Tighter restrictions implemented to stop unlicensed advertisers and protect consumers in PRLS transactions. PRLS license fees increase.
BRE citations for unlicensed advertisers
Business and Professions Code §§149
Amended by S.B. 269
Effective date: January 1, 2014
The Bureau of Real Estate (BRE) now has the authority to issue a citation ordering an unlicensed individual who runs an advertisement in a telephone directory offering to perform services requiring a license to cease the unlawful advertising. The BRE’s citation compels the company providing telephone service to the unlicensed individual to cancel telephone services.
The BRE Commissioner may cite unlicensed prepaid rental listing service providers
Business and Professions Code §§10080.9
Amended by S.B. 269
Effective date: January 1, 2014
The Real Estate Commissioner may order an individual who performs prepaid rental listing services without a prepaid rental listing services (PRLS) license or BRE broker license to cease activities. The Real Estate Commissioner may also assess a fine of up to $2,500 per violation.
PRLS license application fees increase
Business and Professions Code §10167.3
Amended by S.B. 269
Effective date: January 1, 2014
The application fee for a PRLS license has been increased from $100 to $125 for the first location and from $25 to $50 for each additional location.
Changes to the PRLS agreement
Business and Professions Code §§10167.9, 10167.95
Amended by S.B. 269
Effective date: January 1, 2014
An agreement to provide prepaid rental listing services is to include the PRLS licensee’s or BRE broker’s license number.
In addition to the agreement to provide prepaid rental listing services, the licensee is to provide the prospective tenant with the following notice in no smaller than 12-point type:
YOU MAY BE ENTITLED TO A REFUND IF YOU DO NOT RECEIVE THE SERVICES YOU HAVE BEEN PROMISED. COMPLETE TERMS AND CONDITIONS GOVERNING THE REFUND TO WHICY YOU MAY BE ENTITLED ARE CONTAINED IN YOUR CNTRACT. THE FOLLOWING IS A SIMPLIFIED SUMMARY OF SOME OF THE RIGHTS DESCRIBED IN YOUR CONTRACT:
If (name of licensee) does not provide you with at least three available rental properties meeting the specifications of your contract within five days after you pay the fee charged by (name of licensee) during the term of your contract, you are entitled to a refund of your fee, minus a service charge, which may not exceed ____ dollars ($____). To obtain this refund, you must provide (name of licensee) with written documentation or a signed statement that you obtained a rental without the assistance of (name of licensee) or that you did not move. This documentation or signed statement must be provided to (name of licensee) with a written request for refund, within 10 days following the expiration of your contract.
If (name of licensee) fails to refund your money, as required by your contract, you may sue (name of licensee) in a small claims court. The court may award you the refund you failed to receive, plus additional damages, up to$1,000.
If you wish to file a complaint about (name of licensee) or if you cannot collect on a court award, you should contact the Bureau of Real Estate at 1–877–373–4542 or www.bre.ca.gov.
PRLS licensees now subject to Consumer Recovery Account rules
Business and Professions Code §§10470, 10471, 10475
Amended by S.B. 269
Effective date: January 1, 2014
If the Consumer Recovery Account is less than $200,000 on June 30 of any year, PRLS licensees renewing their licenses within two years of the shortage are required to add an additional $1 to their renewal fees.
Consumers may now apply to recover settlement amounts or money judgments against a PRLS licensee from the Consumer Recovery Account. If Consumer Recovery Account funds are paid to a consumer to satisfy settlements or judgments against a PRLS licensee, that licensee’s PRLS license is automatically suspended.
Reinstatement of the PRLS license is granted when the licensee repays the amounts paid from the Consumer Recovery Account in full, plus interest.
