member was a victim of an act or crime listed in subdivision (a). (2) The tenant intends to relocate as a result of the tenant’s immediate family member being a victim of an act or crime listed in subdivision (a). (3) The tenant is relocating to increase the safety, physical well-being, emotional well-being, psychological well-being, or financial security of the tenant or of the tenant’s immediate family member as a result of the act or crime. (d) The notice to terminate the tenancy shall be given within 180 days of the date that any order described in paragraph (1) of subdivision (b) was issued, within 180 days of the date that any written report described in paragraph (2) of subdivision (b) was made, within 180 days of the date that an act or a crime described in subdivision (a) occurred, or within the time period described in Section 1946. (e) If notice to terminate the tenancy is provided to the landlord under this section, the tenant shall be responsible for payment of rent for no more than 14 calendar days following the giving of the notice, or for any shorter appropriate period as described in Section 1946 or the lease or rental agreement. The tenant shall be released without penalty from any further rent or other payment obligation to the landlord under the lease or rental agreement. If the premises are relet to another party prior to the end of the obligation to pay rent, the rent owed under this subdivision shall be prorated. (f) Notwithstanding any law, a landlord shall not, due to the termination, require a tenant who terminates a lease or rental agreement pursuant to this section to forfeit any security deposit money or advance rent paid. A tenant who terminates a rental agreement pursuant to this section shall not be considered for any purpose, by reason of the termination, to have breached the lease or rental agreement. In all other respects, the law governing the security deposit shall apply. (g) This section does not relieve a tenant, other than the tenant who is, or who has a household member or immediate family member who is, a victim of an act or crime listed in subdivision (a) and members of that tenant’s household, from their obligations under the lease or rental agreement. (h) For purposes of this section, the following definitions apply: (1) “Household member” means a member of the tenant’s family who lives in the same residential unit as the tenant. (2) “Health practitioner” means a physician and surgeon, osteopathic physician and surgeon, psychiatrist, psychologist, registered nurse, licensed clinical social worker, licensed marriage and family therapist, licensed professional clinical counselor, or a victim of violent crime advocate. (3) “Immediate family member” means the parent, stepparent, spouse, child, child-in-law, stepchild, or sibling of the tenant, or any person living in the tenant’s household at the time the crime or act listed in subdivision (a) occurred who has a relationship with the tenant that is substantially similar to that of a family member. (4) “Qualified third party” means a health practitioner, domestic violence counselor, as defined in Section 1037.1 of the Evidence Code, a sexual assault counselor, as defined in Section 1035.2 of the Evidence Code, or a human trafficking caseworker, as defined in Section 1038.2 of the Evidence Code. (5) “Victim of violent crime advocate” means a person who is employed, whether financially compensated or not, for the purpose of rendering advice or assistance to victims of violent crimes for an agency or organization that has a documented record of providing services to victims of violent crime or provides those services under the auspices or supervision of a court or a law enforcement or prosecution agency. (i) (1) A landlord shall not disclose any information provided by a tenant under this section to a third party unless the disclosure satisfies one or more of the following: (A) The tenant consents in writing to the disclosure. (B) The disclosure is required by law or order of the court. (2) A landlord’s communication to a qualified third party who provides documentation under paragraph (3) of subdivision (b) to verify the contents of that documentation is not disclosure for purposes of this subdivision. (j) An owner or an owner’s agent shall not refuse to rent a dwelling unit to an otherwise qualified prospective tenant or refuse to continue to rent to an existing tenant solely on the basis that the tenant has previously exercised the tenant’s rights under this section or has previously terminated a tenancy because of the circumstances described in subdivision (a). (k) A landlord or agent of a landlord who violates this section shall be liable to the tenant in a civil action for both of the following: (1) The actual damages sustained by the tenant. (2) (A) Statutory damages of not less than one hundred dollars ($100) and not more than five thousand dollars ($5,000). (B) Notwithstanding subparagraph (A), a landlord or agent of a landlord who violates this section shall not be liable for statutory damages if the tenant provided documentation of the crime or act to the landlord or the agent of the landlord pursuant to paragraph (4) of subdivision (b) only. (l) The remedies provided by this section shall be in addition to any other remedy provided by law. (Amended by Stats. 2022, Ch. 558, Sec. 1. (SB 1017) Effective January 1, 2023.)
1946.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords may not penalize tenants or residents for summoning law enforcement or emergency assistance in protected situations.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.8. (a) For purposes of this section: (1) “Individual in an emergency” means a person who believes that immediate action is required to prevent or mitigate the loss or impairment of life, health, or property. (2) “Occupant” means a person residing in a dwelling unit with the tenant. “Occupant” includes lodgers as defined in Section 1946.5. (3) “Penalties” means the following: (A) The actual or threatened assessment of fees, fines, or penalties. (B) The actual or threatened termination of a tenancy or the actual or threatened failure to renew a tenancy. (C) Subjecting a tenant to inferior terms, privileges, and conditions of tenancy in comparison to tenants who have not sought law enforcement assistance or emergency assistance. (4) “Resident” means a member of the tenant’s household or any other occupant living in the dwelling unit with the consent of the tenant. (5) “Victim of abuse” includes: (A) A victim of domestic violence as defined in Section 6211 of the Family Code. (B) A victim of elder or dependent adult abuse as defined in Section 15610.07 of the Welfare and Institutions Code. (C) A victim of human trafficking as described in Section 236.1 of the Penal Code. (D) A victim of sexual assault, meaning a victim of any act made punishable by Section 261, 264.1, 285, 286, 288, 288a, or 289 of the Penal Code. (E) A victim of stalking as described in Section 1708.7 of this code or Section 646.9 of the Penal Code. (6) “Victim of crime” means any victim of a misdemeanor or felony. (b) Any provision in a rental or lease agreement for a dwelling unit that prohibits or limits, or threatens to prohibit or limit, a tenant’s, resident’s, or other person’s right to summon law enforcement assistance or emergency assistance as, or on behalf of, a victim of abuse, a victim of crime, or an individual in an emergency, if the tenant, resident, or other person believes that the law enforcement assistance or emergency assistance is necessary to prevent or address the perpetration, escalation, or exacerbation of the abuse, crime, or emergency, shall be void as contrary to public policy. (c) A landlord shall not impose, or threaten to impose, penalties on a tenant or resident who exercises the tenant’s or resident’s right to summon law enforcement assistance or emergency assistance as, or on behalf of, a victim of abuse, a victim of crime, or an individual in an emergency, based on the person’s belief that the assistance is necessary, as described in subdivision (b). A landlord shall not impose, or threaten to impose, penalties on a tenant or resident as a consequence of a person who is not a resident or tenant summoning law enforcement assistance or emergency assistance on the tenant’s, resident’s, or other person’s behalf, based on the person’s belief that the assistance is necessary. (d) Documentation is not required to establish belief for purposes of subdivision (b) or (c), but belief may be established by documents such as those described in Section 1161.3 of the Code of Civil Procedure. (e) Any waiver of the provisions of this section is contrary to public policy and is void and unenforceable. (f) (1) In an action for unlawful detainer, a tenant, resident, or occupant may raise, as an affirmative defense, that the landlord or owner violated this section. (2) There is a rebuttable presumption that a tenant, resident, or occupant has established an affirmative defense under this subdivision if the landlord or owner files a complaint for unlawful detainer within 30 days of a resident, tenant, or other person summoning law enforcement assistance or emergency assistance and the complaint is based upon a notice that alleges that the act of summoning law enforcement assistance or emergency assistance as, or on behalf of, a victim of abuse, a victim of crime, or an individual in an emergency constitutes a rental agreement violation, lease violation, or a nuisance. A reference to a person summoning law enforcement in a notice that is the basis for a complaint for unlawful detainer that is necessary to describe conduct that is alleged to constitute a violation of a rental agreement or lease is not, in itself, an allegation for purposes of this paragraph. (3) A landlord or owner may rebut the presumption described in paragraph (2) by demonstrating that a reason other than the summoning of law enforcement or emergency assistance as, or on behalf of, a victim of abuse, a victim of crime, or an individual in an emergency was a substantial motivating factor for filing the complaint. (g) In addition to other remedies provided by law, a violation of this section entitles a tenant, a resident, or other aggrieved person to seek injunctive relief prohibiting the landlord from creating or enforcing policies in violation of this section, or from imposing or threatening to impose penalties against the tenant, resident, or other aggrieved person based on summoning law enforcement or emergency assistance as, or on behalf of, a victim of abuse, a victim of crime, or an individual in an emergency. (h) This section does not permit an injunction to be entered that would prohibit the filing of an unlawful detainer action. (i) This section does not limit a landlord’s exercise of the landlord’s other rights under a lease or rental agreement, or under other law pertaining to the hiring of property, with regard to matters that are not addressed by this section. (Amended by Stats. 2021, Ch. 626, Sec. 6. (AB 1171) Effective January 1, 2022.)
1946.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords and their agents may not use certain abuse-, violence-, lock-change-, or emergency-assistance-related facts as the basis for adverse tenant-screening actions, and they must accept qualifying abuse-or-violence documentation in one circumstance.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1946.9. (a) For the purposes of tenant screening, a landlord or a landlord’s agent shall not make an adverse action based on any of the following: (1) An allegation that the prospective tenant breached a lease or rental agreement if the alleged breach stemmed from an act of abuse or violence against a tenant, a tenant’s immediate family member, or a tenant’s household member, and the prospective tenant is not alleged to have committed the abuse or violence. The landlord shall accept any form of documentation evidencing abuse or violence against the tenant, the tenant’s immediate family member, or the tenant’s household member, as provided by subdivision (d) of Section 1941.5, as sufficient for the purposes of this paragraph. (2) The prospective tenant having previously requested to have their locks changed pursuant to Section 1941.5 or 1941.6, regardless of whether the request was granted. (3) The prospective tenant, or an immediate family member or household member of the prospective tenant, having been a victim of abuse or violence. A landlord or the landlord’s agent may request that a prospective tenant provide documentation described in subdivision (d) of Section 1941.5 to establish if a prospective tenant, or an immediate family member or household member of the prospective member, has been a victim of abuse or violence for the purposes of this paragraph. If the prospective tenant provides documentation described in subdivision (d) of Section 1941.5, the landlord shall accept the documentation as sufficient to establish that a prospective tenant, or an immediate family member or household member of the prospective member, has been a victim of abuse or violence for the purposes of this paragraph. (4) The prospective tenant, or a guest of the prospective tenant, having previously summoned law enforcement assistance or emergency assistance, as, or on behalf of a victim of abuse, a victim of crime, or an individual in an emergency, as provided in Section 1946.8. (b) A landlord or agent of a landlord who violates this section shall be liable to the prospective or current tenant in a civil action for both of the following: (1) The actual damages sustained by the prospective or current tenant. (2) Statutory damages of not less than one hundred dollars ($100) and not more than five thousand dollars ($5,000). (c) The remedies provided by this section shall be in addition to any other remedy provided by law. (d) For the purposes of this section, the following definitions apply: (1) “Abuse or violence” has the same meaning as defined in paragraph (1) of subdivision (a) of Section 1161.3 of the Code of Civil Procedure. (2) “Adverse action” means either of the following: (A) Denial of a prospective tenant’s rental application. (B) Approval of a prospective tenant’s rental application, subject to terms or conditions different and less favorable to the prospective tenant than those included in any written notice, statement, or advertisement for the rental unit, including written communication sent directly from the landlord or landlord’s agent to a prospective tenant. (3) “Household member” has the same meaning as defined in paragraph (1) of subdivision (h) of Section 1946.7. (4) “Immediate family member” has the same meaning as defined in paragraph (3) of subdivision (h) of Section 1946.7. (5) “Tenant” means tenant, subtenant, lessee, or sublessee. (6) “Tenant screening” means any process used by a landlord or landlord’s agent to evaluate the fitness of a prospective tenant. (Added by Stats. 2024, Ch. 75, Sec. 4. (SB 1051) Effective January 1, 2025.)
1947.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Rents are payable at the end of the holding, or at the end of each rental period for day, week, month, quarter, or year holdings, unless there is a different usage or contract.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947. When there is no usage or contract to the contrary, rents are payable at the termination of the holding, when it does not exceed one year. If the holding is by the day, week, month, quarter, or year, rent is payable at the termination of the respective periods, as it successively becomes due. (Enacted 1872.)
1947.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For certain qualifying residential properties, parking must be separated from rent, not included in the rental agreement, and kept unbundled for the life of the property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.1. (a) If an owner of a qualifying residential property provides parking with the qualifying residential property, they shall unbundle parking from the price of rent. (b) (1) Off-street parking accessory to a qualifying residential property shall not be included in any residential rental agreement and shall be subject to a rental agreement addendum or provided in a separate rental agreement. (2) All off-street parking spaces shall be unbundled from the qualifying residential property for the life of the property. (c) (1) A tenant of a qualifying residential property shall have the right of first refusal to parking spaces built for their property. Remaining residential unbundled parking spaces that are not leased to tenants of the residential dwelling may be leased by the owner of the qualifying residential property to other on-site users or to off-site residential users on a month-to-month basis. (2) If there are unavailable parking spaces on the residential property upon the occupancy of a new tenant, and parking spaces are subsequently built for the residential dwelling or otherwise becomes available on the qualifying residential property, the new tenant shall receive a right of first refusal to an available parking space. (d) (1) A tenant’s failure to pay the parking fee pursuant to a separately leased parking agreement shall not form the basis of any unlawful detainer action against the tenant. (2) If a tenant fails to pay by the 45th day following the date payment is owed for a separately leased parking space, the property owner may revoke that tenant’s right to lease that parking spot. (e) For purposes of this section: (1) “Owner of qualifying residential property” includes any person, acting as principal or through an agent, having the right to offer qualifying residential property for rent, and includes a predecessor in interest to the owner. (2) (A) “Qualifying residential property” means any dwelling or unit that is intended for human habitation that meets all of the following criteria: (i) The property is issued a certificate of occupancy on or after January 1, 2025. (ii) The property consists of 16 or more residential units. (iii) The property is located in one of the following counties: (I) Alameda. (II) Fresno. (III) Los Angeles. (IV) Riverside. (V) Sacramento. (VI) San Bernardino. (VII) San Joaquin. (VIII) Santa Clara. (IX) Shasta. (X) Ventura. (B) “Qualifying residential property” does not include any of the following: (i) A residential property or unit with an individual garage that is functionally a part of the property or unit, including, but not limited to, townhouses and row houses. (ii) A housing development of which 100 percent of its units, exclusive of any manager’s unit or units, are restricted by deed, regulatory restriction contained in an agreement with a governmental agency, or other recorded document as affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. (iii) A housing development that receives low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code (26 U.S.C. Sec. 42). (iv) A housing development that is financed with tax-exempt bonds pursuant to a program administered by the California Housing Finance Agency. (v) A residential unit that is leased to a tenant who receives a federal housing assistance voucher issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), including a federal Department of Housing and Urban Development Veterans Affairs Supportive Housing voucher. (3) “Unbundled parking” means the practice of selling or leasing parking spaces separate from the lease of the residential property. (Amended by Stats. 2024, Ch. 420, Sec. 1. (AB 2898) Effective January 1, 2025.)
1947.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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In certain rent-controlled areas, an owner who evicts a tenant to move in must live in the unit for at least six continuous months.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.10. (a) After July 1, 1990, in any city, county, or city and county which administers a system of controls on the price at which residential rental units may be offered for rent or lease and which requires the registration of rents, any owner who evicts a tenant based upon the owner’s or the owner’s immediate relative’s intention to occupy the tenant’s unit, shall be required to maintain residence in the unit for at least six continuous months. If a court determines that the eviction was based upon fraud by the owner or the owner’s immediate relative to not fulfill this six-month requirement, a court may order the owner to pay treble the cost of relocating the tenant from his or her existing unit back into the previous unit and may order the owner to pay treble the amount of any increase in rent which the tenant has paid. If the tenant decides not to relocate back into the previous unit, the court may order the owner to pay treble the amount of one month’s rent paid by the tenant for the unit from which he or she was evicted and treble the amount of any costs incurred in relocating to a different unit. The prevailing party shall be awarded attorney’s fees and court costs. (b) The remedy provided by this section shall not be construed to prohibit any other remedies available to a any party affected by this section. (Added by Stats. 1989, Ch. 987, Sec. 3.)
1947.11.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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In certain rent-controlled jurisdictions, an owner who charges more than the certified lawful rent ceiling must refund the excess rent to the tenant on demand.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.11. (a) In any city, county, or city and county which administers a system of controls on the price at which residential rental units may be offered for rent or lease and which requires the registration of rents, upon the establishment of a certified rent level, any owner who charges rent to a tenant in excess of the certified lawful rent ceiling shall refund the excess rent to the tenant upon demand. If the owner refuses to refund the excess rent and if a court determines that the owner willfully or intentionally charged the tenant rent in excess of the certified lawful rent ceiling, the court shall award the tenant a judgment for the excess amount of rent and may treble that amount. The prevailing party shall be awarded attorney’s fees and court costs. (b) The remedy provided by this section shall not be construed to prohibit any other remedies available to any party affected by this section. (c) This section shall not be construed to extend the time within which actions are required to be brought beyond the otherwise applicable limitation set forth in the Code of Civil Procedure. (Amended by Stats. 1990, Ch. 216, Sec. 7.)
1947.12.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Owners of residential real property generally may not raise rent by more than the stated cap in any 12-month period, must itemize rent and concessions in the lease, and must give tenants notice of increases. The section also limits some subleases, creates exemptions, and allows enforcement and damages for overcharges.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.12. (a) (1) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement. (2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase. (b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established. (c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenant’s interest where otherwise prohibited. (d) This section shall not apply to the following residential real properties: (1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. (2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. (3) Housing subject to rent or price control through a public entity’s valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a). (4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome. (5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply: (A) The owner is not any of the following: (i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. (ii) A corporation. (iii) A limited liability company in which at least one member is a corporation. (iv) Management of a mobilehome park, as defined in Section 798.2. (B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.” (ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. (iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement. (iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2. (6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. (e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827. (f) (1) On or before January 1, 2030, the Legislative Analyst’s Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state. (2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code. (g) For the purposes of this section, the following definitions shall apply: (1) “Consumer Price Index for All Urban Consumers for All Items” means the following: (A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows: (i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange. (ii) The CPI-U for the Riverside-San Bernardino-Ontario metropolitan area covering the Counties of Riverside and San Bernardino. (iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego. (iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo. (v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive. (B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations. (C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published. (2) “Owner” includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner. (3) (A) “Percentage change in the cost of living” means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items. (B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply: (I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that. (II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that. (ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply: (I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year. (II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year. (iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent. (4) “Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park. (5) “Tenancy” means the lawful occupation of residential real property and includes a lease or sublease. (h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i). (2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply: (A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a). (B) An owner shall not be liable to the tenant for any corresponding rent overpayment. (3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a). (i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021. (2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply: (A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a). (B) An owner shall not be liable to the tenant for any corresponding rent overpayment. (3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a). (j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9. (k) (1) An owner who demands, accepts, receives, or retains any payment of rent in excess of the maximum rent allowed by this section shall be liable in a civil action to the tenant from whom those payments are demanded, accepted, received, or retained for all of the following: (A) Injunctive relief. (B) Damages in the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent. (C) In the court’s discretion, reasonable attorney’s fees and costs. (D) Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, damages up to three times the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent. (2) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may do both of the following: (A) Enforce the provisions of this section. (B) Seek injunctive relief based on violations of this section. (3) In an action pursuant to this subdivision for injunctive relief, it shall be presumed that a tenant suffers irreparable harm through violation of this section. (4) An action pursuant to this subdivision shall not be brought after the date that is three years from the date on which the cause of action accrued. (l) Any waiver of the rights under this section shall be void as contrary to public policy. (m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases. (2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50). (3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. (n) This section shall become operative on April 1, 2024. (o) This section shall remain in effect until January 1, 2030, and as of that date is repealed. (Repealed (in Sec. 3) and added by Stats. 2023, Ch. 290, Sec. 4. (SB 567) Effective January 1, 2024. Operative April 1, 2024, by its own provisions. Repealed as of January 1, 2030, by its own provisions.)
1947.13.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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After rental restrictions expire, certain housing owners may set the initial rent, but later rent increases stay subject to Section 1947.12.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.13. (a) Notwithstanding subdivision (a) of Section 1947.12, upon the expiration of rental restrictions, the following shall apply: (1) The owner of an assisted housing development who demonstrates, under penalty of perjury, compliance with all applicable provisions of Sections 65863.10, 65863.11, and 65863.13 of the Government Code and any other applicable federal, state, or local law or regulation may establish the initial unassisted rental rate for units in the applicable housing development. Any subsequent rent increase in the development shall be subject to Section 1947.12. (2) The owner of a deed-restricted affordable housing unit or an affordable housing unit subject to a regulatory restriction contained in an agreement with a government agency limiting rental rates that is not within an assisted housing development may, subject to any applicable federal, state, or local law or regulation, establish the initial rental rate for the unit upon the expiration of the restriction. Any subsequent rent increase for the unit shall be subject to Section 1947.12. (b) For purposes of this section: (1) “Assisted housing development” has the same meaning as defined in paragraph (3) of subdivision (a) of Section 65863.10 of the Government Code. (2) “Expiration of rental restrictions” has the same meaning as defined in paragraph (5) of subdivision (a) of Section 65863.10 of the Government Code. (c) This section shall remain in effect until January 1, 2030, and as of that date is repealed. (d) Any waiver of the rights under this section shall be void as contrary to public policy. (e) This section shall not be construed to preempt any local law. (Amended by Stats. 2020, Ch. 37, Sec. 10. (AB 3088) Effective August 31, 2020. Repealed as of January 1, 2030, by its own provisions.)
1947.15.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Local rent-control agencies must let qualifying owners count certain reasonable professional expenses toward fair-return calculations, with limits and exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.15. (a) The Legislature declares the purpose of this section is to: (1) Ensure that owners of residential rental units that are subject to a system of controls on the price at which the units may be offered for rent or lease, or controls on the adjustment of the rent level, are not precluded or discouraged from obtaining a fair return on their properties as guaranteed by the United States Constitution and California Constitution because the professional expenses reasonably required in the course of the administrative proceedings, in order to obtain the rent increases necessary to provide a fair return, are not treated as a legitimate business expense. (2) Encourage agencies which administer a system of controls on the price at which residential rental units may be offered for rent or lease, or controls the adjustment of the rent level, to enact streamlined administrative procedures governing rent adjustment petitions which minimize, to the extent possible, the cost and expense of these administrative proceedings. (3) Ensure that the cost of professional services reasonably incurred and required by owners of residential rental units subject to a system of controls in the price at which the units may be offered for rent or lease, or controls on the adjustments of the rent level in the course of defending rights related to the rent control system, be treated as a legitimate business expense. (b) Any city, county, or city and county, including a charter city, which administers an ordinance, charter provision, rule, or regulation that controls or establishes a system of controls on the price at which all or any portion of the residential rental units located within the city, county, or city and county, may be offered for rent or lease, or controls the adjustment of the rent level, and which does not include a system of vacancy decontrol, as defined in subdivision (i), shall permit reasonable expenses, fees, and other costs for professional services, including, but not limited to, legal, accounting, appraisal, bookkeeping, consulting, property management, or architectural services, reasonably incurred in the course of successfully pursuing rights under or in relationship to, that ordinance, charter provision, rule, or regulation, or the right to a fair return on an owner’s property as protected by the United States Constitution or California Constitution, to be included in any calculation of net operating income and operating expenses used to determine a fair return to the owner of the property. All expenses, fees, and other costs reasonably incurred by an owner of property in relation to administrative proceedings for purposes specified in this subdivision shall be included in the calculation specified in this subdivision. (c) Reasonable fees that are incurred by the owner in successfully obtaining a judicial reversal of an adverse administrative decision regarding a petition for upward adjustment of rents shall be assessed against the respondent public agency which issued the adverse administrative decision, and shall not be included in the calculations specified in subdivisions (b) and (d). (d) (1) Notwithstanding subdivision (b), the city, county, or city and county, on the basis of substantial evidence in the record that the expenses reasonably incurred in the underlying proceeding will not reoccur annually, may amortize the expenses for a period not to exceed five years, except that in extraordinary circumstances, the amortization period may be extended to a period of eight years. The extended amortization period shall not apply to vacant units and shall end if the unit becomes vacant during the period that the expense is being amortized. An amortization schedule shall include a reasonable rate of interest. (2) Any determination of the reasonableness of the expenses claimed, of an appropriate amortization period, or of the award of an upward adjustment of rents to compensate the owner for expenses and costs incurred shall be made as part of, or immediately following, the decision in the underlying administrative proceeding. (e) Any and all of the following factors shall be considered in the determination of the reasonableness of the expenses, fees, or other costs authorized by this section: (1) The rate charged for those professional services in the relevant geographic area. (2) The complexity of the matter. (3) The degree of administrative burden or judicial burden, or both, imposed upon the property owner. (4) The amount of adjustment sought or the significance of the rights defended and the results obtained. (5) The relationship of the result obtained to the expenses, fees, and other costs incurred (that is, whether professional assistance was reasonably related to the result achieved). (f) This section shall not be applicable to any ordinance, rule, regulation, or charter provision of any city, county, or city and county, including a charter city, to the extent that the ordinance, rule, or regulation, or charter provision places a limit on the amount of rent that an owner may charge a tenant of a mobilehome park. (g) For purposes of this section, the rights of a property owner shall be deemed to be successfully pursued or defended if the owner obtains an upward adjustment in rents, successfully defends his or her rights in an administrative proceeding brought by the tenant or the local rent board, or prevails in a proceeding, brought pursuant to Section 1947.8 concerning certification of maximum lawful rents. (h) (1) If it is determined that a landlord petition assisted by attorneys or consultants is wholly without merit, the tenant shall be awarded a reduction in rent to compensate for the reasonable costs of attorneys or consultants retained by the tenant to defend the petition brought by the landlord. The reasonableness of the costs of the tenant’s defense of the action brought by the landlord shall be determined pursuant to the same provisions established by this section for determining the reasonableness of the landlord’s costs for the professional services. The determination of the reasonableness of the expenses claimed, an appropriate amortization period, and the award of a reduction in rents to compensate the tenant for costs incurred shall be made immediately following the decision in the underlying administrative proceeding. (2) If it is determined that a landlord’s appeal of an adverse administrative decision is frivolous or solely intended to cause unnecessary delay, the public agency which defended the action shall be awarded its reasonably incurred expenses, including attorney’s fees, in defending the action. As used in this paragraph, “frivolous” means either (A) totally and completely without merit; or (B) for the sole purpose of harassing an opposing party. (i) For purposes of this section, the following terms shall have the following meanings: (1) “Vacancy decontrol” means a system of controls on the price at which residential rental units may be offered for rent or lease which permits the rent to be increased to its market level, without restriction, each time a vacancy occurs. “Vacancy decontrol” includes systems which reimpose controls on the price at which residential rental units may be offered for rent or lease upon rerental of the unit. (2) “Vacancy decontrol” includes circumstances where the tenant vacates the unit of his or her own volition, or where the local jurisdiction permits the rent to be raised to market rate after an eviction for cause, as specified in the ordinance, charter provision, rule, or regulation. (j) This section shall not be construed to affect in any way the ability of a local agency to set its own fair return standards or to limit other actions under its local rent control program other than those expressly set forth in this section. (k) This section is not operative unless the Costa-Hawkins Rental Housing Act (Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3) is repealed. (Amended by Stats. 2002, Ch. 301, Sec. 2. Effective January 1, 2003. Section inoperative (beginning Jan. 1, 2003) until condition in subd. (k) is satisfied.)
1947.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords must let tenants pay rent and security deposits with at least one non-cash, non-electronic method, with limited exceptions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.3. (a) (1) Except as provided in paragraph (2), a landlord or a landlord’s agent shall allow a tenant to pay rent and deposit of security by at least one form of payment that is neither cash nor electronic funds transfer. (2) A landlord or a landlord’s agent may demand or require cash as the exclusive form of payment of rent or deposit of security if the tenant has previously attempted to pay the landlord or landlord’s agent with a check drawn on insufficient funds or the tenant has instructed the drawee to stop payment on a check, draft, or order for the payment of money. The landlord may demand or require cash as the exclusive form of payment only for a period not exceeding three months following an attempt to pay with a check on insufficient funds or following a tenant’s instruction to stop payment. If the landlord chooses to demand or require cash payment under these circumstances, the landlord shall give the tenant a written notice stating that the payment instrument was dishonored and informing the tenant that the tenant shall pay in cash for a period determined by the landlord, not to exceed three months, and attach a copy of the dishonored instrument to the notice. The notice shall comply with Section 827 if demanding or requiring payment in cash constitutes a change in the terms of the lease. (3) Subject to the limitations below, a landlord or a landlord’s agent shall allow a tenant to pay rent through a third party. (A) A landlord or landlord’s agent is not required to accept the rent payment tendered by a third party unless the third party has provided to the landlord or landlord’s agent a signed acknowledgment stating that they are not currently a tenant of the premises for which the rent payment is being made and that acceptance of the rent payment does not create a new tenancy with the third party. (B) Failure by a third party to provide the signed acknowledgment to the landlord or landlord’s agent shall void the obligation of a landlord or landlord’s agent to accept a tenant’s rent tendered by a third party. (C) The landlord or landlord’s agent may, but is not required to, provide a form acknowledgment to be used by third parties, as provided for in subparagraph (A), provided however that a landlord shall accept as sufficient for compliance with subparagraph (A) an acknowledgment in substantially the following form: I, [insert name of third party], state as follows: I am not currently a tenant of the premises located at [insert address of premises]. I acknowledge that acceptance of the rent payment I am offering for the premises does not create a new tenancy. (signature of third party) _____ (date) (D) A landlord or landlord’s agent may require a signed acknowledgment for each rent payment made by the third party. A landlord or landlord’s agent and the third party may agree that one acknowledgment shall be sufficient for when the third party makes more than one rent payment during a period of time. (E) Nothing in this paragraph shall be construed to require a landlord or landlord’s agent to enter into a contract in connection with a federal, state, or local housing assistance program, including, but not limited to, the federal housing assistance voucher programs under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f). (4) Paragraphs (2) and (3) do not enlarge or diminish a landlord’s or landlord’s agent’s legal right to terminate a tenancy. Nothing in paragraph (3) is intended to extend the due date for any rent payment or require a landlord or landlord’s agent to accept tender of rent beyond the expiration of the period stated in paragraph (2) of Section 1161 of the Code of Civil Procedure. (b) A landlord or its agent shall not charge a tenant any fee for payment by check for rent or security deposit as described in this section. (c) For the purposes of this section, the issuance of a money order or a cashier’s check is direct evidence only that the instrument was issued. (d) For purposes of this section, “electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. “Electronic funds transfer” includes, but is not limited to, point-of-sale transfers, direct deposits or withdrawals of funds, transfers initiated by telephone, transfers via an automated clearinghouse, transfers initiated electronically that deliver a paper instrument, and transfers authorized in advance to recur at substantially regular intervals. (e) Nothing in this section shall be construed to prohibit the tenant and landlord or agent to mutually agree that rent payments may be made in cash or by electronic funds transfer, so long as another form of payment is also authorized, subject to the requirements of subdivision (a). (f) A waiver of the provisions of this section is contrary to public policy, and is void and unenforceable. (Amended by Stats. 2024, Ch. 287, Sec. 3. (SB 611) Effective January 1, 2025.)
1947.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord or the landlord’s agent may prohibit smoking of cigarettes or other tobacco products in a residential rental property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.5. (a) A landlord of a residential dwelling unit, as defined in Section 1940, or his or her agent, may prohibit the smoking of a cigarette, as defined in Section 104556 of the Health and Safety Code, or other tobacco product on the property or in any building or portion of the building, including any dwelling unit, other interior or exterior area, or the premises on which it is located, in accordance with this article. (b) (1) Every lease or rental agreement entered into on or after January 1, 2012, for a residential dwelling unit on property on any portion of which the landlord has prohibited the smoking of cigarettes or other tobacco products pursuant to this article shall include a provision that specifies the areas on the property where smoking is prohibited, if the lessee has not previously occupied the dwelling unit. (2) For a lease or rental agreement entered into before January 1, 2012, a prohibition against the smoking of cigarettes or other tobacco products in any portion of the property in which smoking was previously permitted shall constitute a change of the terms of tenancy, requiring adequate notice in writing, to be provided in the manner prescribed in Section 827. (c) A landlord who exercises the authority provided in subdivision (a) to prohibit smoking shall be subject to federal, state, and local requirements governing changes to the terms of a lease or rental agreement for tenants with leases or rental agreements that are in existence at the time that the policy limiting or prohibiting smoking is adopted. (d) This section shall not be construed to preempt any local ordinance in effect on or before January 1, 2012, or any provision of a local ordinance in effect on or after January 1, 2012, that restricts the smoking of cigarettes or other tobacco products. (e) A limitation or prohibition of the use of any tobacco product shall not affect any other term or condition of the tenancy, nor shall this section be construed to require statutory authority to establish or enforce any other lawful term or condition of the tenancy. (f) For purposes of this section, “smoking” has the same meaning as in subdivision (c) of Section 22950.5 of the Business and Professions Code. (g) For purposes of this section, “tobacco product” means a product or device as defined in subdivision (d) of Section 22950.5 of the Business and Professions Code. (Amended by Stats. 2016, 2nd Ex. Sess., Ch. 7, Sec. 8. (SB 5 2x) Effective June 9, 2016.)
1947.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A lessor must approve a qualifying lessee’s written request to install an electric vehicle charging station, but the section has several exceptions and the lessee may have to pay related costs and carry insurance.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.6. (a) For any lease executed, extended, or renewed on and after July 1, 2015, a lessor of a dwelling shall approve a written request of a lessee to install an electric vehicle charging station at a parking space allotted for the lessee that meets the requirements of this section and complies with the lessor’s procedural approval process for modification to the property. (b) This section does not apply to residential rental properties where: (1) Electric vehicle charging stations already exist for lessees in a ratio that is equal to or greater than 10 percent of the designated parking spaces. (2) Parking is not provided as part of the lease agreement. (3) There are fewer than five parking spaces. (4) The dwelling is subject to a residential rent control ordinance. This paragraph shall not apply to a lease executed, extended, or renewed on and after January 1, 2019. (5) The dwelling is subject to both a residential rent control ordinance and an ordinance, adopted on or before January 1, 2018, that requires the lessor to approve a lessee’s written request to install an electric vehicle charging station at a parking space allotted to the lessee. (c) For purposes of this section, “electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and built in compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this section, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. (d) A lessor shall not be obligated to provide an additional parking space to a lessee in order to accommodate an electric vehicle charging station. (e) If the electric vehicle charging station has the effect of providing the lessee with a reserved parking space, the lessor may charge a monthly rental amount for that parking space. (f) An electric vehicle charging station and all modifications and improvements to the property shall comply with federal, state, and local law, and all applicable zoning requirements, land use requirements, and covenants, conditions, and restrictions. (g) A lessee’s written request to make a modification to the property in order to install and use an electric vehicle charging station shall include, but is not limited to, the lessee’s consent to enter into a written agreement that includes, but is not limited to, the following: (1) Compliance with the lessor’s requirements for the installation, use, maintenance, and removal of the charging station and installation, use, and maintenance of the infrastructure for the charging station. (2) Compliance with the lessor’s requirements for the lessee to provide a complete financial analysis and scope of work regarding the installation of the charging station and its infrastructure. (3) A written description of how, when, and where the modifications and improvements to the property are proposed to be made consistent with those items specified in the “Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” published by the Office of Planning and Research. (4) Obligation of the lessee to pay the lessor all costs associated with the lessor’s installation of the charging station and its infrastructure prior to any modification or improvement being made to the leased property. The costs associated with modifications and improvements shall include, but are not limited to, the cost of permits, supervision, construction, and, solely if required by the contractor, consistent with its past performance of work for the lessor, performance bonds. (5) Obligation of the lessee to pay as part of rent for the costs associated with the electrical usage of the charging station, and cost for damage, maintenance, repair, removal, and replacement of the charging station, and modifications or improvements made to the property associated with the charging station. (h) The lessee and each successor lessee shall obtain personal liability coverage, as described in Section 108 of the Insurance Code, in an amount not to exceed 10 times the annual rent changed for the dwelling, covering property damage and personal injury proximately caused by the installation or operation of the electric vehicle charging station. The policy shall be maintained in full force and effect from the time of installation of the electric vehicle charging station until the electric vehicle charging station is removed or the lessee forfeits possession of the dwelling to the lessor. (i) Notwithstanding subdivision (h), no insurance shall be required of a lessee installing an electric vehicle charging station if both of the following are satisfied: (1) The electric vehicle charging station has been certified by a Nationally Recognized Testing Laboratory that is approved by the Occupational Safety and Health Administration of the United States Department of Labor. (2) The electric vehicle charging station and any associated alterations to the dwelling’s electrical system are performed by a licensed electrician. (Amended by Stats. 2019, Ch. 855, Sec. 1. (SB 638) Effective January 1, 2020.)
1947.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Owners in substantial compliance with a local rent-control registration scheme are exempt from penalties and other sanctions for noncompliance, and some denied rent adjustments must be restored prospectively once compliance is reached.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.7. (a) The Legislature finds and declares that the operation of local rent stabilization programs can be complex and that disputes often arise with regard to standards of compliance with the regulatory processes of those programs. Therefore, it is the intent of the Legislature to limit the imposition of penalties and sanctions against an owner of residential rental units where that person has attempted in good faith to fully comply with the regulatory processes. (b) An owner of a residential rental unit who is in substantial compliance with an ordinance or charter that controls or establishes a system of controls on the price at which residential rental units may be offered for rent or lease and which requires the registration of rents, or any regulation adopted pursuant thereto, shall not be assessed a penalty or any other sanction for noncompliance with the ordinance, charter, or regulation. Restitution to the tenant or recovery of the registration or filing fees due to the local agency shall be the exclusive remedies which may be imposed against an owner of a residential rental unit who is in substantial compliance with the ordinance, charter, or regulation. “Substantial compliance,” as used in this subdivision, means that the owner of a residential rental unit has made a good faith attempt to comply with the ordinance, charter, or regulation sufficient to reasonably carry out the intent and purpose of the ordinance, charter, or regulation, but is not in full compliance, and has, after receiving notice of a deficiency from the local agency, cured the defect in a timely manner, as reasonably determined by the local agency. “Local agency,” as used in this subdivision, means the public entity responsible for the implementation of the ordinance, charter, or regulation. (c) For any residential unit which has been registered and for which a base rent has been listed or for any residential unit which an owner can show, by a preponderance of the evidence, a good faith attempt to comply with the registration requirements or who was exempt from registration requirements in a previous version of the ordinance or charter and for which the owner of that residential unit has subsequently found not to have been in compliance with the ordinance, charter, or regulation, all annual rent adjustments which may have been denied during the period of the owner’s noncompliance shall be restored prospectively once the owner is in compliance with the ordinance, charter, or regulation. (d) In those jurisdictions where, prior to January 1, 1990, the local ordinance did not allow the restoration of annual rent adjustment, once the owner is in compliance with this section the local agency may phase in any increase in rent caused by the restoration of the annual rent adjustments that is in excess of 20 percent over the rent previously paid by the tenant, in equal installments over three years, if the tenant demonstrates undue financial hardship due to the restoration of the full annual rent adjustments. This subdivision shall remain operative only until January 1, 1993, unless a later enacted statute which is chaptered by January 1, 1993, deletes or extends that date. (e) For purposes of this subdivision, an owner shall be deemed in compliance with the ordinance, charter, or regulation if he or she is in substantial compliance with the applicable local rental registration requirements and applicable local and state housing code provisions, has paid all fees and penalties owed to the local agency which have not otherwise been barred by the applicable statute of limitations, and has satisfied all claims for refunds of rental overcharges brought by tenants or by the local rent control board on behalf of tenants of the affected unit. (f) Nothing in this section shall be construed to grant to any public entity any power which it does not possess independent of this section to control or establish a system of control on the price at which accommodations may be offered for rent or lease, or to diminish any power to do so which that public entity may possess, except as specifically provided in this section. (g) In those jurisdictions where an ordinance or charter controls, or establishes a system of controls on, the price at which residential rental units may be offered for rent or lease and requires the periodic registration of rents, and where, for purposes of compliance with subdivision (e) of Section 1954.53, the local agency requires an owner to provide the name of a present or former tenant, the tenant’s name and any additional information provided concerning the tenant, is confidential and shall be treated as confidential information within the meaning of the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of this part). A local agency shall, to the extent required by this subdivision, be considered an “agency” as defined in subdivision (b) of Section 1798.3. For purposes of compliance with subdivision (e) of Section 1954.53, a local agency subject to this subdivision may request, but shall not compel, an owner to provide any information regarding a tenant other than the tenant’s name. (Amended by Stats. 1996, Ch. 566, Sec. 1. Effective January 1, 1997.)
1947.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section requires local agencies to certify permissible rent levels for covered residential rental units, set deadlines for issuing certificates, and allows landlords and tenants to request and appeal those certificates.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.8. (a) If an ordinance or charter controls or establishes a system of controls on the price at which residential rental units may be offered for rent or lease and requires the registration of rents, the ordinance or charter, or any regulation adopted pursuant thereto, shall provide for the establishment and certification of permissible rent levels for the registered rental units, and any changes thereafter to those rent levels, by the local agency as provided in this section. (b) If the ordinance, charter, or regulation is in effect on January 1, 1987, the ordinance, charter, or regulation shall provide for the establishment and certification of permissible rent levels on or before January 1, 1988, including completion of all appeals and administrative proceedings connected therewith. After July 1, 1990, no local agency may maintain any action to recover excess rent against any property owner who has registered the unit with the local agency within the time limits set forth in this section if the initial certification of permissible rent levels affecting that particular property has not been completed, unless the delay is willfully and intentionally caused by the property owner or is a result of court proceedings or further administrative proceedings ordered by a court. If the ordinance, charter, or regulation is adopted on or after January 1, 1987, the ordinance, charter, or regulation shall provide for the establishment and certification of permissible rent levels within one year after it is adopted, including completion of all appeals and administrative proceedings connected therewith. Upon the request of the landlord or the tenant, the local agency shall provide the landlord and the tenant with a certificate or other documentation reflecting the permissible rent levels of the rental unit. A landlord may request a certificate of permissible rent levels for rental units that have a base rent established, but are vacant and not exempt from registration under this section. The landlord or the tenant may appeal the determination of the permissible rent levels reflected in the certificate. The permissible rent levels reflected in the certificate or other documentation shall, in the absence of intentional misrepresentation or fraud, be binding and conclusive upon the local agency unless the determination of the permissible rent levels is being appealed. (c) After the establishment and certification of permissible rent levels under subdivision (b), the local agency shall, upon the request of the landlord or the tenant, provide the landlord and the tenant with a certificate of the permissible rent levels of the rental unit. The certificate shall be issued within five business days from the date of request by the landlord or the tenant. The permissible rent levels reflected in the certificate shall, in the absence of intentional misrepresentation or fraud, be binding and conclusive upon the local agency unless the determination of the permissible rent levels is being appealed. The landlord or the tenant may appeal the determination of the permissible rent levels reflected in the certificate. Any appeal of a determination of permissible rent levels as reflected in the certificate, other than an appeal made pursuant to subdivision (b), shall be filed with the local agency within 15 days from issuance of the certificate. The local agency shall notify, in writing, the landlord and the tenant of its decision within 60 days following the filing of the appeal. (d) The local agency may charge the person to whom a certificate is issued a fee in the amount necessary to cover the reasonable costs incurred by the local agency in issuing the certificate. (e) The absence of a certification of permissible rent levels shall not impair, restrict, abridge, or otherwise interfere with either of the following: (1) A judicial or administrative hearing. (2) Any matter in connection with a conveyance of an interest in property. (f) The record of permissible rent levels is a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). (g) Any notice specifying the rents applicable to residential rental units that is given by an owner to a public entity or tenant in order to comply with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code shall not be considered a registration of rents for purposes of this section. (h) “Local agency,” as used in this section, means the public entity responsible for the implementation of the ordinance, charter, or regulation. (i) Nothing in this section shall be construed: (1) To grant to any public entity any power that it does not possess independent of this section to control or establish a system of control on the price at which accommodations may be offered for rent or lease, or to diminish any power of this type that the public entity may possess, except as specifically provided in this section. (2) On and after January 1, 2016, to apply to tenancies commencing on or after January 1, 1999, for which the owner of residential property may establish the initial rent under Chapter 2.7 (commencing with Section 1954.50). However, for a tenancy that commenced on or after January 1, 1999, if a property owner has provided the local agency with the tenancy’s initial rent in compliance with that agency’s registration requirements in a writing signed under penalty of perjury, there shall be a rebuttable presumption that the statement of the initial rent is correct. (Amended by Stats. 2021, Ch. 615, Sec. 51. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
1947.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For certain San Francisco rent-stabilized units, temporary displacement compensation for less than 20 days is capped, with a per-day housing and living expense amount and actual moving expenses if needed.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1947.9. (a) (1) Notwithstanding any local law to the contrary, for those units governed by the local rent stabilization ordinance in the City and County of San Francisco, levels of compensation for the temporary displacement of a tenant household for less than 20 days shall be limited to both of the following: (A) Temporary housing and living expenses, of two hundred seventy-five dollars ($275) per day per tenant household. This limit may be adjusted annually by the city and county in an amount equal to the Consumer Price Index, beginning on January 1, 2014. (B) Actual moving expenses if it is necessary to move the possessions of the tenant household. (2) The landlord shall have the option to provide a comparable dwelling unit and pay any actual moving expenses, in lieu of the compensation specified in subparagraph (A) of paragraph (1). The rental housing shall be comparable to the tenant household’s existing housing in location, size, number of bedrooms, accessibility, type, and quality of construction, and proximity to services and institutions upon which the displaced tenant household depends. (b) This section shall not be construed to do any of the following: (1) To terminate, interrupt, or amend, in any way, a tenancy subject to the lease provisions, or the rights and obligations of either party, including, but not limited to, the payment of rent. (2) To create or affect any grounds for displacement or requirements of a landlord seeking temporary displacement, except the payment of relocation fees pursuant to subdivision (a) for displacement not exceeding 20 days. (3) To affect the authority of a public entity that may regulate or monitor the basis for eviction. (c) If a federal or state law regarding relocation compensation is also applicable to the temporary displacement, the tenant may elect to be compensated under those other provisions, and subdivision (a) shall be inapplicable. (d) This section shall affect only levels of compensation for a temporary displacement of less than 20 days, and does not affect any other local procedures governing temporary relocation. (Added by Stats. 2012, Ch. 243, Sec. 1. (AB 1925) Effective January 1, 2013.)
1948.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant’s attornment to a stranger is void unless the landlord consents or the attornment results from a court judgment.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1948. The attornment of a tenant to a stranger is void, unless it is made with the consent of the landlord, or in consequence of a judgment of a Court of competent jurisdiction. (Enacted 1872.)
1949.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A tenant who gets notice of a proceeding to recover the rented property must promptly tell the landlord and give the landlord the written notice if there is one.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1949. Every tenant who receives notice of any proceeding to recover the real property occupied by him or her, or the possession of the real property, shall immediately inform his or her landlord of the proceeding, and also deliver to the landlord the notice, if in writing, and is responsible to the landlord for all damages which he or she may sustain by reason of any omission to inform the landlord of the notice, or to deliver it to him or her if in writing. (Amended by Stats. 1989, Ch. 1360, Sec. 11.)
1950.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A person who rents part of a room for a dwelling can claim the whole room, even if the agreement says otherwise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950. One who hires part of a room for a dwelling is entitled to the whole of the room, notwithstanding any agreement to the contrary; and if a landlord lets a room as a dwelling for more than one family, the person to whom he first lets any part of it is entitled to the possession of the whole room for the term agreed upon, and every tenant in the building, under the same landlord, is relieved from all obligation to pay rent to him while such double letting of any room continues. (Enacted 1872.)
1950.1.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Reusable tenant screening reports must include specific applicant information and show how current the information is; landlords who accept such reports cannot charge related fees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.1. (a) A reusable tenant screening report shall include all of the following information regarding an applicant: (1) Name. (2) Contact information. (3) Verification of employment. (4) Last known address. (5) Results of an eviction history check in a manner and for a period of time consistent with applicable law related to the consideration of eviction history in housing. (b) A reusable tenant screening report shall prominently state the date through which the information contained in the report is current. (c) A landlord may elect to accept reusable tenant screening reports and may require an applicant to state that there has not been a material change to the information in the reusable tenant screening report. (d) Notwithstanding Section 1950.6, if an applicant provides a reusable tenant screening report to a landlord that accepts reusable tenant screening reports, the landlord shall not charge the applicant either of the following: (1) A fee for the landlord to access the report. (2) An application screening fee. (e) As used in this section: (1) “Applicant” has the same meaning as defined in Section 1950.6. (2) “Application screening fee” has the same meaning as defined in Section 1950.6. (3) “Consumer report” has the same meaning as defined in Section 1681a of Title 15 of the United States Code. (4) “Consumer reporting agency” means a person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties and that uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports. (5) “Landlord” means an owner of residential rental property or the owner’s agent. (6) “Reusable tenant screening report” means a consumer report that meets all of the following criteria: (A) Was prepared within the previous 30 days by a consumer reporting agency at the request and expense of an applicant. (B) Is made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer reporting agency. (C) Is available to the landlord at no cost to access or use. (f) This section does not affect any other applicable law related to the consideration of criminal history information in housing, including, but not limited to, Article 24 (commencing with Section 12264) of Subchapter 7 of Chapter 5 of Division 4.1 of Title 2 of the California Code of Regulations and local ordinances governing the information that landlords may review and consider when determining to whom they will rent. (g) If an ordinance, resolution, regulation, administrative action, initiative, or other policy adopted by a city, county, or city and county conflicts with this section, the policy that provides greater protections to applicants shall apply. (h) This section does not require a landlord to accept reusable tenant screening reports. (Added by Stats. 2022, Ch. 288, Sec. 1. (AB 2559) Effective January 1, 2023.)
1950.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section limits how much security a landlord may charge for a residential rental and sets rules for inspections, deductions, and return of the security after move-out.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.5. (a) This section applies to security for a rental agreement for residential property that is used as the dwelling of the tenant. (b) As used in this section, “security” means any payment, fee, deposit, or charge, including, but not limited to, any payment, fee, deposit, or charge, except as provided in Section 1950.6, that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used or to be used for any purpose, including, but not limited to, any of the following: (1) The compensation of a landlord for a tenant’s default in the payment of rent. (2) The repair of damages to the premises, exclusive of ordinary wear and tear, caused by the tenant or by a guest or licensee of the tenant. (3) The cleaning of the premises upon termination of the tenancy necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy. The amendments to this paragraph enacted by the act adding this sentence shall apply only to tenancies for which the tenant’s right to occupy begins after January 1, 2003. (4) To remedy future defaults by the tenant in any obligation under the rental agreement to restore, replace, or return personal property or appurtenances, exclusive of ordinary wear and tear, if the security deposit is authorized to be applied thereto by the rental agreement. (c) (1) Except as provided in paragraph (2), (3), or (5), a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month’s rent, in addition to any rent for the first month paid on or before initial occupancy. (2) This subdivision does not prohibit an advance payment of not less than six months’ rent if the term of the lease is six months or longer. (3) This subdivision does not preclude a landlord and a tenant from entering into a mutual agreement for the landlord, at the request of the tenant and for a specified fee or charge, to make structural, decorative, furnishing, or other similar alterations, if the alterations are other than cleaning or repairing for which the landlord may charge the previous tenant as provided by subdivision (e). (4) On or after April 1, 2025, if a landlord or its agent charges a service member who rents residential property in which the service member will reside a higher than standard or advertised security pursuant to paragraph (1) due to the credit history, credit score, housing history, or other factor related to the tenant, the landlord shall provide the tenant with a written statement, on or before the date the lease is signed, of the amount of the higher security and an explanation why the higher security amount is being charged. The additional amount of security shall be returned to the tenant after no more than six months of residency if the tenant is not in arrears for any rent due during that period. The date for return of the additional amount of security shall be included in the lease agreement. For purposes of this paragraph, “service member” has the same meaning as in Section 400 of the Military and Veterans Code. (5) (A) Notwithstanding paragraph (1), a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months’ rent, in addition to any rent for the first month paid on or before initial occupancy if the landlord meets both of the following requirements: (i) The landlord is a natural person or a limited liability company in which all members are natural persons. (ii) The landlord owns no more than two residential rental properties that collectively include no more than four dwelling units offered for rent. (B) Subparagraph (A) shall not apply if the prospective tenant is a service member. A landlord shall not refuse to enter into a rental agreement for residential property with a prospective tenant who is a service member because this subparagraph prohibits the landlord from demanding or receiving a greater amount of security than that which is established in paragraph (1). For purposes of this subparagraph, “service member” has the same meaning as in Section 400 of the Military and Veterans Code. (C) For purposes of this paragraph: (i) “Natural person” includes any natural person who is a settlor or beneficiary of a family trust. (ii) “Family trust” means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild. (6) This subdivision shall not apply to a security collected or demanded by the landlord before July 1, 2024. (d) Any security shall be held by the landlord for the tenant who is party to the lease or agreement. The claim of a tenant to the security shall be prior to the claim of any creditor of the landlord. (e) (1) Subject to paragraph (2), the landlord may claim of the security only those amounts as are reasonably necessary for the purposes specified in subdivision (b). (2) (A) The landlord shall not assert a claim against the tenant or the security for damages to the premises or any defective conditions that preexisted the tenancy, for ordinary wear and tear or the effects thereof, whether the wear and tear preexisted the tenancy or occurred during the tenancy, or for the cumulative effects of ordinary wear and tear occurring during any one or more tenancies. (B) Claims against the tenant or the security for materials or supplies and for work performed by a contractor, the landlord, or the landlord’s employee shall be limited to a reasonable amount necessary to restore the premises back to the condition it was in at the inception of the tenancy, exclusive of ordinary wear and tear. (C) The landlord shall not require a tenant to pay for, or assert a claim against the tenant or the security for, professional carpet cleaning or other professional cleaning services, unless reasonably necessary to return the premises to the condition it was in at the inception of tenancy, exclusive of ordinary wear and tear. (f) (1) Within a reasonable time after notification of either party’s intention to terminate the tenancy, or before the end of the lease term, the landlord shall notify the tenant in writing of the tenant’s option to request an initial inspection and of the tenant’s right to be present at the inspection. At a reasonable time, but no earlier than two weeks before the termination or the end of lease date, the landlord, or an agent of the landlord, shall, upon the request of the tenant, make an initial inspection of the premises prior to any final inspection the landlord makes after the tenant has vacated the premises. The purpose of the initial inspection shall be to allow the tenant an opportunity to remedy identified deficiencies, in a manner consistent with the rights and obligations of the parties under the rental agreement, in order to avoid deductions from the security. If a tenant chooses not to request an initial inspection, the duties of the landlord under this subdivision are discharged. If an inspection is requested, the parties shall attempt to schedule the inspection at a mutually acceptable date and time. The landlord shall give at least 48 hours’ prior written notice of the date and time of the inspection if either a mutual time is agreed upon, or if a mutually agreed time cannot be scheduled but the tenant still wishes an inspection. The tenant and landlord may agree to forgo the 48-hour prior written notice by both signing a written waiver. The landlord shall proceed with the inspection whether the tenant is present or not, unless the tenant previously withdrew their request for the inspection. Written notice by the landlord shall contain, in substantially the same form, the following: “State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.” (2) Based on the inspection, the landlord shall give the tenant an itemized statement specifying repairs or cleanings that are proposed to be the basis of any deductions from the security the landlord intends to make pursuant to paragraphs (1) to (4), inclusive, of subdivision (b). This statement shall also include the texts of paragraphs (1) to (4), inclusive, of subdivision (b). The statement shall be given to the tenant, if the tenant is present for the inspection, or shall be left inside the premises. (3) The tenant shall have the opportunity during the period following the initial inspection until termination of the tenancy to remedy identified deficiencies, in a manner consistent with the rights and obligations of the parties under the rental agreement, in order to avoid deductions from the security. (4) Subject to paragraphs (5) and (6), if an initial inspection is conducted pursuant to this subdivision and, at the time of inspection, the premises do not contain tenant possessions that prevent the landlord from identifying repairs or cleanings due to the presence of those possessions, the landlord shall not use the security for deductions for repairs or cleanings that are not identified in the itemized statement described in paragraph (2). (5) Nothing in this subdivision shall prevent a landlord from using the security for deductions itemized in the statement provided for in paragraph (2) that were not cured by the tenant so long as the deductions are for damages authorized by this section. (6) Nothing in this subdivision shall prevent a landlord from using the security for any purpose specified in paragraphs (1) to (4), inclusive, of subdivision (b) that occurs between completion of the initial inspection when possession of the unit is returned to the landlord or that was not identified during the initial inspection due to the presence of a tenant’s possessions. (7) The requirements of this subdivision do not apply when the tenancy is terminated pursuant to subdivision (2), (3), or (4) of Section 1161 of the Code of Civil Procedure. (g) (1) For tenancies that begin on or after July 1, 2025, the landlord shall take photographs of the unit immediately before, or at the inception of, the tenancy. (2) Beginning April 1, 2025, the landlord shall take photographs of the unit within a reasonable time after the possession of the unit is returned to the landlord, but prior to any repairs or cleanings for which the landlord will make a deduction from or claim against the security deposit pursuant to this section, and shall also take photographs of the unit within a reasonable time after such repairs or cleanings are completed. (h) (1) No later than 21 calendar days after the tenant has vacated the premises, but not earlier than the time that either the landlord or the tenant provides a notice to terminate the tenancy under Section 1946 or 1946.1, Section 1161 of the Code of Civil Procedure, or not earlier than 60 calendar days prior to the expiration of a fixed-term lease, the landlord shall furnish the tenant, a copy of an itemized statement indicating the basis for, and the amount of, any security received and the disposition of the security, and shall return any remaining portion of the security to the tenant as follows: (A) (i) Subject to subparagraph (C), and except as provided by clause (ii), the landlord shall return the remainder of the security by personal delivery or by a check made payable to the tenant and mailed by first-class mail, postage prepaid. (ii) (I) If the landlord received the security or rental payments from the tenant electronically, the landlord shall return the remainder of the security electronically to a bank account or other financial institution designated by the tenant in writing, or by any electronic or virtual method available to the landlord if agreed to in writing by the tenant. Alternatively, the landlord and tenant may, by written agreement, designate another method of return, including, but not limited to, by personal delivery or by a check made payable to the tenant and mailed by first-class mail, postage prepaid, to an address provided by the tenant. Upon the termination of a landlord’s interest in the premises and the transfer of the security to the landlord’s successor in interest as provided in subdivision (i), the landlord’s successor in interest shall return the remainder of the security electronically to a bank account or other financial institution designated by the tenant in writing or by any electronic or virtual method available to the landlord’s successor in interest if agreed to in writing by the tenant only if the landlord’s successor in interest received rental payments electronically from the tenant. (II) Pursuant to subclause (I), if the landlord received the security or rental payments from the tenant electronically or the landlord’s successor in interest received rental payments from the tenant electronically, the landlord or the landlord’s successor in interest shall, within a reasonable time after notification of either party’s intention to terminate the tenancy, or before the end of the lease term, notify the tenant in writing of the tenant’s right to receive the security electronically to a bank account or other financial institution designated by the tenant, or by any electronic or virtual method available to the landlord or the landlord’s successor in interest, if agreed to in writing by the tenant, pursuant to subclause (I). The requirements of this subclause do not apply when the landlord or the landlord’s successor in interest and tenant have previously entered into a written agreement designating another method of return of the security pursuant to subclause (I) or when the tenancy is terminated pursuant to subdivision (2), (3), or (4) of Section 1161 of the Code of Civil Procedure. (B) (i) Subject to subparagraph (C), and except as provided by clause (ii), the landlord shall furnish the itemized statement by personal delivery or first-class mail, postage prepaid. (ii) Upon mutual agreement between the landlord and tenant entered into at the commencement of the tenancy or at any time during or after the tenancy, the itemized statement may be furnished by either of the following: (I) Emailed to an account provided by the tenant. (II) Mailed to an address provided by the tenant by first-class mail, postage prepaid. (C) (i) Except as provided in clause (iii) and unless the landlord and all adult tenants residing in the unit enter into a written mutual agreement pursuant to clause (ii), if multiple adult tenants reside in the unit, the landlord shall return the remainder of the security by a check made payable to all adult tenants on the rental or lease agreement at the time the tenancy terminates and furnish the itemized statement by personal delivery or first-class mail, postage prepaid, to any one of the adult tenants chosen by the landlord. (ii) If multiple adult tenants reside in the unit, the landlord may enter into a mutual written agreement between the landlord and all adult tenants, at the commencement of the tenancy or at any time during or after the tenancy, that specifies both of the following: (I) How any remaining portion of the security will be returned, including whether it will be returned to a specific adult tenant or divided among multiple tenants, with the allocation percentages. If any remaining portion of the security is to be returned to multiple adult tenants, the landlord may return the security by either a check by first-class mail, postage prepaid, or an electronic deposit to a bank account or other financial institution designated by each adult tenant, as specified in the written agreement. (II) For each adult tenant, whether the landlord will furnish the itemized statement by email or first-class mail, postage prepaid, along with a forwarding address or email account. (iii) If multiple adult tenants reside in a unit and a tenant terminates the lease pursuant to Section 1946.7 and no written mutual agreement was entered into by the landlord and all adult tenants pursuant to clause (ii), and the tenant who terminated the lease pursuant to Section 1946.7 requests that the security be disbursed in a manner other than by check made payable to all adult tenants, the landlord may return the security in a manner other than by check made payable to all adult tenants. (2) The landlord shall also include, along with and at the same time the itemized statement is sent, copies of documents showing charges incurred and deducted by the landlord to repair or clean the premises, as follows: (A) If the landlord or landlord’s employee did the work, the itemized statement shall reasonably describe the work performed. The itemized statement shall include the time spent and the reasonable hourly rate charged. (B) If the landlord or landlord’s employee did not do the work, the landlord shall provide the tenant a copy of the bill, invoice, or receipt supplied by the person or entity performing the work. The itemized statement shall provide the tenant with the name, address, and telephone number of the person or entity, if the bill, invoice, or receipt does not include that information. (C) If a deduction is made for materials or supplies, the landlord shall provide a copy of the bill, invoice, or receipt. If a particular material or supply item is purchased by the landlord on an ongoing basis, the landlord may document the cost of the item by providing a copy of a bill, invoice, receipt, vendor price list, or other vendor document that reasonably documents the cost of the item used in the repair or cleaning of the unit. (D) If a deduction is made for repairs or cleanings allowed by this section, the landlord shall provide photographs taken pursuant to subdivision (g), along with a written explanation of the cost of the allowable repairs or cleanings, as described in subparagraphs (A) to (C), inclusive. The landlord may provide such photographs to the tenant by mail, email, computer flash drive, or by providing a link where the tenant may view the photographs online. (3) If a repair to be done by the landlord or the landlord’s employee cannot reasonably be completed within 21 calendar days after the tenant has vacated the premises, or if the documents from a person or entity providing services, materials, or supplies are not in the landlord’s possession within 21 calendar days after the tenant has vacated the premises, the landlord may deduct the amount of a good faith estimate of the charges that will be incurred and provide that estimate with the itemized statement. If the reason for the estimate is because the documents from a person or entity providing services, materials, or supplies are not in the landlord’s possession, the itemized statement shall include the name, address, and telephone number of the person or entity. Within 14 calendar days of completing the repair or receiving the documentation, the landlord shall complete the requirements in paragraphs (1) and (2) in the manner specified. (4) The landlord need not comply with paragraph (2) or (3) if either of the following applies: (A) The deductions for repairs and cleaning together do not exceed one hundred twenty-five dollars ($125). (B) The tenant waived the rights specified in paragraphs (2) and (3). The waiver shall only be effective if it is signed by the tenant at the same time or after a notice to terminate a tenancy under Section 1946 or 1946.1 has been given, a notice under Section 1161 of the Code of Civil Procedure has been given, or no earlier than 60 calendar days prior to the expiration of a fixed-term lease. The waiver shall substantially include the text of paragraph (2). (5) Notwithstanding paragraph (4), the landlord shall comply with paragraphs (2) and (3) when a tenant makes a request for documentation within 14 calendar days after receiving the itemized statement specified in paragraph (1). The landlord shall comply within 14 calendar days after receiving the request from the tenant. (6) Any mailings to the tenant pursuant to this subdivision shall be sent to the address provided by the tenant. If the tenant does not provide an address, mailings pursuant to this subdivision shall be sent to the unit that has been vacated. (7) The landlord shall not be entitled to claim any amount of the security if the landlord, in bad faith, fails to comply with this subdivision. (i) Upon termination of the landlord’s interest in the premises, whether by sale, assignment, death, appointment of receiver, or otherwise, the landlord or the landlord’s agent shall, within a reasonable time, do one of the following acts, either of which shall relieve the landlord of further liability with respect to the security held: (1) Transfer the portion of the security remaining after any lawful deductions are made under subdivision (e) to the landlord’s successor in interest. The landlord shall thereafter notify the tenant by personal delivery or by first-class mail, postage prepaid, of the transfer, of any claims made against the security, of the amount of the security deposited, and of the names of the successors in interest, their addresses, and their telephone numbers. If the notice to the tenant is made by personal delivery, the tenant shall acknowledge receipt of the notice and sign their name on the landlord’s copy of the notice. (2) Return the portion of the security remaining after any lawful deductions are made under subdivision (e) to the tenant, together with an accounting as provided in subdivision (h). (j) Prior to the voluntary transfer of a landlord’s interest in the premises, the landlord shall deliver to the landlord’s successor in interest a written statement indicating the following: (1) The security remaining after any lawful deductions are made. (2) An itemization of any lawful deductions from any security received. (3) Their election under paragraph (1) or (2) of subdivision (i). This subdivision does not affect the validity of title to the real property transferred in violation of this subdivision. (k) (1) In the event of noncompliance with subdivision (i), the landlord’s successors in interest shall be jointly and severally liable with the landlord for repayment of the security, or that portion thereof to which the tenant is entitled, when and as provided in subdivisions (e) and (h). A successor in interest of a landlord may not require the tenant to post any security to replace that amount not transferred to the tenant or successors in interest as provided in subdivision (i), unless and until the successor in interest first makes restitution of the initial security as provided in paragraph (2) of subdivision (i) or provides the tenant with an accounting as provided in subdivision (h). (2) This subdivision does not preclude a successor in interest from recovering from the tenant compensatory damages that are in excess of the security received from the landlord previously paid by the tenant to the landlord. (3) Notwithstanding this subdivision, if, upon inquiry and reasonable investigation, a landlord’s successor in interest has a good faith belief that the lawfully remaining security deposit is transferred to the successor in interest or returned to the tenant pursuant to subdivision (i), the successor in interest is not liable for damages as provided in subdivision (m), or any security not transferred pursuant to subdivision (i). (l) Upon receipt of any portion of the security under paragraph (1) of subdivision (i), the landlord’s successors in interest shall have all of the rights and obligations of a landlord holding the security with respect to the security. (m) The bad faith claim or retention by a landlord or the landlord’s successors in interest of the security or any portion thereof in violation of this section, or the bad faith demand of replacement of security in violation of subdivision (k), may subject the landlord or the landlord’s successors in interest to statutory damages of up to twice the amount of the security, in addition to actual damages. The court may award damages for bad faith whenever the facts warrant that award, regardless of whether the injured party has specifically requested relief. In an action under this section, the landlord or the landlord’s successors in interest shall have the burden of proof as to the reasonableness of the amounts claimed or the authority pursuant to this section to demand additional security deposits. (n) A lease or rental agreement shall not contain a provision characterizing any security as “nonrefundable.” (o) An action under this section may be maintained in small claims court if the damages claimed, whether actual, statutory, or both, are within the jurisdictional amount allowed by Section 116.220 or 116.221 of the Code of Civil Procedure. (p) Proof of the existence of and the amount of a security deposit may be established by any credible evidence, including, but not limited to, a canceled check, a receipt, a lease indicating the requirement of a deposit as well as the amount, prior consistent statements or actions of the landlord or tenant, or a statement under penalty of perjury that satisfies the credibility requirements set forth in Section 780 of the Evidence Code. (q) The amendments to this section made during the 1985 portion of the 1985–86 Regular Session of the Legislature that are set forth in subdivision (e) are declaratory of existing law. (r) The amendments to this section made during the 2003 portion of the 2003–04 Regular Session of the Legislature that are set forth in paragraph (1) of subdivision (f) are declaratory of existing law. (Amended by Stats. 2025, Ch. 340, Sec. 1. (AB 414) Effective January 1, 2026.)
1950.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords or their agents may charge an application screening fee for a residential rental request, but only within the section’s limits and required screening options.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.6. (a) Notwithstanding Section 1950.5, when a landlord or their agent receives a request to rent a residential property from an applicant, the landlord or their agent may charge, pursuant to subdivision (c), that applicant an application screening fee to cover the costs of obtaining information about the applicant. The information requested and obtained by the landlord or their agent may include, but is not limited to, personal reference checks and consumer credit reports produced by consumer credit reporting agencies as defined in Section 1785.3. A landlord or their agent may, but is not required to, accept and rely upon a consumer credit report presented by an applicant. (b) The amount of the application screening fee shall not be greater than the actual out-of-pocket costs of gathering information concerning the applicant, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service, and the reasonable value of time spent by the landlord or their agent in obtaining information on the applicant. In no case shall the amount of the application screening fee charged by the landlord or their agent be greater than thirty dollars ($30) per applicant. The thirty dollar ($30) application screening fee may be adjusted annually by the landlord or their agent commensurate with an increase in the Consumer Price Index, beginning on January 1, 1998. (c) (1) A landlord or their agent shall not charge an applicant an application screening fee when they know or should have known that no rental unit is available at that time or will be available within a reasonable period of time. (2) A landlord or their agent may charge an applicant an application screening fee only if the landlord or their agent, at the time the application screening fee is collected, offers any of the following: (A) An application screening process that complies with all of the following: (i) Completed applications are considered, as provided for in the landlord’s established screening criteria, in the order in which the completed applications were received. The landlord’s screening criteria shall be provided to the applicant in writing together with the application form. (ii) The first applicant who meets the landlord’s established screening criteria is approved for tenancy. (iii) Applicants are not charged an application screening fee unless or until their application is actually considered. (iv) Clause (iii) shall not be considered violated if a landlord or their agent inadvertently collects an application screening fee from an applicant as the result of multiple concurrent application submissions, provided that the landlord or their agent issues a refund of the application screening fee within seven days to any applicant whose application is not considered. The landlord may offer, as an alternative to refunding the screening fee, the option, at the applicant’s discretion, for the screening fee paid by the applicant to be applied to an application for another rental unit offered by the landlord. A landlord or their agent shall not be required to refund an application screening fee to an applicant whose application is denied, after consideration, because the applicant does not meet the landlord’s established screening criteria. (B) An application screening process in which the landlord or their agent returns the entire screening fee to any applicant who is not selected for tenancy, regardless of the reason, within 7 days of selecting an applicant for tenancy or 30 days of when the application was submitted, whichever occurs first. (d) The landlord or their agent shall provide, personally, or by mail, the applicant with a receipt for the fee paid by the applicant, which receipt shall itemize the out-of-pocket expenses and time spent by the landlord or their agent to obtain and process the information about the applicant. The landlord or their agent and the applicant may agree to have the landlord provide a copy of the receipt for the fee paid by the applicant to an email account provided by the applicant. (e) If the landlord or their agent does not perform a personal reference check or does not obtain a consumer credit report, the landlord or their agent shall return any amount of the screening fee that is not used for the purposes authorized by this section to the applicant. (f) If an application screening fee has been paid by the applicant, the landlord or their agent shall provide a copy of the consumer credit report to the applicant who is the subject of that report by personal delivery, mail, or email within seven days of the landlord or their agent receiving the report. (g) Nothing in this section prevents a landlord from accepting a reusable screening report pursuant to Section 1950.1. (h) As used in this section, “landlord” means an owner of residential rental property. (i) As used in this section, “application screening fee” means any nonrefundable payment of money charged by a landlord or their agent to an applicant, the purpose of which is to purchase a consumer credit report and to validate, review, or otherwise process an application for the rent or lease of residential rental property. (j) As used in this section, “applicant” means any entity or individual who makes a request to a landlord or their agent to rent a residential housing unit, or an entity or individual who agrees to act as a guarantor or cosignor on a rental agreement. (k) The application screening fee shall not be considered an “advance fee” as that term is used in Section 10026 of the Business and Professions Code, and shall not be considered “security” as that term is used in Section 1950.5. (l) This section is not intended to preempt any provisions or regulations that govern the collection of deposits and fees under federal or state housing assistance programs. (Amended by Stats. 2025, Ch. 67, Sec. 29. (AB 1170) Effective January 1, 2026.)
1950.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For nonresidential rental agreements, this section says the landlord must hold security money for the tenant, may use it only for limited specified deductions, and must return the balance on the stated timelines.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.7. (a) Any payment or deposit of money the primary function of which is to secure the performance of a rental agreement for other than residential property or any part of the agreement, other than a payment or deposit, including an advance payment of rent, made to secure the execution of a rental agreement, shall be governed by the provisions of this section. With respect to residential property, the provisions of Section 1950.5 shall prevail. (b) The payment or deposit of money shall be held by the landlord for the tenant who is party to the agreement. The claim of a tenant to the payment or deposit shall be prior to the claim of any creditor of the landlord, except a trustee in bankruptcy. (c) The landlord may claim of the payment or deposit only those amounts as are reasonably necessary to remedy tenant defaults in the payment of rent, to repair damages to the premises caused by the tenant, or to clean the premises upon termination of the tenancy, if the payment or deposit is made for any or all of those specific purposes. (1) If the claim of the landlord upon the payment or deposit is only for defaults in the payment of rent and the security deposit equals no more than one month’s rent plus a deposit amount clearly described as the payment of the last month’s rent, then any remaining portion of the payment or deposit shall be returned to the tenant at a time as may be mutually agreed upon by landlord and tenant, but in no event later than 30 days from the date the landlord receives possession of the premises. (2) If the claim of the landlord upon the payment or deposit is only for defaults in the payment of rent and the security deposit exceeds the amount of one month’s rent plus a deposit amount clearly described as the payment of the last month’s rent, then any remaining portion of the payment or deposit in excess of an amount equal to one month’s rent shall be returned to the tenant no later than two weeks after the date the landlord receives possession of the premises, with the remainder to be returned or accounted for within 30 days from the date the landlord receives possession of the premises. (3) If the claim of the landlord upon the payment or deposit includes amounts reasonably necessary to repair damages to the premises caused by the tenant or to clean the premises, then any remaining portion of the payment or deposit shall be returned to the tenant at a time as may be mutually agreed upon by landlord and tenant, but in no event later than 30 days from the date the landlord receives possession of the premises. (d) Upon termination of the landlord’s interest in the unit in question, whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or the landlord’s agent shall, within a reasonable time, do one of the following acts, either of which shall relieve the landlord of further liability with respect to the payment or deposit: (1) Transfer the portion of the payment or deposit remaining after any lawful deductions made under subdivision (c) to the landlord’s successor in interest, and thereafter notify the tenant by personal delivery or certified mail of the transfer, of any claims made against the payment or deposit, and of the transferee’s name and address. If the notice to the tenant is made by personal delivery, the tenant shall acknowledge receipt of the notice and sign his or her name on the landlord’s copy of the notice. (2) Return the portion of the payment or deposit remaining after any lawful deductions made under subdivision (c) to the tenant. (e) Upon receipt of any portion of the payment or deposit under paragraph (1) of subdivision (d), the transferee shall have all of the rights and obligations of a landlord holding the payment or deposit with respect to the payment or deposit. (f) The bad faith retention by a landlord or transferee of a payment or deposit or any portion thereof, in violation of this section, may subject the landlord or the transferee to damages not to exceed two hundred dollars ($200), in addition to any actual damages. (g) This section is declarative of existing law and therefore operative as to all tenancies, leases, or rental agreements for other than residential property created or renewed on or after January 1, 1971. (Amended by Stats. 2003, Ch. 89, Sec. 1. Effective January 1, 2004.)
1950.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section limits certain charges in commercial and nonresidential real-property leases, unless the amount is stated in the written lease or rental agreement.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.8. (a) This section applies only to commercial leases and nonresidential tenancies of real property. (b) It shall be unlawful for any person to require, demand, or cause to make payable any payment of money, including, but not limited to, “key money,” however denominated, or the lessor’s attorney’s fees reasonably incurred in preparing the lease or rental agreement, as a condition of initiating, continuing, or renewing a lease or rental agreement, unless the amount of payment is stated in the written lease or rental agreement. (c) Any person who requires, demands, or causes to make payable any payment in violation of subdivision (a), shall be subject to civil penalty of three times the amount of actual damages proximately suffered by the person seeking to obtain the lease or rental of real property, and the person so damaged shall be entitled to an award of costs, including reasonable attorney’s fees, reasonable incurred in connection with obtaining the civil penalty. (d) Nothing in this section shall prohibit the advance payment of rent, if the amount and character of the payment are clearly stated in a written lease or rental agreement. (e) Nothing in this section shall prohibit any person from charging a reasonable amount for the purpose of conducting reasonable business activity in connection with initiating, continuing, or renewing a lease or rental agreement for nonresidential real property, including, but not limited to, verifying creditworthiness or qualifications of any person seeking to initiate, continue, or renew a lease or rental agreement for any use other than residential use, or cleaning fees, reasonably incurred in connection with the hiring of the real property. (f) Nothing in this section shall prohibit a person from increasing a tenant’s rent for nonresidential real property in order to recover building operating costs incurred on behalf of the tenant, if the right to the rent, the method of calculating the increase, and the period of time covered by the increase is stated in the lease or rental agreement. (Added by Stats. 2001, Ch. 368, Sec. 1. Effective January 1, 2002.)
1950.9.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A commercial landlord generally may not charge a qualified commercial tenant a building-operating-cost fee unless the section’s documentation, timing, allocation, and notice conditions are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1950.9. (a) A landlord of a commercial real property shall not charge a qualified commercial tenant a fee to recover building operating costs unless all of the following apply: (1) The building operating costs are allocated proportionately per tenant, by square footage, or another method as substantiated through supporting documentation provided by the landlord to the qualified commercial tenant. (2) The building operating costs have been incurred within the previous 18 months, or are reasonably expected to be incurred within the next 12 months based on reasonable estimates. (3) Before the execution of the lease, the landlord provides the prospective qualified commercial tenant a paper or electronic notice stating that the tenant may inspect any supporting documentation of building operating costs upon written request pursuant to paragraph (4). (4) Within 30 days of a written request, the landlord provides the qualified commercial tenant supporting documentation of the previously incurred or reasonably expected building operating costs. (5) The costs do not include expenses paid by a tenant directly to a third party. (6) The costs do not include expenses for which a third party, tenant, or insurance reimbursed the landlord. (b) A landlord of a commercial real property shall not charge a fee to recover any building operating costs from the qualified commercial tenant until the landlord provides the qualified commercial tenant supporting documentation. (c) During the course of a commercial tenancy, the landlord shall not alter the method or formula used to allocate building operating costs to the qualified commercial tenant in a way that increases the qualified commercial tenant’s share of those costs, unless the qualified commercial tenant is provided with written notice of the change in the method or formula with supporting documentation of the basis of the alteration. (d) In an action for an unlawful detainer, ejectment, or other action to recover possession based on a failure to pay a fee to recover building operating costs, a qualified commercial tenant may raise, as an affirmative defense, that the landlord violated this section. (e) A landlord of a commercial real property who violates this section shall be liable to a qualified commercial tenant in a civil action for all of the following: (1) Actual damages. (2) In the courts discretion, reasonable attorney’s fees and costs. (3) Upon showing that the landlord, lessor, or their agent has acted willfully or with oppression, fraud, or malice both of the following: (A) Three times the amount of actual damages. (B) Punitive damages. (f) The district attorney, city attorney, or county counsel in the jurisdiction in which the commercial real property is located, in the name of the city or county, may seek injunctive relief based on a violation of this section. (g) Any waiver of a right under this section by a qualified commercial tenant shall be void as a matter of public policy. (h) For the purposes of this section, the following definitions apply: (1) “Building operating costs” means costs that are incurred on behalf of a tenant for the operation, maintenance, or repair of the commercial real property, including, but not limited to, maintenance of common areas, utilities that are not separately metered, and taxes or assessments charged to the landlord pursuant to property ownership. (2) “Commercial real property” means all real property in this state, except dwelling units subject to this chapter, mobilehomes, as defined in Section 798.3, and recreational vehicles, as defined in Section 799.29. (3) “Microenterprise” has the same meaning as that term is defined in subdivision (a) of Section 18000 of the Business and Professions Code. (4) “Nonprofit organization” means any private nonprofit organization that qualifies under Section 501(c)(3) of the United States Internal Revenue Code of 1986. (5) “Qualified commercial tenant” means a tenant of commercial real property that meets both of the following requirements: (A) The tenant is a microenterprise, a restaurant with fewer than 10 employees, or a nonprofit organization with fewer than 20 employees. (B) (i) Subject to clause (ii), the tenant has provided the landlord, within the previous 12 months, a written notice that the tenant is a qualified commercial tenant and a self-attestation regarding the number of employees, at such time the protections under this section come into place. (ii) Unless the tenancy is from week to week, month to month, or other period less than a month, the tenant provided the notice and self-attestation described in clause (i) before or upon execution of the lease, and annually thereafter, at such time the protections under this section come into place. (6) “Supporting documentation” means a dated and itemized quote, contract, receipt, or invoice from a licensed contractor or a provider of services that includes, but is not limited to, both of the following: (A) A tabulation showing how the costs are allocated among tenants in compliance with paragraph (1) of subdivision (a). (B) A signed and dated attestation by the landlord that the documentation and costs are true and correct. (i) This section shall only apply to the following: (1) Leases executed or tenancies commenced or renewed on or after January 1, 2025. (2) A tenancy that is from week to week, month to month, or other period less than a month. (3) Leases executed or tenancies commenced before January 1, 2025, that do not contain a provision regarding building operating costs. (j) This section does not apply to assessment levied pursuant to Part 7 (commencing with Section 36600) of Division 18 of the Streets and Highways Code. (Added by Stats. 2024, Ch. 1015, Sec. 4. (SB 1103) Effective January 1, 2025.)
1951.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For Sections 1951.2 to 1952.6, “rent” includes charges equivalent to rent, and “lease” includes a sublease.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951. As used in Sections 1951.2 to 1952.6, inclusive: (a) “Rent” includes charges equivalent to rent. (b) “Lease” includes a sublease. (Added by Stats. 1970, Ch. 89.)
1951.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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If a tenant breaches and abandons a real property lease, the lease ends and the landlord may recover specified damages, subject to exceptions and limits in the lease and Section 1951.4.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.2. (a) Except as otherwise provided in Section 1951.4, if a lessee of real property breaches the lease and abandons the property before the end of the term or if his right to possession is terminated by the lessor because of a breach of the lease, the lease terminates. Upon such termination, the lessor may recover from the lessee: (1) The worth at the time of award of the unpaid rent which had been earned at the time of termination; (2) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the lessee proves could have been reasonably avoided; (3) Subject to subdivision (c), the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the lessee proves could be reasonably avoided; and (4) Any other amount necessary to compensate the lessor for all the detriment proximately caused by the lessee’s failure to perform his obligations under the lease or which in the ordinary course of things would be likely to result therefrom. (b) The “worth at the time of award” of the amounts referred to in paragraphs (1) and (2) of subdivision (a) is computed by allowing interest at such lawful rate as may be specified in the lease or, if no such rate is specified in the lease, at the legal rate. The worth at the time of award of the amount referred to in paragraph (3) of subdivision (a) is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus 1 percent. (c) The lessor may recover damages under paragraph (3) of subdivision (a) only if: (1) The lease provides that the damages he may recover include the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award, or for any shorter period of time specified in the lease, exceeds the amount of such rental loss for the same period that the lessee proves could be reasonably avoided; or (2) The lessor relet the property prior to the time of award and proves that in reletting the property he acted reasonably and in a good-faith effort to mitigate the damages, but the recovery of damages under this paragraph is subject to any limitations specified in the lease. (d) Efforts by the lessor to mitigate the damages caused by the lessee’s breach of the lease do not waive the lessor’s right to recover damages under this section. (e) Nothing in this section affects the right of the lessor under a lease of real property to indemnification for liability arising prior to the termination of the lease for personal injuries or property damage where the lease provides for such indemnification. (Added by Stats. 1970, Ch. 89.)
1951.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section lets a lessor treat certain noncommercial real property as abandoned and end the lease if the tenant does not respond in writing before the stated termination date.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.3. (a) This section applies to real property other than commercial real property, as defined in subdivision (d) of Section 1954.26. (b) Real property shall be deemed abandoned by the lessee, within the meaning of Section 1951.2, and the lease shall terminate if the lessor gives written notice of belief of abandonment as provided in this section and the lessee fails to give the lessor written notice, prior to the date of termination specified in the lessor’s notice, stating that the lessee does not intend to abandon the real property and stating an address at which the lessee may be served by certified mail in any action for unlawful detainer of the real property. (c) The lessor may give a notice of belief of abandonment to the lessee pursuant to this section only where the rent on the property has been due and unpaid for at least 14 consecutive days and the lessor reasonably believes that the lessee has abandoned the property. The date of termination of the lease shall be specified in the lessor’s notice and shall be not less than 15 days after the notice is served personally or, if mailed, not less than 18 days after the notice is deposited in the mail. (d) The lessor’s notice of belief of abandonment shall be personally delivered to the lessee or sent by first-class mail, postage prepaid, to the lessee at the lessee’s last known address and, if there is reason to believe that the notice sent to that address will not be received by the lessee, also to any other address known to the lessor where the lessee may reasonably be expected to receive the notice. (e) The notice of belief of abandonment shall be in substantially the following form: Notice of Belief of Abandonment To: _____ (Name of lessee/tenant) _____ _____ (Address of lessee/tenant) _____ This notice is given pursuant to Section 1951.3 of the Civil Code concerning the real property leased by you at ________ (state location of the property by address or other sufficient description). The rent on this property has been due and unpaid for 14 consecutive days and the lessor/landlord believes that you have abandoned the property. The real property will be deemed abandoned within the meaning of Section 1951.2 of the Civil Code and your lease will terminate on ________ (here insert a date not less than 15 days after this notice is served personally or, if mailed, not less than 18 days after this notice is deposited in the mail) unless before that date the lessor/landlord receives at the address indicated below a written notice from you stating both of the following: (1) Your intent not to abandon the real property. (2) An address at which you may be served by certified mail in any action for unlawful detainer of the real property. You are required to pay the rent due and unpaid on this real property as required by the lease, and your failure to do so can lead to a court proceeding against you. Dated: _______ _____ (Signature of lessor/landlord) (Type or print name of lessor/landlord) (Address to which lessee/tenant is to send notice) (f) The real property shall not be deemed to be abandoned pursuant to this section if the lessee proves any of the following: (1) At the time the notice of belief of abandonment was given, the rent was not due and unpaid for 14 consecutive days. (2) At the time the notice of belief of abandonment was given, it was not reasonable for the lessor to believe that the lessee had abandoned the real property. The fact that the lessor knew that the lessee left personal property on the real property does not, of itself, justify a finding that the lessor did not reasonably believe that the lessee had abandoned the real property. (3) Before the date specified in the lessor’s notice, the lessee gave written notice to the lessor stating the lessee’s intent not to abandon the real property and stating an address at which the lessee may be served by certified mail in any action for unlawful detainer of the real property. (4) During the period beginning 14 days before the time the notice of belief of abandonment was given and ending on the date the lease would have terminated pursuant to the notice, the lessee paid to the lessor all or a portion of the rent due and unpaid on the real property. (g) Nothing in this section precludes the lessor or the lessee from otherwise proving that the real property has been abandoned by the lessee within the meaning of Section 1951.2. (h) Nothing in this section precludes the lessor from serving a notice requiring the lessee to pay rent or quit as provided in Sections 1161 and 1162 of the Code of Civil Procedure at any time permitted by those sections, or affects the time and manner of giving any other notice required or permitted by law. The giving of the notice provided by this section does not satisfy the requirements of Sections 1161 and 1162 of the Code of Civil Procedure. (Amended by Stats. 2018, Ch. 104, Sec. 2. (AB 2847) Effective January 1, 2019.)
1951.35.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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For commercial real property, a lessor may give notice of belief of abandonment only after the rent has been unpaid long enough for a lease default and the lessor reasonably believes the lessee has abandoned the property; the lease can terminate only if the lessee does not respond in writing before the stated termination date.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.35. (a) This section applies only to commercial real property, as defined in subdivision (d) of Section 1954.26. (b) Commercial real property shall be deemed abandoned by the lessee within the meaning of Section 1951.2 and the lease shall terminate if the lessor gives written notice of belief of abandonment pursuant to subdivision (c) and, prior to the date of termination specified in the lessor’s notice of belief of abandonment, the lessee fails to give the lessor written notice stating that the lessee does not intend to abandon the commercial real property and provides an address at which the lessee may be served by certified mail in an action for unlawful detainer of real property. (c) The lessor may give notice of belief of abandonment pursuant to this section only if the rent on the property has been due and unpaid for at least the number of days required for the lessor to declare a rent default under the terms of the lease, but in no case less than three days, and the lessor reasonably believes that the lessee has abandoned the property. The date of termination of the lease shall be specified in the notice and shall be not less than 15 days after the notice is served personally, sent to the lessee by an overnight courier service, or deposited in the mail. (d) The lessor’s notice of belief of abandonment shall be personally delivered to the lessee, sent by a recognized overnight carrier, or sent by first-class mail, postage prepaid, to the lessee at the lessee’s last known address, and, if there is reason to believe that the notice sent to that address will not be received by the lessee, also to any other address known to the lessor where the lessee may reasonably be expected to receive the notice. (e) The notice of belief of abandonment shall be in substantially the following form: Notice of Belief of Abandonment To: _____ (Name of lessee/tenant) _____ _____ (Address of lessee/tenant) _____ This notice is given pursuant to Section 1951.35 of the Civil Code concerning the real property leased by you at ________ (state location of the property by address or other sufficient description). The rent on this property has been due and unpaid for the number of days necessary to declare a rent default under your lease and the lessor/landlord believes that you have abandoned the property. The real property will be deemed abandoned within the meaning of Section 1951.2 of the Civil Code and your lease will terminate on ________ (here insert a date not less than 15 days after this notice is served personally, sent by overnight courier service, or deposited in the mail) unless before that date the lessor/landlord receives at the address below a written notice from you stating both of the following: (1) Your intent not to abandon the real property. (2) An address at which you may be served by certified mail in any action for unlawful detainer of the real property. You are required to pay the rent due and unpaid on this real property as required by the lease, and your failure to do so can lead to a court proceeding against you. Dated: _______ _____ (Signature of lessor/landlord) (Type or print name of lessor/landlord) (Address to which lessee/tenant is to send notice) (f) The real property shall not be deemed to be abandoned pursuant to this section if the lessee provides any of the following: (1) At the time the notice of belief of abandonment was given, the rent was not due and unpaid for the time period necessary to declare a rent default under the lessee’s lease. (2) At the time the notice of belief of abandonment was given, it was not reasonable for the lessor to believe that the lessee had abandoned the real property. The fact that the lessor knew that the lessee left personal property on the real property does not, by itself, justify a finding that the lessor did not believe that the lessee had abandoned the real property. (3) Before the date specified in the lessor’s notice, the lessee gave written notice to the lessor stating the lessee’s intent not to abandon the real property and provided an address at which the lessee may be served by certified mail in an action for unlawful detainer of real property. (4) During the period beginning at the start of the applicable rent default period and ending on the date the lease would have terminated pursuant to the notice, the lessee paid to the lessor all or a portion of the rent due and unpaid on the real property. (g) Nothing in this section precludes the lessor or the lessee from otherwise proving that the real property has been abandoned by the lessee within the meaning of Section 1951.2. (h) Nothing in this section precludes the lessor from serving a notice requiring the lessee to pay rent or quit as provided in Section 1161 or 1162 of the Code of Civil Procedure at any time permitted by those sections, or affects the time and manner of giving any other notice required or permitted by law. Giving notice pursuant to this section does not satisfy the requirements of Section 1161 or 1162 of the Code of Civil Procedure. (Added by Stats. 2018, Ch. 104, Sec. 3. (AB 2847) Effective January 1, 2019.)
1951.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A lessor may use this remedy only if the lease says so, and may keep the lease going and recover rent after breach and abandonment if the tenant can sublet or assign under the lease’s permitted terms.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.4. (a) The remedy described in this section is available only if the lease provides for this remedy. In addition to any other type of provision used in a lease to provide for the remedy described in this section, a provision in the lease in substantially the following form satisfies this subdivision: “The lessor has the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has right to sublet or assign, subject only to reasonable limitations).” (b) Even though a lessee of real property has breached the lease and abandoned the property, the lease continues in effect for so long as the lessor does not terminate the lessee’s right to possession, and the lessor may enforce all the lessor’s rights and remedies under the lease, including the right to recover the rent as it becomes due under the lease, if any of the following conditions is satisfied: (1) The lease permits the lessee, or does not prohibit or otherwise restrict the right of the lessee, to sublet the property, assign the lessee’s interest in the lease, or both. (2) The lease permits the lessee to sublet the property, assign the lessee’s interest in the lease, or both, subject to express standards or conditions, provided the standards and conditions are reasonable at the time the lease is executed and the lessor does not require compliance with any standard or condition that has become unreasonable at the time the lessee seeks to sublet or assign. For purposes of this paragraph, an express standard or condition is presumed to be reasonable; this presumption is a presumption affecting the burden of proof. (3) The lease permits the lessee to sublet the property, assign the lessee’s interest in the lease, or both, with the consent of the lessor, and the lease provides that the consent shall not be unreasonably withheld or the lease includes a standard implied by law that consent shall not be unreasonably withheld. (c) For the purposes of subdivision (b), the following do not constitute a termination of the lessee’s right to possession: (1) Acts of maintenance or preservation or efforts to relet the property. (2) The appointment of a receiver upon initiative of the lessor to protect the lessor’s interest under the lease. (3) Withholding consent to a subletting or assignment, or terminating a subletting or assignment, if the withholding or termination does not violate the rights of the lessee specified in subdivision (b). (Amended by Stats. 1991, Ch. 67, Sec. 1.)
1951.5.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Section 1671, on liquidated damages, applies to leases of real property.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.5. Section 1671, relating to liquidated damages, applies to a lease of real property. (Amended by Stats. 1977, Ch. 198.)
1951.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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If a tenant made an advance payment, the lease ended under Section 1951.2, and the tenant asked in writing for notice, the landlord must notify the tenant when the property is relet and include the new tenant’s name and address, lease length, and rent amount.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.7. (a) As used in this section, “advance payment” means moneys paid to the lessor of real property as prepayment of rent, or as a deposit to secure faithful performance of the terms of the lease, or another payment that is the substantial equivalent of either of these. A payment that is not in excess of the amount of one month’s rent is not an advance payment for purposes of this section. (b) The notice provided by subdivision (c) is required to be given only if all of the following apply: (1) The lessee has made an advance payment. (2) The lease is terminated pursuant to Section 1951.2. (3) The lessee has made a request, in writing, to the lessor that he or she be given notice under subdivision (c). (c) Upon the initial reletting of the property, the lessor shall send a written notice to the lessee stating that the property has been relet, the name and address of the new lessee, and the length of the new lease and the amount of the rent. The notice shall be delivered to the lessee personally, or be sent by regular mail to the lessee at the address shown on the request, not later than 30 days after the new lessee takes possession of the property. Notice is not required if the amount of the rent due and unpaid at the time of termination exceeds the amount of the advance payment. (Amended by Stats. 2008, Ch. 179, Sec. 32. Effective January 1, 2009.)
1951.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A lessor under a lease of real property keeps the right to seek equitable relief when that relief is appropriate.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1951.8. Nothing in Section 1951.2 or 1951.4 affects the right of the lessor under a lease of real property to equitable relief where such relief is appropriate. (Added by Stats. 1970, Ch. 89.)
1952.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section limits how Sections 1951 to 1951.8 affect unlawful detainer and related actions, and it limits when a lessor can use the Section 1951.4 remedy after obtaining possession.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952. (a) Except as provided in subdivision (c), nothing in Sections 1951 to 1951.8, inclusive, affects the provisions of Chapter 4 (commencing with Section 1159) of Title 3 of Part 3 of the Code of Civil Procedure, relating to actions for unlawful detainer, forcible entry, and forcible detainer. (b) Unless the lessor amends the complaint as provided in paragraph (1) of subdivision (a) of Section 1952.3 to state a claim for damages not recoverable in the unlawful detainer proceeding, the bringing of an action under the provisions of Chapter 4 (commencing with Section 1159) of Title 3 of Part 3 of the Code of Civil Procedure does not affect the lessor’s right to bring a separate action for relief under Sections 1951.2, 1951.5, and 1951.8, but no damages shall be recovered in the subsequent action for any detriment for which a claim for damages was made and determined on the merits in the previous action. (c) After the lessor obtains possession of the property under a judgment pursuant to Section 1174 of the Code of Civil Procedure, he is no longer entitled to the remedy provided under Section 1951.4 unless the lessee obtains relief under Section 1179 of the Code of Civil Procedure. (Amended by Stats. 1977, Ch. 49.)
1952.2.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
Verify source ↗

Sections 1951 to 1952 do not apply to certain older leases.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.2. Sections 1951 to 1952, inclusive, do not apply to: (a) Any lease executed before July 1, 1971. (b) Any lease executed on or after July 1, 1971, if the terms of the lease were fixed by a lease, option, or other agreement executed before July 1, 1971. (Added by Stats. 1970, Ch. 89.)
1952.3.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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If possession has been returned to the lessor before trial or judgment, the unlawful detainer case turns into an ordinary civil action, and the lessor or defendant can seek broader relief and defenses subject to stated conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.3. (a) Except as provided in subdivisions (b) and (c), if the lessor brings an unlawful detainer proceeding and possession of the property is no longer in issue because possession of the property has been delivered to the lessor before trial or, if there is no trial, before judgment is entered, the case becomes an ordinary civil action in which: (1) The lessor may obtain any relief to which he is entitled, including, where applicable, relief authorized by Section 1951.2; but, if the lessor seeks to recover damages described in paragraph (3) of subdivision (a) of Section 1951.2 or any other damages not recoverable in the unlawful detainer proceeding, the lessor shall first amend the complaint pursuant to Section 472 or 473 of the Code of Civil Procedure so that possession of the property is no longer in issue and to state a claim for such damages and shall serve a copy of the amended complaint on the defendant in the same manner as a copy of a summons and original complaint is served. (2) The defendant may, by appropriate pleadings or amendments to pleadings, seek any affirmative relief, and assert all defenses, to which he is entitled, whether or not the lessor has amended the complaint; but subdivision (a) of Section 426.30 of the Code of Civil Procedure does not apply unless, after delivering possession of the property to the lessor, the defendant (i) files a cross-complaint or (ii) files an answer or an amended answer in response to an amended complaint filed pursuant to paragraph (1). (b) The defendant’s time to respond to a complaint for unlawful detainer is not affected by the delivery of possession of the property to the lessor; but, if the complaint is amended as provided in paragraph (1) of subdivision (a), the defendant has the same time to respond to the amended complaint as in an ordinary civil action. (c) The case shall proceed as an unlawful detainer proceeding if the defendant’s default (1) has been entered on the unlawful detainer complaint and (2) has not been opened by an amendment of the complaint or otherwise set aside. (d) Nothing in this section affects the pleadings that may be filed, relief that may be sought, or defenses that may be asserted in an unlawful detainer proceeding that has not become an ordinary civil action as provided in subdivision (a). (Added by Stats. 1977, Ch. 49.)
1952.4.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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An agreement to explore for or remove natural resources is not treated as a lease of real property for Sections 1951 to 1952.2.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.4. An agreement for the exploration for or the removal of natural resources is not a lease of real property within the meaning of Sections 1951 to 1952.2, inclusive. (Added by Stats. 1970, Ch. 89.)
1952.6.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section limits when certain lease-remedy rules apply to public-entity real property leases, and lets a public entity lessee in a qualifying capital lease waive listed remedies and use another lawful remedy.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.6. (a) Sections 1951 to 1952.2, inclusive, shall not apply to any lease or agreement for a lease of real property between any public entity and any nonprofit corporation whose title or interest in the property is subject to reversion to or vesting in a public entity and which issues bonds or other evidences of indebtedness, the interest on which is exempt from federal income taxes for the purpose of acquiring, constructing, or improving the property or a building or other facility thereon, or between any public entity and any other public entity, unless the lease or the agreement shall specifically provide that Sections 1951 to 1952.2, inclusive, or any portions thereof, are applicable to the lease or the agreement. (b) Except as provided in subdivision (a), a public entity lessee in a contract for a capital lease of real property involving the payment of rents of one million dollars ($1,000,000) or more may elect to waive any of the remedies for a breach of the lease provided in Sections 1951 to 1952.2, inclusive, and contract instead for any other remedy permitted by law. As used in this subdivision, “capital lease” refers to a lease entered into for the purpose of acquiring, constructing, or improving the property or a building or other facility thereon. (c) As used in this section, “public entity” includes the state, a county, city and county, city, district, public authority, public agency, or any other political subdivision or public corporation. (Amended by Stats. 1989, Ch. 613, Sec. 1.)
1952.7.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section limits lease terms that block or unreasonably restrict electric vehicle charging stations on commercial property, and it sets approval, insurance, cost, and installation rules for lessors and lessees.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.7. (a) (1) Any term in a lease that is executed, renewed, or extended on or after January 1, 2015, that conveys any possessory interest in commercial property that either prohibits or unreasonably restricts the installation or use of an electric vehicle charging station in a parking space associated with the commercial property, or that is otherwise in conflict with the provisions of this section, is void and unenforceable. (2) This subdivision does not apply to provisions that impose reasonable restrictions on the installation of electric vehicle charging stations. However, it is the policy of the state to promote, encourage, and remove obstacles to the use of electric vehicle charging stations. (3) This subdivision shall not grant the holder of a possessory interest under the lease described in paragraph (1) the right to install electric vehicle charging stations in more parking spaces than are allotted to the leaseholder in his or her lease, or, if no parking spaces are allotted, a number of parking spaces determined by multiplying the total number of parking spaces located at the commercial property by a fraction, the denominator of which is the total rentable square feet at the property, and the numerator of which is the number of total square feet rented by the leaseholder. (4) If the installation of an electric vehicle charging station has the effect of granting the leaseholder a reserved parking space and a reserved parking space is not allotted to the leaseholder in the lease, the owner of the commercial property may charge a reasonable monthly rental amount for the parking space. (b) This section shall not apply to any of the following: (1) A commercial property where charging stations already exist for use by tenants in a ratio that is equal to or greater than 2 available parking spaces for every 100 parking spaces at the commercial property. (2) A commercial property where there are less than 50 parking spaces. (c) For purposes of this section: (1) “Electric vehicle charging station” or “charging station” means a station that is designed in compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this section, and delivers electricity from a source outside an electric vehicle into one or more electric vehicles. (2) “Reasonable costs” includes, but is not limited to, costs associated with those items specified in the “Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” published by the Office of Planning and Research. (3) “Reasonable restrictions” or “reasonable standards” are restrictions or standards that do not significantly increase the cost of the electric vehicle charging station or its installation or significantly decrease the charging station’s efficiency or specified performance. (d) An electric vehicle charging station shall meet applicable health and safety standards and requirements imposed by state and local authorities as well as all other applicable zoning, land use, or other ordinances, or land use permit requirements. (e) If lessor approval is required for the installation or use of an electric vehicle charging station, the application for approval shall not be willfully avoided or delayed. The approval or denial of an application shall be in writing. (f) An electric vehicle charging station installed by a lessee shall satisfy the following provisions: (1) If lessor approval is required, the lessee first shall obtain approval from the lessor to install the electric vehicle charging station and the lessor shall approve the installation if the lessee complies with the applicable provisions of the lease consistent with the provisions of this section and agrees in writing to do all of the following: (A) Comply with the lessor’s reasonable standards for the installation of the charging station. (B) Engage a licensed contractor to install the charging station. (C) Within 14 days of approval, provide a certificate of insurance that names the lessor as an additional insured under the lessee’s insurance policy in the amount set forth in paragraph (3). (2) The lessee shall be responsible for all of the following: (A) Costs for damage to property and the charging station resulting from the installation, maintenance, repair, removal, or replacement of the charging station. (B) Costs for the maintenance, repair, and replacement of the charging station. (C) The cost of electricity associated with the charging station. (3) The lessee at all times, shall maintain a lessee liability coverage policy in the amount of one million dollars ($1,000,000), and shall name the lessor as a named additional insured under the policy with a right to notice of cancellation and property insurance covering any damage or destruction caused by the charging station, naming the lessor as its interests may appear. (g) A lessor may, in its sole discretion, create a new parking space where one did not previously exist to facilitate the installation of an electric vehicle charging station, in compliance with all applicable laws. (h) Any installation by a lessor or a lessee of an electric vehicle charging station in a common interest development is also subject to all of the requirements of subdivision (f) of Section 4745. (Amended by Stats. 2016, Ch. 714, Sec. 4. (SB 944) Effective January 1, 2017.)
1952.8.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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An owner of a gasoline service station generally may not lease the station for use as a gasoline service station unless the vapor-control conditions in the section are met.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1952.8. On and after the effective date of this section, no owner of a gasoline service station shall enter into a lease with any person for the leasing of the station for the purpose of operating a gasoline service station, unless (a) the station is equipped with a vapor control system for the control of gasoline vapor emissions during gasoline marketing operations, including storage, transport, and transfer operations, if such vapor control system is required by law or by any rule or regulation of the State Air Resources Board or of the air pollution control district in which the station is located or (b) no vapor control system has been certified by the board prior to the date of the lease. A lease entered into in violation of this section shall be voidable at the option of the lessee. (Added by Stats. 1976, Ch. 1030.)
1953.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Some lease or rental agreement terms for dwellings are void if they make the tenant give up specified rights, and the section applies only to leases and rental agreements executed on or after January 1, 1976.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1953. (a) Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: (1) His rights or remedies under Section 1950.5 or 1954. (2) His right to assert a cause of action against the lessor which may arise in the future. (3) His right to a notice or hearing required by law. (4) His procedural rights in litigation in any action involving his rights and obligations as a tenant. (5) His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law. (b) Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive a statutory right, where the modification or waiver is not void under subdivision (a) or under Section 1942.1, 1942.5, or 1954, shall be void as contrary to public policy unless the lease or rental agreement is presented to the lessee before he takes actual possession of the premises. This subdivision does not apply to any provisions modifying or waiving a statutory right in agreements renewing leases or rental agreements where the same provision was also contained in the lease or rental agreement which is being renewed. (c) This section shall apply only to leases and rental agreements executed on or after January 1, 1976. (Added by Stats. 1975, Ch. 302.)
1954.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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A landlord may enter a dwelling unit only for listed reasons, and usually must give written notice and enter during normal business hours.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1954. (a) A landlord may enter the dwelling unit only in the following cases: (1) In case of emergency. (2) To make necessary or agreed repairs, decorations, alterations or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors or to make an inspection pursuant to subdivision (f) of Section 1950.5. (3) When the tenant has abandoned or surrendered the premises. (4) Pursuant to court order. (5) For the purposes set forth in Chapter 2.5 (commencing with Section 1954.201). (6) To comply with the provisions of Article 2.2 (commencing with Section 17973) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code. (b) Except in cases of emergency or when the tenant has abandoned or surrendered the premises, entry may not be made during other than normal business hours unless the tenant consents to an entry during other than normal business hours at the time of entry. (c) The landlord may not abuse the right of access or use it to harass the tenant. (d) (1) Except as provided in subdivision (e), or as provided in paragraph (2) or (3), the landlord shall give the tenant reasonable notice in writing of his or her intent to enter and enter only during normal business hours. The notice shall include the date, approximate time, and purpose of the entry. The notice may be personally delivered to the tenant, left with someone of a suitable age and discretion at the premises, or, left on, near, or under the usual entry door of the premises in a manner in which a reasonable person would discover the notice. Twenty-four hours shall be presumed to be reasonable notice in absence of evidence to the contrary. The notice may be mailed to the tenant. Mailing of the notice at least six days prior to an intended entry is presumed reasonable notice in the absence of evidence to the contrary. (2) If the purpose of the entry is to exhibit the dwelling unit to prospective or actual purchasers, the notice may be given orally, in person or by telephone, if the landlord or his or her agent has notified the tenant in writing within 120 days of the oral notice that the property is for sale and that the landlord or agent may contact the tenant orally for the purpose described above. Twenty-four hours is presumed reasonable notice in the absence of evidence to the contrary. The notice shall include the date, approximate time, and purpose of the entry. At the time of entry, the landlord or agent shall leave written evidence of the entry inside the unit. (3) The tenant and the landlord may agree orally to an entry to make agreed repairs or supply agreed services. The agreement shall include the date and approximate time of the entry, which shall be within one week of the agreement. In this case, the landlord is not required to provide the tenant a written notice. (e) No notice of entry is required under this section: (1) To respond to an emergency. (2) If the tenant is present and consents to the entry at the time of entry. (3) After the tenant has abandoned or surrendered the unit. (Amended by Stats. 2018, Ch. 445, Sec. 1. (SB 721) Effective January 1, 2019.)
1954.05.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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An assignee in a general assignment for creditors may occupy the assigned business premises for up to 90 days after the assignment, if monthly rent is paid when due.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1954.05. In any general assignment for the benefit of creditors, as defined in Section 493.010 of the Code of Civil Procedure, the assignee shall have the right to occupy, for a period of up to 90 days after the date of the assignment, any business premises held under a lease by the assignor upon payment when due of the monthly rental reserved in the lease for the period of such occupancy, notwithstanding any provision in the lease, whether heretofore or hereafter entered into, for the termination thereof upon the making of the assignment or the insolvency of the lessee or other condition relating to the financial condition of the lessee. This section shall be construed as establishing the reasonable rental value of the premises recoverable by a landlord upon a holding-over by the tenant upon the termination of a lease under the circumstances specified herein. (Added by renumbering Section 1954.1 by Stats. 2016, Ch. 599, Sec. 2. (AB 551) Effective January 1, 2017.)
1954.06.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords of assisted housing developments must offer tenants the option to have rental payments reported to a qualifying consumer reporting agency, and tenants can opt in or stop reporting.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1954.06. (a) As specified in subdivision (b), and except as provided in subdivision (j), beginning July 1, 2021, any landlord of an assisted housing development shall offer the tenant or tenants obligated on the lease of each unit in that housing development the option of having the tenant’s rental payment information reported to at least one nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(p)) or any other consumer reporting agency that meets the definition in Section 603(f) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)) so long as the consumer reporting agency resells or otherwise furnishes rental payment information to a nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a(p)). A tenant’s election to have rent reported under this subdivision shall be in writing, as described in subdivision (c). (b) For leases entered into on and after July 1, 2021, the offer of rent reporting shall be made at the time of the lease agreement and at least once annually thereafter. For leases outstanding as of July 1, 2021, the offer of rent reporting shall be made no later than October 1, 2021, and at least once annually thereafter. (c) Upon the agreement of the tenant, the landlord may provide the offer of rent reporting to the tenant by first-class United States mail or email. The offer of rent reporting shall include a written election of rent reporting that contains all of the following: (1) A statement that reporting of the tenant’s rental payment information is optional. (2) Identification of each consumer reporting agency to which rental payment information will be reported. (3) If applicable, a statement that all of the tenant’s rental payments will be reported, regardless of whether the payments are timely, late, or missed. (4) The amount of any fee charged pursuant to subdivision (f). (5) Instructions on how to submit the written election of rent reporting to the landlord by first-class United States mail or email. (6) A statement that the tenant may opt into rent reporting at any time following the initial offer by the landlord. (7) A statement that the tenant may elect to stop rent reporting at any time, but that they will not be able to resume rent reporting for at least six months after their election to opt out. (8) Instructions on how to opt out of reporting rental payment information. (9) A signature block that the tenant shall date and sign in order to accept the offer of rent reporting. (d) If the offer of rent reporting is made by first-class United States mail, the landlord shall provide the tenant with a self-addressed, stamped envelope to return the written election of rent reporting. (e) The written election to begin rent reporting shall not be accepted from the tenant at the time of the offer. A tenant may submit their completed written election of rent reporting at any time after they receive the offer of rent reporting from the landlord. A tenant may request and shall obtain additional copies of the written election of rent reporting form from the landlord at any time. (f) If a tenant elects to have that tenant’s rental payments reported to a consumer reporting agency under subdivision (a), the landlord may require that tenant to pay a fee not to exceed the lesser of the actual cost to the landlord to provide the service or ten dollars ($10) per month. The payment or nonpayment of this fee by the tenant shall not be reported to a consumer reporting agency. (g) If a tenant fails to pay any fee required by the landlord pursuant to subdivision (f), all of the following shall apply: (1) The failure to pay the fee shall not be cause for termination of the tenancy, whether pursuant to Section 1161 of the Code of Civil Procedure or otherwise. (2) The landlord shall not deduct the unpaid fee from the tenant’s security deposit. (3) If the fee remains unpaid for 30 days or more, the landlord may stop reporting the tenant’s rental payments and the tenant shall be unable to elect rent reporting again for a period of six months from the date on which the fee first became due. (h) A tenant who elects to have rent reported as described in subdivision (a) may subsequently file a written request with their landlord to stop that reporting with which the landlord shall comply. A tenant who elects to stop reporting shall not be allowed to elect rent reporting again for a period of at least six months from the date of the tenant’s written request to stop reporting. (i) A tenant who elects to have rent reported does not forfeit any rights under Sections 1941 to 1942, inclusive. If a tenant makes deductions from rent or otherwise withholds rent as authorized by those sections, the deductions or withholding of rent shall not constitute a late rental payment. A tenant invoking the right to repair and deduct or withhold rent under those sections shall notify their landlord of the deduction or withholding prior to the date rent is due. This subdivision shall not be construed to relieve a housing provider of the obligation to maintain habitable premises. (j) This section shall not apply to any landlord of an assisted housing development that contains 15 or fewer dwelling units, unless both of the following apply: (1) The landlord owns more than one assisted housing development, regardless of the number of units in each assisted housing development. (2) The landlord is one of the following: (A) A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code. (B) A corporation. (C) A limited liability company in which at least one member is a corporation. (k) For purposes of this section, the following definitions shall apply: (1) “Assisted housing development” has the same meaning as defined in Section 65863.10 of the Government Code. (2) “Landlord” means an owner of residential real property containing five or more dwelling units. (Amended by Stats. 2024, Ch. 519, Sec. 1. (SB 924) Effective January 1, 2025.)
1954.07.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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Landlords must offer tenants the option to report positive rental payment information to a qualifying consumer reporting agency, and tenants can later stop or opt in to reporting.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1954.07. (a) As specified in subdivision (b), and except as provided in subdivision (j), any landlord of a dwelling unit of residential real property shall offer any tenant obligated on the lease the option of having the tenant’s positive rental payment information reported to at least one nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)) or any other consumer reporting agency that meets the definition in Section 603(f) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(f)) as long as the consumer reporting agency resells or otherwise furnishes rental payment information to a nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)). (b) For leases entered into on and after April 1, 2025, the offer of positive rental payment information reporting shall be made at the time of the lease agreement and at least once annually thereafter. For leases outstanding as of January 1, 2025, the offer of positive rental payment information reporting shall be made no later than April 1, 2025, and at least once annually thereafter. (c) A landlord may provide the offer of positive rental payment information reporting required by subdivision (a) to the tenant by first-class United States mail or email. (d) The offer of positive rental payment information reporting shall include a written election of positive rental payment information reporting that contains all of the following: (1) A statement that reporting of the tenant’s positive rental payment information is optional. (2) Identification of each consumer reporting agency to which positive rental payment information will be reported. (3) The amount of any fee charged pursuant to subdivision (g). (4) Instructions on how to submit the written election of positive rental payment information reporting to the landlord by first-class United States mail or email. (5) A statement that the tenant may opt into positive rental payment information reporting at any time following the initial offer by the landlord. (6) A statement that the tenant may elect to stop positive rental payment information reporting at any time, but that the tenant will not be able to resume positive rental payment information reporting for at least six months after the election to opt out. (7) Instructions on how to opt out of positive rental payment information reporting. (8) A signature block that the tenant shall date and sign in order to accept the offer of positive rental payment information reporting. (e) If the offer of positive rental payment information reporting is made by first-class United States mail, the landlord shall provide the tenant with a self-addressed, stamped envelope to return the written election of positive rental payment information reporting. (f) (1) A tenant may submit the tenant’s completed written election of rent reporting at any time after the tenant receives the offer of positive rental payment information reporting from the landlord. (2) (A) A tenant may request additional copies of the written election of positive rental payment information reporting from the landlord at any time. (B) A landlord that receives a request from a tenant pursuant to this paragraph shall comply with the request. (g) (1) If a tenant elects to have that tenant’s positive rental payment information reported to a consumer reporting agency under subdivision (a), the landlord may require that tenant to pay a fee not to exceed the lesser of the actual cost to the landlord to provide the service or ten dollars ($10) per month. If the landlord does not incur any actual cost to report positive rental payment information, no amount shall be charged from the tenant. The payment or nonpayment of this fee by the tenant shall not be reported to a consumer reporting agency. (2) An amount tendered in full or partial satisfaction of rent or any other obligation under the lease, however designated by the party tendering the payment, shall not be applied or credited to the fee authorized by this subdivision. (h) If a tenant fails to pay any fee required by the landlord pursuant to subdivision (g), all of the following shall apply: (1) The failure to pay the fee shall not be cause for termination of the tenancy, whether pursuant to Section 1161 of the Code of Civil Procedure or otherwise. (2) The landlord shall not deduct the unpaid fee from the tenant’s security deposit. (3) If the fee remains unpaid for 30 days or more, the landlord may stop reporting the tenant’s rental payments, and the tenant shall not elect positive rental payment information reporting again for a period of six months from the date on which the fee first became due. (i) A tenant who elects to have positive rental payment information reported as described in subdivision (a) may subsequently file a written request with the tenant’s landlord to stop that reporting with which the landlord shall comply. A tenant who elects to stop reporting shall not be allowed to elect positive rental payment information reporting again for a period of at least six months from the date of the tenant’s written request to stop reporting. (j) This section shall not apply to either of the following: (1) A landlord of a residential rental building that contains 15 or fewer dwelling units, unless both of the following apply: (A) The landlord owns more than one residential rental building, regardless of the number of units in each building. (B) The landlord is one of the following: (i) A real estate investment trust, as defined in Section 856 of Title 26 of the United States Code. (ii) A corporation. (iii) A limited liability company in which at least one member is a corporation. (2) An assisted housing development, as defined in Section 65863.10 of the Government Code. (k) A tenant who elects to have rent reported does not forfeit any rights under Sections 1941 to 1942, inclusive. If a tenant makes deductions from rent or otherwise withholds rent as authorized by those sections, the deductions or withholding of rent shall not constitute a late rental payment. A tenant invoking the right to repair and deduct or withhold rent under those sections shall notify the tenant’s landlord of the deduction or withholding prior to the date rent is due. This subdivision shall not be construed to relieve a housing provider of the obligation to maintain habitable premises. (l) (1) As used in this section, “positive rental payment information” means information regarding a tenant’s complete, timely payments of rent. (2) “Positive rental payment information” does not include an instance in which a tenant did not completely or timely make a rental payment. (Added by Stats. 2024, Ch. 279, Sec. 1. (AB 2747) Effective January 1, 2025.)
1954.071.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. )
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This section gives special rules for guests staying in lodging because a disaster damaged their prior housing, including a 270-day tenant-status rule and notice requirements.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2. Hiring of Real Property [1940 - 1954.071] ( Chapter 2 enacted 1872. ) ## 1954.071. (a) For purposes of this section: (1) “Disaster” means an event or circumstance that results in a federal major disaster declaration approved by the President of the United States or a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code. (2) “Lodging” means any of the following: (A) A motel. (B) A hotel. (C) A property that meets either of the following conditions: (i) If a local government had a registration, licensure, or similar requirement for short-term lodgings of 30 days or less on the date the disaster was declared or proclaimed, the property was in compliance with that requirement on that date. (ii) If a local government did not have a registration, licensure, or similar requirement for short-term lodgings on the date the disaster was declared or proclaimed, the property met the definition of “short-term lodging,” as defined in Section 17568.8 of the Business and Professions Code, on that date. (b) A guest residing in a lodging shall not be considered a person who hires pursuant to Section 1940, nor have their lodging constitute a new tenancy for the purposes of Section 1161 of the Code of Civil Procedure, until the guest has resided in the lodging for 270 days, if the guest is residing in the lodging as a result of a disaster that substantially damaged, destroyed, or otherwise made uninhabitable their prior housing. (c) If, before or at the time of check-in for a stay that would result in the guest residing in a lodging for more than 30 consecutive days, the lodging believes that the guest is subject to subdivision (b), the lodging shall provide the following notice in physical or electronic written form, in at least 12-point type or substantially the same form: “NOTICE FROM THE STATE OF CALIFORNIA: Under California law, if you are staying here because your home has been damaged, destroyed, or made uninhabitable because of a disaster, state law will not consider you a tenant unless you have stayed here for 270 consecutive days or more. If you have been displaced by a disaster and you stay here for more than 30 days but have not yet stayed here for 270 consecutive days, the lodging is not required to extend your reservation but must give you 72 hours notice before requiring you to leave, subject to certain conditions. You are being provided with this notice because the operator of this establishment believes you are staying here because you were displaced by a disaster and thus that, if you stay beyond 30 days, the above-described rules will apply to your stay until your stay lasts for 270 days or more.” (d) (1) After providing the notice described in subdivision (c), the lodging shall provide the guest with a confirmation form with the option to physically or electronically check one of the following statements: (A) “I have read the provided notice and confirm that I am checking into this lodging or extending my stay because my home has been substantially damaged, destroyed, or made uninhabitable by a disaster and acknowledge that I will not be considered a tenant unless I have stayed here for 270 consecutive days.” (B) “I have read the provided notice and confirm that I am not checking into this lodging or extending my stay because my home has been substantially damaged, destroyed, or made uninhabitable by a disaster and acknowledge this does not apply to me.” (2) If a guest fails or refuses to select either of the statements specified in paragraph (1), the lodging may rely on other reasonable information to determine that a guest is subject to subdivision (b). (3) If a guest fails or refuses to select either of the statements specified in paragraph (1), the lodging may limit the duration of stay or refuse to provide the guest accommodations. (e) (1) Except as provided in paragraph (2), if a guest who is subject to subdivision (b) has resided in a lodging for more than 30 days, the lodging operator shall provide a written notice to the guest at least 72 hours before requiring the guest to vacate the lodging. (2) A lodging shall not be required to provide a guest who is subject to subdivision (b) the notice described in paragraph (1) prior to requiring the guest to vacate the lodging if any of the following apply: (A) The guest fails at any time to pay when due all room charges, fees, expenses, and other amounts owing. (B) The guest interferes with the quiet enjoyment of other guests at the lodging. (C) The lodging has reasonable grounds to believe that the guest has damaged, is damaging, or will damage any lodging or other property. (D) The lodging has reasonable grounds to believe that the guest poses a risk of harm to other guests, employees, or others lawfully on the lodging property. (f) This section does not apply to a guest residing in a lodging for a reason other than a disaster substantially damaging, destroying, or otherwise making uninhabitable their prior housing. (g) This section shall remain in effect only until January 1, 2031, and as of that date is repealed. (Added by Stats. 2025, Ch. 531, Sec. 1. (AB 299) Effective October 10, 2025. Repealed as of January 1, 2031, by its own provisions.)
1954.08.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. )
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This section defines terms used for interim homelessness program occupancy and requires shelter program operators to make a good-faith effort to locate a participant who self-exits.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. ) ## 1954.08. For the purposes of this chapter, the following definitions apply: (a) “Harm-reduction” means a set of strategies, policies, and practices aimed at mitigating the negative social and physical consequences associated with various human behaviors, including, but not limited to, substance use, and that do not rely on punitive measures to gain program compliance. (b) “Motel or hotel” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment. (c) “Self-exit” means when a shelter program participant voluntarily leaves a shelter program, including for a reason unknown to the shelter program operator, and does not return to the site or make reasonable contact with the shelter program operator within 72 hours of leaving. The shelter program operator shall contact hospitals, jails, and any other relevant sites to make a good faith effort to determine the location of the individual and if their exit from the program was voluntary. (d) “Shelter program” means a city-, county-, continuum of care-, state-, or federally funded shelter, interim housing, motel voucher, or emergency shelter program in which the city, county, continuum of care, state, or federal governmental entity retains an oversight and accountability role in ensuring compliance with program regulations and proper program administration. (e) “Shelter program administrator” means a city, county, or continuum of care entity that retains an oversight role in ensuring compliance with program regulations and proper program administration. (f) “Shelter program operator” means a service provider agency that is contracting with a shelter program administrator to carry out the operations of the shelter program. A “shelter program operator” may include community-based service providers as well as public government agencies carrying out program operations. (g) “Shelter program participant” means an occupant of a motel, hotel, or other shelter site whose occupancy is solely due to their participation in a shelter program. (h) “Trauma-informed” means a set of practices that promote safety, empowerment, and healing in recognition that program participants may have experienced trauma that informs their experiences and responses. (Amended by Stats. 2024, Ch. 209, Sec. 1. (AB 2835) Effective January 1, 2025.)
1954.09.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. )
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Shelter program occupants are generally not treated as new tenants, but only if the program meets listed notice, grievance, termination, and support requirements.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. ) ## 1954.09. (a) Notwithstanding paragraph (1) of subdivision (b) of Section 1954.091, shelter program participants shall not have their continued occupancy in a motel, hotel, or shelter program constitute a new tenancy and shall not be considered persons who hire pursuant to Section 1940 for the purposes of Section 1161 of the Code of Civil Procedure, if the shelter program meets all of the following requirements: (1) The shelter program adheres to the core components of Housing First, pursuant to subdivision (b) of Section 8255 of the Welfare and Institutions Code. (2) The shelter program establishes, adopts, and clearly documents rules governing how and for what reasons a shelter program participant’s enrollment may be terminated and the shelter program operator discloses the termination policy to program participants in writing, in plain language, at the commencement of their occupancy. (A) Permissible reasons for termination shall include sexual assault, verbally or physically threatening behaviors that rise to the level of a “direct threat” to persons or property as defined in paragraph (3) of subdivision (b) of Section 12179 of Title 2 of the California Code of Regulations, physical violence to staff, hotel guests, or other program participants, direct observation of participant engaging in illegal activity onsite, or time limits established by the shelter program. (B) Terminations for reasons not stated in subparagraph (A) and any operational policies negotiated prior to the commencement of the shelter program shall be approved by the shelter program administrator and shared with their shelter program participants in a clearly labeled document. (C) The shelter program administrator shall endeavor to ensure terminations are performed by the shelter program operator in a trauma-informed manner utilizing a harm-reduction approach, and shall ensure that the termination policies and procedures of the hotel, motel, and shelter program, including the required grievance procedure, comply with all applicable disability laws, including requirements for reasonable accommodation. (D) The shelter program operator is exempt from providing a 30-day notice pursuant to subparagraph (A) of paragraph (3) if the shelter program participant has self-exited from the program. (E) If a shelter program participant will exit from the program due to time limits and the participant’s stay is extended for a period of less than 30 days beyond the original termination date, the shelter program administrator or shelter program operator may issue an amended termination notice with an additional period of time equal to the number of days of the program extension. (3) The shelter program administrator establishes procedures regarding how a shelter program participant will be provided a written termination notice if a termination occurs and the shelter program operator discloses those procedures to shelter program participants in writing at the commencement of their occupancy. (A) The shelter program operator shall provide the termination notice to the participant at least 30 days prior to the proposed termination or, if the underlying cause for a proposed termination constitutes a “direct threat,” as defined in paragraph (3) of subdivision (b) of Section 12179 of Title 2 of the Code of California Regulations, the shelter program operator may remove the participant from the premises immediately, provided that the operator advises the participant of their right to utilize the grievance process described in paragraph (5). (B) The termination notice shall contain a clear, plain-language statement of the reason for the termination, shall notify the participant of their right to request a reasonable accommodation if they are a qualified person with a disability, and shall notify the participant of their right to utilize the grievance process described in paragraph (5). (C) The established procedures developed regarding participant guideline violations shall include an escalation continuum that incorporates documented warnings and documented shelter program operator staff and participant problem solving methods prior to instituting terminations from the shelter program. (4) The shelter program operator shall provide an exit plan upon termination of a shelter program participant that includes referrals to any available local shelter service for which the participant is eligible and the shelter program operator shall make a good faith, reasonable effort to facilitate an intake for that participant in an available bed or unit. (A) The shelter program operator shall document good faith, reasonable efforts and shall make that documentation available upon request. (B) The shelter program administrator, in cases where the grievance process is utilized, shall determine whether the shelter program operator’s efforts constitute a good faith effort to facilitate a participant into an alternative available shelter site or program. (C) (i) The shelter program administrator shall make good faith efforts to provide reasonable transportation accommodations upon termination of a shelter program participant from a program or upon transfer of a shelter program participant to an alternative available bed or unit. (ii) In exigent circumstances that necessitate the presence of first responders, police, or fire department and render it infeasible to provide a termination letter at that time or coordinate a postexit plan, the shelter program operator shall create a termination letter that satisfies the above-described requirements and make that documentation available to participants within 24 hours of their request. (5) The shelter program administrator shall establish a grievance process that complies with due process and the shelter program operator shall disclose the grievance process to occupants in writing, in plain language, at the commencement of their occupancy. (A) The grievance process shall give shelter program participants a right to due process appeal through the shelter program administrator if the shelter program participant believes they were or are being wrongfully terminated from the program, and shall inform shelter program participants on how to access and initiate the grievance process. (B) (i) Program participants shall be provided the opportunity to initiate the grievance process 30 days prior to their proposed termination date or at any point thereafter. (ii) In cases where participants are subject to immediate removal based on circumstances that present a “direct threat,” as defined in paragraph (3) of subdivision (b) of Section 12179 of Title 2 of the California Code of Regulations, participants shall be provided the opportunity to initiate the grievance process at the time of removal or at any point thereafter. (C) If, following the grievance process, the proposed termination is not carried out, any participant already removed shall be granted the right to resume their participation in the program. If the shelter program operator is unable to place the individual in the original site, the shelter program operator shall facilitate a placement for the individual in an alternative available motel, hotel, or shelter site. (b) Where a shelter program administrator is also the shelter program operator, the shelter program administrator is responsible for all of the duties described in subdivision (a). (c) For properties that are being converted from use as a motel or hotel, or from use as a shelter, interim housing, emergency shelter, or other interim facility to a permanent housing site, paragraph (2) shall not apply to occupants of the site from the date that the site receives a certificate of occupancy as a permanent housing site. (Amended by Stats. 2025, Ch. 67, Sec. 30. (AB 1170) Effective January 1, 2026.)
1954.091.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. )
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For qualifying shelter program participants, the law says a motel or hotel stay is not a new tenancy, and they are entitled to written termination information, notice of the termination procedure, 30 days’ notice before termination, and an appeal right.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. ) ## 1954.091. (a) Section 310.3 of Chapter 3 (commencing with Section 301.1) of Part 2 of Title 24 (the California Building Standards Code) of the California Code of Regulations shall not be interpreted to restrict the duration of occupancy for shelter program participants. (b) (1) This chapter shall not be interpreted to either confer or deny any tenant rights or protections for persons who hire pursuant to Section 1940, or any rights that the tenant may otherwise be entitled to under any applicable federal, state, or local law. (2) Notwithstanding paragraph (1), a shelter program participant of a shelter program that complies with the requirements described in Section 1954.09 shall be entitled to all of the following: (A) A shelter program participant’s continued occupancy in a motel or hotel does not constitute a new tenancy. (B) A shelter program participant shall not be considered a person who hires pursuant to Section 1940 for the purposes of Section 1161 of the Code of Civil Procedure. (C) Receipt of a written termination policy. (D) Disclosure of a termination notice procedure. (E) Thirty days’ notice prior to termination, except as described in Section 1954.09. (F) Right to appeal termination pursuant to the grievance policy required by Section 1954.09. (Added by Stats. 2022, Ch. 645, Sec. 1. (AB 1991) Effective January 1, 2023.)
1954.092.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. )
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Hotels and motels may not treat shelter program participants differently in ways that would designate the property as nontransient, restrict access, add special fees, or require check-out/reregistration to avoid tenancy rights.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.4. Occupancy in Interim Homelessness Programs [1954.08 - 1954.092] ( Chapter 2.4 added by Stats. 2022, Ch. 645, Sec. 1. ) ## 1954.092. (a) A motel or hotel shall not be designated as a nontransient motel or a nontransient hotel pursuant to Section 310.4 of Chapter 3 (commencing with Section 301.1) of Part 2 of Title 24 (the California Building Standards Code) of the California Code of Regulations solely as a result of a shelter program participant’s occupancy in the motel or hotel beyond a 30-day period. (b) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (a) of Section 1954.09, a hotel or motel shall not do either of the following: (1) (A) Adopt termination policies specifically for motel or hotel occupants who are shelter program participants that do not apply to other motel or hotel occupants who are not participating in a shelter program, impose restrictions on the ability of program participants to freely enter or exit the property or access certain areas or amenities of the property that do not apply to other motel or hotel occupants, or levy charges and fees, including fees for room card replacements, that do not apply to other motel or hotel occupants. (B) This paragraph sets minimum standards for shelter program terminations and shall not be construed to restrict shelter program operating standards that confer greater rights to participants with regard to shelter program terminations. (2) Require shelter program participants to check out and reregister, move out of rooms or between rooms, or from the hotel or motel while actively enrolled in the shelter program for the purposes of preventing an occupant from establishing rights of tenancy. (Amended by Stats. 2024, Ch. 209, Sec. 3. (AB 2835) Effective January 1, 2025.)
1954.10.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. )
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This section says Chapter 2.5 is called the Transitional Housing Participant Misconduct Act and may be cited by that name.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.10. This chapter shall be known and may be cited as the Transitional Housing Participant Misconduct Act. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.11.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. )
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The Legislature states its intent to prevent repeated acts of substantial disruption or violence in transitional housing programs.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.11. In enacting this chapter, it is the intent of the Legislature to prevent the recurrence of acts of substantial disruption or violence by participants in transitional housing programs against other such participants, program staff, or immediate neighbors of the participants. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.12.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. )
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This section defines key terms used in the transitional housing misconduct chapter.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 1. General Provisions and Definitions [1954.10 - 1954.12] ( Article 1 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.12. The following definitions shall govern the construction of this chapter: (a) “Abuse” means intentionally or recklessly causing or attempting to cause bodily injury, or sexual assault or placing another person in reasonable apprehension of imminent serious bodily injury to himself, herself, or another, where the injured person is another participant, program operator’s staff, or a person residing within 100 feet of the program site. (b) “Homeless person” means an individual or family who, prior to participation in a transitional housing program, either lacked a fixed, regular, and adequate nighttime residence or had a primary nighttime residence, that was one of the following: (1) A supervised publicly or privately operated shelter designed to provide temporary living accommodations, including, but not limited to, welfare hotels, congregate shelters, and transitional housing for the mentally ill. (2) An institution that provides a temporary residence for individuals intended to be institutionalized. (3) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. (c) “Participant” means a homeless person under contract with a program operator to participate in a transitional housing program and to use a dwelling unit in the program site. For the purposes of naming a defendant under this part, or a person to be protected under this part, “participant” shall include a person living with a participant at the program site. The contract shall specifically include the transitional housing program rules and regulations, a statement of the program operator’s right of control over and access to the program unit occupied by the participant, and a restatement of the requirements and procedures of this chapter. (d) “Program misconduct” means any intentional violation of the transitional housing program rules and regulations which (1) substantially interferes with the orderly operation of the transitional housing program, and (2) relates to drunkenness on the program site, unlawful use or sale of controlled substances, theft, arson, or destruction of the property of the program operator, persons living within 100 feet of the program site, program employees, or other participants, or (3) relates to violence or threats of violence, and harassment of persons living within 100 feet of the program site, program employees, or of other participants. (e) “Program operator” means a governmental agency, or private nonprofit corporation receiving any portion of its transitional housing program funds from a governmental agency, which is operating a transitional housing program. “Program operator” also includes any other manager or operator hired by a governmental agency or nonprofit corporation to operate its transitional housing program. (f) “Program site” means the real property containing a dwelling unit, the use of which is granted to a participant, and other locations where program activities or services are carried out or provided, subject to the participant’s compliance with the transitional housing program rules and regulations. (g) “Transitional housing program” means any program which is designed to assist homeless persons in obtaining skills necessary for independent living in permanent housing and which has all of the following components: (1) Comprehensive social service programs which include regular individualized case management services and which may include alcohol and drug abuse counseling, self-improvement education, employment and training assistance services, and independent living skills development. (2) Use of a program unit as a temporary housing unit in a structured living environment which use is conditioned upon compliance with the transitional housing program rules and regulations. (3) A rule or regulation which specifies an occupancy period of not less than 30 days, but not more than 24 months. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.13.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. )
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A program operator may seek restraining orders and injunctions for abuse or misconduct, but there are notice, service, hearing, and timing requirements, and some requests are limited or barred.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.13. (a) The program operator may seek, on its own behalf or on behalf of other participants, project employees, or persons residing within 100 feet of the program site, a temporary restraining order and an injunction prohibiting abuse or program misconduct as provided in this chapter. A program operator may not seek a temporary restraining order, pursuant to this section, against a participant after the participant has been under contract with the program operator for at least six months or longer, except when an action is pending against the participant or a temporary restraining order is in effect and subject to further orders. Nothing in this section shall be construed to authorize a person residing within 100 feet of the program site to seek a temporary restraining order or injunction under this chapter. (b) Upon filing a petition for an injunction under this chapter, the program operator may obtain a temporary restraining order in accordance with the provisions of this section. No temporary restraining order shall be issued without notice to the opposite party, unless it shall appear from the facts shown by the affidavit that great or irreparable harm would result to the program operator, a program participant, or an individual residing within 100 feet of the program site before the matter can be heard on notice. The program operator or the program operator’s attorney shall state in an affidavit to the court (1) that within a reasonable time prior to the application for a temporary restraining order he or she informed the opposing party or his or her attorney at what time and where the application would be made, (2) that he or she in good faith attempted to so inform the opposing party and his or her attorney but was unable to so inform the opposing attorney or his or her party, specifying the efforts made to contact them, or (3) that for reasons specified he or she should not be required to inform the opposing party or his or her attorney. A temporary restraining order may be granted upon an affidavit which, to the satisfaction of the court, shows reasonable proof of program misconduct or abuse by the participant, and that great or irreparable harm would result. A temporary restraining order granted under this section shall remain in effect, at the court’s discretion, for a period not to exceed five days, unless otherwise modified, extended, or terminated by the court. (c) The matter shall be made returnable on an order requiring cause to be shown why the injunction should not be granted, not later than five days from the date of the order. When the matter comes up for hearing, the party who obtained the temporary restraining order shall be ready to proceed and shall have personally served upon the opposite party at least two days prior to the hearing, a copy of the petition, a copy of the temporary restraining order, if any, the notice of hearing, copies of all affidavits to be used in the application, and a copy of any points and authorities in support of the petition. If the party who obtained the temporary restraining order is not ready, or if he or she fails to serve a copy of his or her petition, affidavits, and points and authorities, as herein required, the court shall dissolve the temporary restraining order. The court may, upon the filing of an affidavit by the program operator or his or her attorney, that the participant could not be served on time, reissue any temporary restraining order previously issued pursuant to this section and dissolved by the court for failure to serve the participant. An order reissued under this section shall state on its face the new date of expiration of the order. No fees shall be charged for the reissuance of any order under this section. The participant shall be entitled to a continuance, provided that the request is made on or before the hearing date and the hearing shall be set for a date within 15 days of the application, unless the participant requests a later date. The court may extend, or modify and extend, any temporary restraining order until the date and time upon which the hearing is held. The participant may file a response which explains, excuses, justifies, or denies the alleged conduct. No fee shall be charged for the filing of a response. At the hearing, the judge shall receive any testimony or evidence that is relevant, and may make an independent inquiry. If the judge finds by clear and convincing evidence that program misconduct or abuse exists, an injunction shall issue prohibiting that conduct. An injunction issued pursuant to this section shall have a duration of not more than one year. At any time within the three months before the expiration of the injunction, the program operator may apply for renewal of the injunction by filing a new petition for an injunction under this section. (d) In addition to orders restraining abuse, the court may, upon clear and convincing evidence of abuse, issue an order excluding the participant from the program site, or restraining the participant from coming within 200 feet of the program site, upon an affidavit which, to the satisfaction of the court, shows clear and convincing evidence of abuse of a project employee, another participant, or a person who resides within 100 feet of the program site, by the participant and that great or irreparable injury would result to one of these individuals if the order is not issued. An order excluding the participant from the program site may be included in the temporary restraining order only in an emergency where it is necessary to protect another participant, a project employee, or an individual who lives within 100 feet of the project site from imminent serious bodily injury. (e) Nothing in this chapter shall preclude either party from representation by private counsel or from appearing on his or her own behalf. (f) The notice of hearing specified in subdivision (c) shall contain on its face the name and phone number of an office funded by the federal Legal Services Corporation which provides legal services to low-income persons in the county in which the action is filed. The notice shall indicate that this number may be called for legal advice concerning the filing of a response to the petition. (g) Nothing in this chapter shall preclude the program operator’s right to utilize other existing civil remedies. An order issued under this section shall not affect the rights of anyone not named in the order. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.14.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. )
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The clerk must send copies of certain restraining orders or injunctions to local law enforcement by the end of the business day; law enforcement agencies may share order-status information with responding officers; willful disobedience is a misdemeanor; and the court may exclude a participant from the program site for contempt.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.14. (a) The clerk shall transmit a copy of each temporary restraining order or injunction or modification or termination thereof, granted under this chapter, by the close of the business day on which the order was granted, to the law enforcement agencies having jurisdiction over the program site. Each law enforcement agency may make available information as to the existence and current status of these orders to law enforcement officers responding to the scene of reported abuse or program misconduct. (b) Any willful disobedience of any temporary restraining order or injunction granted under this section shall be a misdemeanor pursuant to Section 166 of the Penal Code. (c) If a participant is found in contempt of a court order issued pursuant to this section, the court may, in addition to any other punishment, modify the order to exclude the participant from the program site. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.15.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. )
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If a participant violates an order under Section 1954.13, the participant is treated as having failed to perform the agreement’s conditions.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.15. If a participant has violated an order issued under Section 1954.13, the participant shall be considered to have failed to perform the conditions of the agreement under which the property is held as provided in subsection 3 of Section 1161 of the Code of Civil Procedure, which conditions cannot afterward be performed. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.16.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. )
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The Judicial Council must issue forms and related instructions for the chapter’s procedures, and the petition and response forms must be simple and concise.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 2. Temporary Restraining Order and Injunction [1954.13 - 1954.16] ( Article 2 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.16. The Judicial Council shall promulgate forms and related instructions to implement the procedures required by this chapter. The petition and response forms shall be simple and concise. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)
1954.17.
## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 3. Recovery of Dwelling [1954.17 - 1954.18] ( Article 3 added by Stats. 2016, Ch. 714, Sec. 5. )
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If an exclusion order is issued after a hearing, the program operator may take possession of the participant’s dwelling unit without further notice.

## Civil Code - CIV ## DIVISION 3. OBLIGATIONS [1427 - 3273.91] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. ) ## PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273.91] ( Part 4 enacted 1872. ) ## TITLE 5. HIRING [1925 - 1997.270] ( Title 5 enacted 1872. ) ## CHAPTER 2.5. Transitional Housing Participant Misconduct [1954.10 - 1954.18] ( Chapter 2.5 added by Stats. 2016, Ch. 714, Sec. 5. ) ## ARTICLE 3. Recovery of Dwelling [1954.17 - 1954.18] ( Article 3 added by Stats. 2016, Ch. 714, Sec. 5. ) ## 1954.17. If, after hearing pursuant to this chapter, an order excluding the participant from the program site is issued, the program operator may, without further notice, take possession of the participant’s dwelling unit on the program site. The program operator shall have the same rights to the dwelling unit as if it had been recovered after abandonment in accordance with Section 1951.3 and without objection of the participant. If other participants, including the defendant participant’s family members, reside in the dwelling unit, the abandonment shall be deemed only to affect the rights of the individual or individuals against whom the order was issued. (Added by Stats. 2016, Ch. 714, Sec. 5. (SB 944) Effective January 1, 2017.)

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