We Represent California Landlords Against Negligent Agents
A single unchecked box in a lease can turn an exempt single-family rental into a rent-controlled property. If a real estate agent prepared your lease and failed to include the required exemption notice under the Tenant Protection Act (AB 1482), the agent — and the supervising broker — may be liable for your losses. Our Beverly Hills firm represents landlords throughout Los Angeles and Southern California in these claims.
The Problem: The Exemption Notice Is Mandatory
Single-family homes and condominiums can be exempt from AB 1482’s rent cap and just-cause eviction rules — but only if the lease contains the specific written exemption notice required by Civil Code sections 1946.2(e)(8)(B) and 1947.12(d)(5). For tenancies beginning after July 1, 2020, that language must appear in the rental agreement itself.
Standard California Association of Realtors lease forms include this notice with a checkbox. When an agent prepares the lease and fails to check the box or attach the addendum, the consequences fall entirely on the landlord:
- You cannot terminate the tenancy without just cause, even month to month
- Annual rent increases are capped
- No-fault terminations may require relocation payments
- The property may be worth less to buyers who want it delivered vacant
Who Is Responsible
An agent you hire to lease your property is your fiduciary. California law requires the agent to exercise the skill of a reasonably competent licensee, learn the facts material to your decision, and advise you of the ramifications — including the loss of an exemption the property qualified for. Depending on the facts, claims may include:
- Professional negligence — failing to competently complete the lease the agent undertook to prepare
- Breach of fiduciary duty — failing to disclose material information affecting your rights as owner
- Breach of contract — violating the listing or leasing agreement
The supervising broker is typically responsible for the salesperson’s errors and carries errors-and-omissions insurance, which is often the real source of recovery.
How We Handle These Cases
- Lease and file review. We examine the lease form, addenda, and listing agreement to confirm the notice was omitted and identify who prepared the documents.
- Exemption analysis. We verify the property actually qualified for the exemption, including ownership-structure requirements and any local rent control ordinance.
- Damage mitigation. Where possible, we work to cure the defect going forward — often at lease renewal — to limit ongoing harm.
- Damages assessment. We quantify losses: capped rent, blocked terminations, relocation exposure, and diminished property value.
- Demand and litigation. We pursue the agent and broker through E&O insurance demands, and file suit when necessary.
Act Quickly — Deadlines Apply
Negligence claims against real estate licensees can be barred as soon as two years after the error. If you recently discovered a missing AB 1482 notice in a lease an agent prepared, do not wait.
We represent landlords in agent negligence, unlawful detainer, and rent control matters throughout Los Angeles and Southern California.
Contact the Law Office of Aaron Kohanim today to schedule a consultation. You can call us at (310) 861-7506. If you prefer to send a quick message, visit our Contact Us page.
The response above is not intended as legal advice. This response does not create an attorney-client relationship. Legal questions can only be fully answered through consultation with an attorney to whom you give full and accurate details. It is highly recommended that you seek advice from an attorney by setting up a confidential meeting. All who read this answer should not rely on the answer to govern their conduct.