Practice and Disclosures, 25% of the examination
Security deposit
Money held to secure a residential tenant's obligations, subject to California limits on amount, deductions, documentation, and return.
California's rule effective July 1, 2024 generally caps residential security at one month's rent, furnished or unfurnished; security collected or demanded before that date is excluded from that subdivision. The small-landlord exception requires a qualifying natural person or qualifying LLC owning no more than two rental properties with no more than four units total, and does not permit the higher limit for a service member. Deductions must have a lawful basis. The landlord generally has 21 calendar days after the tenant vacates to return the balance and provide the required itemization and supporting materials, including photographs when required.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
A landlord does not qualify for the small-landlord exception. Under the rule effective July 1, 2024, what is the maximum security deposit for an unfurnished residential unit?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.