Listing Agreements
A written contract between a property seller and a real estate broker, authorizing the broker to find a buyer to purchase the property on the seller's terms.
"The seller hires the broker to find a buyer who is ready, willing, and able to buy the property
Commission
(Brokerage fee)
"The standard form of payment for a real estate broker"
To be legally entitled to a commission, a listing broker must meet three requirements.
The broker must:
1) have a written listing agreement with the seller,
2) have been licensed at t
Brokerage fee
**See Commission
Earning a Commission
A seller is generally required to pay the listing broker a commission only if a ready, willing, and able buyer is found during the listing period.
A ready, willing, and able buyer is one who makes an offer that meets the seller's stated terms and who has
Ready, Willing, & Able Buyer
As a general rule, a listing agreement obligates the seller to pay the listing broker a commission only if a ready, willing, and able buyer is found during the listing period."
How do we measure whether or not a buyer is "ready and willing"? In the list
Acceptable Offer
A buyer is considered "ready and willing" if he makes an offer that meets the seller's stated terms.
In the listing agreement, the seller sets forth the terms on which she wants to sell the property: price, closing date, financing arrangements, etc.
If a
Able to Buy
A ready and willing buyer is considered "able" if he has the capacity to contract and the financial ability to complete the purchase.
The buyer must have enough cash to buy the property on the agreed terms, or else be eligible for the necessary financing
Commission Without Closing
Generally, once a ready, willing, and able buyer has been found, the broker has earned the commission, whether or not the sale is ever completed.
When failure to close is the seller's fault, the broker is still entitled to the commission (although the bro
Types of Listing Agreements
When a seller is required to pay a broker's commission also depends on the type of listing agreement they have.
The three basic types of listing agreements in current use are:
1. the open listing,
2. the exclusive agency listing, and
3. the exclusive righ
Open Listing
(Nonexclusive listing)
Unilateral contract
The seller agrees to pay the broker a commission if the broker finds a buyer, but the broker does not promise to put forth any effort to find a buyer.
A seller can give an open listing to more than one broker at
Procuring cause
The real estate agent who is primarily responsible for bringing about a sale; the one who actually negotiates an agreement with the ready, willing, and able buyer."
"The person who was primarily responsible for bringing about the agreement between the pa
Nonexclusive listing
**See Open Listing
Exclusive Agency Listing
Bilateral contract.
In exchange for the seller's promise to pay a commission, the broker promises to exercise due diligence and make a good faith effort to sell the property.
Under an exclusive agency listing, the seller must pay the broker's commission i
Exclusive Right to Sell Listing
MOST PROTECTION for the broker
Broker entitled to commission no matter who sells property
Most frequently used listing
Under an exclusive right to sell listing, the broker gets the commission if the property sells during the listing period.
This is true n
Elements of a Listing Agreement
A listing agreement must have all of the essential elements of a valid contract that were discussed in the previous chapter, including
-competent parties,
-offer and acceptance,
-consideration, and
-a lawful purpose
Also, under the statute of frauds, a l
Property Description
A purchase and sale agreement must include a property description that identifies the property with certainty.
A complete legal description is preferable
Although a complete legal description isn't strictly required for the listing agreement, one should b
Terms of Sale
A listing agreement should specify what the seller wants in the way of an offer.
This includes how much money the seller wants for the property (the listing price) and any other terms of sale that matter to the seller.
Any items that the seller wants to
Listing price
How much money the seller wants for the property
Broker's Authority
A listing agreement authorizes the broker to find a buyer for the property and accept good faith deposits on the seller's behalf.
The broker isn't authorized to accept an offer or transfer title to the seller's property.
"The listing agreement sets forth
Net listing
A net listing is a listing agreement in which the seller sets a net amount she is willing to accept for the property. If the sales price is more than that set amount, the broker is entitled to keep the excess.
Net listings are legal in California only if
Payment
A broker's commission is typically paid with a check, but if the seller and the broker agree, the commission payment can take the form of a
-new promissory note,
-an assignment of an existing note, or
-an assignment of funds from the buyer to the seller.
Seller-Paid Fee
(Commission Split)
Most common compensation arrangement for buyer's agents
Under this arrangement, the buyer's broker receives a share of the listing broker's commission
"At least in urban and suburban areas, most brokers belong to a multiple listing serv
Multiple listing service (MLS)
An organization of brokers who share information about their listings.
Selling broker
The broker who finds the buyer, or whose salesperson finds the buyer
Safety Clauses
(protection clause)
(protection period clause)
PROTECTS the BROKER from parties who conspire to deprive the broker of a commission
A safety clause entitles a listing broker to the commission if the seller sells the property during a specified period after
Protection clause
**See Safety Clauses
Protection period clause
**See Safety Clauses
Termination Date
Any listing agreement should have a termination date. California law requires a termination date in an exclusive listing agreement.
"A listing agreement should include a termination date: the date on which the listing will expire and the broker's authorit
Buyer Representation Agreements
To establish a buyer agency relationship, a buyer and a broker may enter into a written representation agreement.
The agreement should state the term of the agency, the characteristics and price of the desired property, conditions under which the fee will
Provisions in a Buyer Representation Agreement
General characteristics of the property the buyer wants, the acceptable price range, the broker's duties, and the broker's compensation.
The type of property that the buyer wants should be described in enough detail so that the contract accurately states
Broker's Compensation
A buyer's agent may be compensated with a retainer, a seller-paid fee or commission split, or a buyer-paid fee.
Accepting compensation from a seller does not create an agency relationship between a buyer's agent and the seller.
"A buyer representation agr
Buyer-paid fee
A buyer representation agreement may provide for a buyer-paid fee instead of a commission split.
The buyer-paid fee might be based on an hourly rate, in which case the broker is essentially a consultant.
Alternatively, the broker may charge a percentage
Retainer
Some brokers collect a retainer when they enter into a buyer representation agreement, to ensure that their services won't go entirely uncompensated.
A retainer is a sum of money paid up front, before services are provided.
A retainer is usually nonrefun
Purchase Agreements
(Deposit receipt)
(Purchase and sale agreement)
usually a conditional agreement
"A contract between a buyer and a seller of real property.
Also called a purchase and sale agreement, a contract of sale, or a deposit receipt."
"A purchase agreement is a wri
Deposit receipt
**See Purchase Agreements
Equitable title
Once both the buyer and the seller have signed the purchase agreement, the buyer is considered to have equitable title to the property.
This essentially means that, as a matter of fairness, a court would recognize that the buyer has an interest in the pr
Requirements for a Valid Purchase Agreement
The statute of frauds requires an agreement to buy and sell real property to be in writing and signed by both the buyer(s) and the seller(s).
The basic requirements for a valid purchase agreement are fairly simple.
The contract must:
1. identify the part
Provisions in a Purchase Agreement
In addition to provisions identifying the parties, describing the property, and establishing the terms of sale, a purchase agreement usually includes contingency clauses, warranties, disclosures, and provisions concerning title, escrow, closing, deadline
Identification of the Parties
The buyers and the sellers must be properly identified in the agreement.
Everyone who has an ownership interest in the property must sign the contract as sellers, and all parties (sellers and buyers) must have the capacity to enter into a contract.
If th
Contingency Clauses
A contingency clause makes a transaction dependent on the fulfillment of a specified condition. If the condition is not fulfilled, the transaction will terminate without liability for either party.
"A contract clause which provides that unless some specif
Condition of the Property
A purchase agreement may include a variety of provisions concerning the condition of the property.
The seller may warrant the condition of certain elements (such as the roof, plumbing, or appliances) in the purchase agreement, or the agreement may state
Disclosures
In California, a residential purchase agreement often has a provision concerning the transfer disclosure statement and other specific disclosures the seller may be required by law to provide.
And certain required disclosures must be included in the contr
Conveyance and Title
The purchase agreement should specify the type of deed that will be used to convey title to the buyer (ordinarily a grant deed).
The contract usually also states that the title is free from undisclosed liens and encumbrances, and that the seller will pay
Escrow and Closing
It's a good idea for a purchase agreement to include the arrangements for escrow.
At the very least, the agreement should set the closing date for the transaction.
Both parties must agree to the identity of the escrow agent; one party can't choose the es
Possession
Possession of the property is usually transferred to the buyer on the closing date, but other arrangements can be made in the purchase agreement.
If possession will be transferred either before or after closing, the parties should execute a separate rent
Interim occupancy agreement
If possession will be transferred either before or after closing, the parties should execute a separate rental agreement
Uniform Vendor and Purchaser Risk Act
Law that determines who suffers the loss when property subject to a purchase agreement is damaged or destroyed before closing.
Under the terms of the act, until either possession or legal title is transferred to the buyer, the risk of loss is the seller'
Risk clause
The parties may choose to apportion the risk of loss differently by including a risk clause in the purchase agreement.
Time is of the Essence
Almost every purchase and sale agreement has a 'time is of the essence' clause.
This means that failure to meet a deadline may be treated as a breach of contract.
"Nearly all purchase agreements contain a "time is of the essence" clause.
Thus, failure to
Good Faith Deposit
The purchase agreement should not only acknowledge receipt of the buyer's good faith deposit, it should also explain the circumstances in which the deposit will be refunded to the buyer or forfeited to the seller.
In many cases, the deposit is treated as
License Identification Number
Whenever a purchase agreement is used in a transaction that a real estate licensee is involved in as an agent, his license identification number must be disclosed in the purchase agreement.
If he has a mortgage loan originator endorsement, his identifica
Amendments
(Rider)
"After the buyer and seller have signed the purchase agreement, the terms of the contract can only be modified in writing.
All parties who signed the original agreement must sign the amendment, or it will be unenforceable.
An amendment may also be
Land Contracts
A land contract is a financing agreement between a buyer (vendee) and a seller (vendor).
The vendee takes possession of the property, but pays for it in installments.
The vendor delivers the deed only when the vendee makes the final contract payment.
"A c
Vendor
The seller
Has legal title
Vendee
The buyer
Has equitable title
Has the right to record the contract. This protects her equitable title by providing constructive notice of it.
Rights and Responsibilities of Vendor and Vendee
While the vendee is paying off the contract, the vendor has the right to transfer or encumber the property without the vendee's consent.
However, if legal title is transferred, the new owner takes title subject to the rights of the vendee under the land
Remedies for Default
If the vendee pays the purchase price in full, but the vendor fails to transfer legal title to the property, the vendee can sue for specific performance of the contract.
If the vendee defaults (for example, by failing to make the installment payments), t
Use of Land Contracts
A land contract is used as an alternative to a mortgage or deed of trust in a seller-financed real estate transaction.
The seller extends credit to the buyer and holds legal title to the property as security for the repayment of the debt, instead of havi
Rider
**See Amendments
Option Agreements
(Contract to keep an offer open)
"An agreement that gives one party the right to buy or lease the other party's property at a set price for a certain period of time."
"An option agreement is essentially a contract to make a contract.
It is sometimes calle
Contract to keep an offer open
**See Option Agreements
Optionor
the one who grants the option right
"The optionor is bound to keep the offer open for the period specified in the option agreement.
He isn't allowed to sell or lease the property to anyone other than the optionee until the option expires.
Optionee
the one who is granted the option right
"If the optionee decides to exercise the option (to buy or lease the property on the stated terms), she must give written notice of acceptance to the optionor.
If the optionee fails to exercise the option within the
Requirements for a Valid Option
Because an option is a contract, it must have all of the elements required for a valid contract, including consideration.
The consideration may be a nominal amount�there's no set minimum.
But some consideration must, in fact, pass from the optionee to th
Option Rights
The executed option gives the optionee a contract right, but it doesn't create an interest in real property.
An option is not a lien, and also cannot be used as security for a mortgage or a deed of trust.
If the optionor dies during the option period, th
Recording an Option
An option agreement may be recorded to give third parties constructive notice of the option.
In that case, if the optionee exercises the option, his interest in the property will relate back to the date the option was recorded, taking priority over the r
Right of First Refusal
An option shouldn't be confused with a right of first refusal, which gives a person the first opportunity to purchase or lease real property if and when it becomes available.
For instance, a lease might give the tenant a right of first refusal to purchas
Leases
(Rental agreement)
"A contract in which one party (the tenant or lessee) pays the other (the landlord or lessor) rent in exchange for the possession of real estate.
"A lease is both a method of conveyance and a contract.
A lease conveys a less-than-freeho
Rental agreement
**See Leases
Leasehold
A lease conveys a less-than-freehold estate
Landlord
(Lessor)
The property owner
Tenant
(Lessee)
A person who occupies land or property rented from a landlord.
Demise
The conveyance of an interest in real property through the terms of a lease.
Lessor
**See Landlord
Lessee
**See Tenant
Privity
The Landlord and tenant have a mutual interest in one property.
Requirements for a Valid Lease
As with any contract, the parties to a lease must be competent and must mutually consent to its terms.
Consideration (typically the rental payment) is also required.
The amount of the rent and when it is due should be specified.
Under the statute of frau
Rights and Responsibilities of Landlord and Tenant
The rights and responsibilities of the parties during a tenancy are determined partly by the terms of their lease agreement and partly by the body of legal rules known as landlord-tenant law.
The rules we'll discuss in this chapter are from state law.
No
Use of the Premises
A tenant's use of the leased property is restricted by law to legal uses.
Many landlords place additional restrictions on the use of the property�for example, restricting commercial space to retail use.
The restricting language in the lease must be clear
Payment of Rent
Most leases require the rent to be paid at the beginning of the rental period.
In the absence of any rental payment provision, however, the rent is due at the end of the rental period.
However, if the lease doesn't specify when the rent is to be paid, it
Security Deposit
California law defines a security deposit as any payment, fee, deposit, or charge (including an advance payment of rent) paid by the tenant to secure the performance of the lease agreement.
Such a payment is considered a security deposit no matter what t
Entry and Inspection
Residential landlords may enter the leased property to perform repairs, provide other services, or show the unit to prospective buyers or tenants.
Except in an emergency, the landlord must give the tenant 24 hours' notice before entering.
"Most leases giv
Repairs and Improvements
A tenant isn't ordinarily required to make any repairs to the leased property.
However, the tenant must return the property to the landlord in the same condition as it was in at the beginning of the lease term, with allowances for normal wear and tear.
T
Renewal
A lease that creates a term tenancy may contain a provision that gives the tenant an option to renew the lease at the end of the term.
Most renewal options require the tenant to give notice of his intention to exercise the option on or before a specific d
Contact Information
A residential lease must contain the name, phone number, and address of: the owner (or the owner's agent); the property manager (if there is one); and the party receiving the tenant's payments.
Alternatively, this information may be conspicuously posted a
Transferring Leased Property
A landlord can sell the leased property during the term of the lease, but the buyer takes title subject to the lease.
This means the buyer must honor the lease for the remainder of its term.
(There's an exception if the property is sold involuntarily.
As
Assignment
When a lease is assigned, the original tenant transfers her entire remaining leasehold estate to another person.
"In an assignment, the tenant transfers the entire remainder of her leasehold estate."
"The assignee becomes liable for paying the rent to the
Sublease
In a sublease, a tenant grants someone else the right to possess the leased property for only part of the remainder of the lease term, or the right to possess only part of the leased property.
"In a sublease, the original tenant transfers only part of his
Novation
A novation is the substitution of a new lease obligation for an old one, or a new party for the original party.
"A novation occurs when a new contract is created and the old contract is extinguished.
When an existing lease is replaced either with a new le
Termination of a Lease
A lease may be terminated by expiration; notice of termination; surrender; the landlord's breach of an implied promise; the tenant's failure to pay rent or unauthorized use of the premises; foreclosure; destruction of the premises; or condemnation.
Expiration
A lease for a specified term (a term tenancy) expires automatically at the end of the term.
No notice of termination is required.
Notice of Termination
With a periodic tenancy, either the landlord or the tenant may terminate the lease at any point by giving the other party proper notice of termination.
The notice must be in writing.
The required notice period is usually the same as the lease period.
Tha
Surrender
Surrender occurs when the landlord and tenant mutually agree to terminate a lease before the scheduled end of the term.
"A landlord and tenant may mutually agree to terminate a lease at any time. This is called surrender.
Breach of Implied Covenant of Quiet Enjoyment
In every lease there is an implied covenant of quiet enjoyment.
This is the landlord's implied promise that she will refrain from unlawfully interfering with the tenant's possession of the leased property, and that no third party will lawfully claim a ri
Actual eviction
Actual eviction involves the physical expulsion of a tenant from a property (for example, by changing the lock on an apartment door).
"Occurs when the landlord actually expels the tenant from the property
Constructive eviction
Constructive eviction occurs when a landlord allows a substantial interference with a tenant's possession of the leased property.
This is a breach of the implied covenant of quiet enjoyment.
"Occurs when the landlord causes or permits a substantial interf
Breach of Implied Warranty of Habitability
(Implied warranty of habitability)
"In all residential leases, the landlord gives an implied guarantee that the premises meet all building and housing code regulations that affect health and safety on the premises.
This is called the implied warranty of h
Implied warranty of habitability
**See Breach of Implied Warranty of Habitability
Failure to Pay Rent
The tenant has a duty to pay rent as required by the terms of the lease.
However, if the tenant fails to pay the rent, the leasehold estate is not automatically terminated.
The landlord is required by statute to give notice of nonpayment to the tenant.
I
Unlawful detainer
An unlawful detainer action is a lawsuit filed by a landlord to evict a tenant who is not paying the rent or is otherwise defaulting on the lease.
"A court action brought by a landlord to evict a tenant."
"If the tenant still fails to pay after receiving
Writ of possession
A writ of possession is a court order that requires a defaulting tenant to move out.
"If the court finds the tenant in default, it may issue a writ of possession, which requires the tenant to move out peaceably or else be forcibly removed by the sheriff.
Illegal or Unauthorized Use
If the tenant uses the premises in an illegal manner (in violation of the zoning code, for example), the landlord may demand that the tenant cease the illegal activity or leave the premises.
Also, if the tenant uses the premises in a manner not authorize
Foreclosure
If a lien against the leased property is foreclosed on because the landlord has defaulted on a loan or other obligation, the foreclosure may terminate the lease.
As a general rule, a foreclosure sale purchaser has to honor an existing lease only if it ha
Destruction of the Premises
Unless there is a provision to the contrary, if the lease is for the use of the land and any buildings or other improvements on the land, or for the use of an entire building, the destruction of the building(s) won't necessarily terminate the lease.
The
Condemnation
Condemnation of property can also result in premature termination of a lease.
Types of Leases
There are 5 major types of leases:
1. the fixed lease,
2. the graduated lease,
3. the percentage lease,
4. the net lease, and
5. the ground lease.
Sometimes called a "flat," "straight," or "gross" lease, a fixed lease provides for a fixed rental amount.
Net lease
A net lease requires the tenant to pay the landlord a fixed rent, plus some or all of the operating expenses.
Graduated lease
(Step-up Lease)
"A graduated lease is similar to a fixed lease, but it provides for periodic increases in the rent, usually set at specific future dates and often based on the Consumer Price Index or a similar cost-of-living index.
These increases are mad
Step-Up Lease
**See Graduated Lease
Escalation clause
In a graduated lease, an escalation clause provides for a rent increase at certain intervals. The clause may call for a set increase, or an increase tied to a cost-of-living index.
Provision for the automatic increase of the rent at periodic intervals
Percentage lease
Common in the commercial setting, especially for properties located in shopping centers.
The rent is based on a percentage of the gross or net income from the tenant's business.
Typically, the lease provides for a minimum rent plus a percentage of the te
Ground lease
When a tenant leases land and agrees to construct a building on that land, it is called a ground lease.
Ground leases are common in metropolitan areas; they are usually long-term, in order to make the construction of buildings worth the tenant's while.
Listing Agreement
An agreement between a property owner and a real estate broker, in which the owner hires the broker to find a buyer who is ready, willing, and able to buy the owner's property on the owner's terms.
1. The type of listing that provides for payment of a commission to the listing broker regardless of who sells the property is a/an:
A. open listing
B. exclusive agency listing
C. exclusive right to sell listing
D. net listing
C. exclusive right to sell listing
2. The type of listing that provides for the payment of a commission to the listing broker only if she was the procuring cause of the sale is a/an:
A. open listing
B. exclusive agency listing
C. exclusive right to sell listing
D.net listing
A. open listing
3. The type of listing that provides for the payment of a commission that consists of any proceeds from the sale over a specified amount is a/an:
A. open listing
B. exclusive agency listing
C. exclusive right to sell listing
D. net listing
D. net listing
4.The listing broker has negotiated an offer from a ready, willing, and able buyer that matches the seller's terms of sale set forth in the listing agreement. Which of the following is true?
A. The seller is required to accept the offer and pay the listin
C. The listing broker has earned the commission, whether or not the seller accepts the offer
5. A safety clause provides that:
A. the broker is entitled to a commission whether or not he is the procuring cause
B. the buyer must share the cost of the broker's commission
C. the seller warrants the safety of the premises
D. the broker is entitled to
D. the broker is entitled to a commission if the property is sold after the listing expires to someone the broker previously showed the property to
6. All of the following are required for a buyer representation agreement except:
A. the buyer's signature
B. a legal description of the property
C. consideration
D. a termination date
B. a legal description of the property
7. A purchase agreement serves as:
A. the buyer's receipt for the good faith deposit
B. the buyer's offer to purchase
C. a binding contract between the buyer and the seller
D. All of the above
D. All of the above
8. A purchase agreement should state:
A. only the purchase price, leaving the other terms to be worked out in the final contract
B. the listing price as well as the purchase price
C. the total purchase price, the method of payment, and the basic financing
C. the total purchase price, the method of payment, and the basic financing terms
9. A provision in the purchase agreement states that it won't be a binding contract unless the buyer can obtain financing. This provision is called:
A. a contingency clause
B. a defeasibility clause
C. a bump clause
D. an escrow clause
A. a contingency clause
10. Under a land contract, the vendee initially gets:
A. possession but not title
B. title but not possession
C. possession and title, but not the right to transfer ownership
D. the right to novate the contract without the vendor's permission
A. possession but not title
11. An option:
A. can be assigned, unless otherwise agreed
B. is a type of lien
C. creates an interest in real property
D. should not be recorded
A. can be assigned, unless otherwise agreed
12. To be binding, a lease must be signed by the:
A. broker
B. beneficiary
C. landlord
D. tenant
C. landlord
13. When leased property is sold voluntarily, the lease:
A. automatically terminates
B. is breached by constructive eviction
C. must be renegotiated by the tenant and the new owner
D. is binding on the new owner
D. is binding on the new owner
14. An oral lease may be valid if it is for:
A. one year or less
B. two years or less
C. three years or less
D. four years or less
A. one year or less
15. When a tenant assigns a lease, the assignee (the new tenant) becomes:
A. secondarily responsible for payment of the rent
B. the subtenant
C. primarily responsible for payment of the rent
D. None of the above
C. primarily responsible for payment of the rent
Exclusive listing
An exclusive agency or exclusive right to sell listing can only be given to one broker at a time.
To claim a commission under an exclusive listing, the broker may be required to show that she exercised due diligence in trying to find a buyer for the prope
Commission rate
The commission rate cannot be pre-printed on the listing agreement form, because it must be negotiable for each transaction.
A listing form for residential property must state in bold type that the commission is negotiable.
Commission Split
**See Seller-Paid Fee
Signatures
A purchase and sale agreement must be signed by everyone who has an ownership interest in the property, and by all buyers.
The spouses of any married parties should also sign. Like the original contract, any amendments must be in writing and signed.
Basic provisions
A purchase and sale agreement sets forth the purchase price and other terms of sale, the closing date, the type of deed that will be used to transfer title, and when the buyer will take possession of the property.
Receipt for deposit
The contract form also serves as a receipt for the buyer's good faith deposit.
The receipt provision should state whether the deposit is in the form of cash, a check, or a note.
Liquidated damages
There is usually a liquidated damages provision in a purchase and sale agreement, allowing the seller to keep the good faith deposit if the buyer defaults.
Under California law, the seller of an owner-occupied home can keep no more than 3% of the sales pr
Brokerage fee provision
In signing a purchase and sale agreement form, a seller is usually also agreeing to compensate the real estate broker for services rendered.
Taxes and insurance
In addition to making the required payments to the vendor, the vendee is usually required to pay the property taxes and insurance.
Legal and equitable title
Under a land contract, the vendor retains legal title to the property during the contract payment period.
The vendee has equitable title, which includes the right to possess and enjoy the property.
Termination of land contract
If a vendee defaults on a land contract, the vendor may terminate the contract.
However, the vendor must refund any payments previously made, less the cost of fixing any damage and the property's fair market rental value for the period of possession.
The
Option
An option to purchase gives the optionee the right to buy the property for a specified price during the option period, without creating any obligation to do so.
If the optionee exercises the option before it expires, the optionor is required to convey the
Writing requirement
Any lease for a term of more than one year must be in writing and signed by the landlord.
Tenant Signature
Typically, a lease does not have to be signed by the tenant, even when it must be in writing. The tenant's possession of the property and payment of rent act as acceptance of the lease.
Use of rental property
The tenant's use of the rental property must be legal and comply with local zoning and private restrictions.
It must also comply with any restrictions written into the terms of the lease.
Security deposits
The landlord can use a security deposit to cover any unpaid rent, to pay for cleaning, or to repair any damage.
A residential tenant is entitled to a refund of any portion of the security deposit that is not used for those purposes within three weeks afte