This section defines key terms for businesses that provide prepaid rental listing services. A prepaid rental listing service is when a company gives potential renters lists of rental properties for an upfront fee, but without directly helping to negotiate rentals. It does not cover services that help find roommates based on personal preferences. A 'licensee' is someone allowed to run this type of service. 'Location' refers to where the business operates, aside from a main real estate office. A 'designated agent' is in charge of the service at a specific place. The 'fee' is what renters pay to get rental listings, and a 'service charge' is part of that fee kept by the licensee if renters find a place outside the company's listings.

This law section simply states that the rules in this article do not apply to newspapers that are widely available to the public.

If you want to run a prepaid rental listing service in California, you need to have a specific license or be a licensed real estate broker. This law covers only the listings of places to rent. Other products or services sold by the rental listing service are not covered as long as customers don't have to buy them to get the rental listings and they aren't bundled in the same deal. The law also makes it clear that prices for other goods or services need to be fair compared to what’s standard in the area. If someone thinks the prices aren't fair, it’s up to the government to prove that the prices are too high compared to similar items in the area.

This section requires a separate application for each location operated by prepaid rental listing services, unless the operator is a real estate broker. Applicants must use official forms and pay a fee that varies by location. Real estate brokers can offer these services at their licensed office, provided the business is directly supervised by the broker or a licensed real estate salesperson. Fees from applications are partially credited to the Consumer Recovery Account, which helps protect consumers.

Before giving a license to run a prepaid rental listing service, the commissioner wants to make sure that everyone involved is honest and truthful. This includes applicants, their main agents, company leaders, and anyone who owns a significant part of the business. To check this, the commissioner can hold a hearing and may deny a license if they aren't satisfied with the honesty of these people. Fingerprints of the main people involved are also required to verify their integrity.

A business operating under a specific license must be supervised by either the licensee or a designated agent who is only responsible for that location. If the designated agent leaves the position permanently, the business has five days to inform the department in writing. If the business doesn't name a new agent within 60 days, its license will expire automatically. However, during those 60 days, an existing agent can temporarily oversee multiple locations.

If someone from outside California applies for a prepaid rental listing service license, they have to agree that if they're sued in California and can't be personally reached, legal documents can be given to the Secretary of State for them. This approach follows similar rules in another law about serving documents to the Secretary of State.

If you have a license under this section, you need to have a bond of $10,000 per location. This can be a corporate bond or a cash deposit. If you choose a cash deposit, it can earn interest that you'll receive, but the deposit has to be assigned to the commissioner. If someone successfully sues you and doesn't get paid, the commissioner can use your bond to pay them.

This law says that certain prepaid rental listing services don't have to follow the rules in Section 10167.7. These exceptions include services run by someone who doesn't have to pay federal or state income taxes, government agencies, or a real estate broker with a license who is running such a service.

If you're a real estate licensee offering prepaid rental listing services, you need to provide a prospective tenant with a written contract before accepting any fees. This contract must include your contact information, details of the service, property preferences, and refund rights. Contracts can't last more than 90 days without renewal. Keep a record of these contracts for three years, either in paper or digital form, and protect tenant privacy when discarding them. You also need to file your contract forms with the department for approval. Contracts signed electronically are valid, and upon request, you have to send a paper copy to the tenant within five days.

If a person pays a fee to a licensee (like a real estate service), they should get at least three appropriate rental options within five days or a full refund if they don’t find a rental through that service. If they find a rental independently or don’t rent at all, they can get a refund beyond a $50 service charge if they ask for it within 10 days after the contract ends. They need to show proof, like a lease, or fill out a form if they lack documentation. Any delay or refusal to refund in bad faith can result in the licensee owing damages, and this doesn’t cover people looking for rentals not for personal use.

This law prohibits real estate licensees and their employees from making false or misleading statements in ads about services to potential renters. It also bars referring properties that don't exist, aren't available, or have been falsely advertised. The property listing must be verified as available within the last four days before being shared, with a brief allowance of up to seven days if efforts were made to confirm available status. Lastly, licensees must get permission to list properties from the rightful owner or manager.

This law allows the commissioner to suspend, deny, or revoke a business license if the licensee or their staff violates the law or is convicted of a crime that affects their qualifications. This applies particularly to those in charge of prepaid rental listing services. The commissioner must hold a hearing to decide if these actions are necessary.

This law states that a license for a prepaid rental listing service is valid for two years. To keep the license active, the holder must apply and pay for a renewal before the original license expires. Doing so allows the licensee to continue operating at all the places that were covered by the original license.

If someone is doing or might start doing something that breaks a rule from this article, the local court can be asked by officials like the commissioner, attorney general, district attorney, or city attorney to stop these actions. A court order can be issued to prevent these violations, and no special financial guarantee is needed from the person or entity filing the complaint.

If someone deliberately breaks any rule in this article, like an officer, director, or employee of a corporation, they can be charged with a misdemeanor, which is a criminal offense.

This law states that if you have a specific license under this article but you're not doing real estate activities that need a separate license, you still have to follow certain rules. These rules come from other specified sections of the law meant for real estate business conduct.

This law ensures that those who deal with prepaid rental listing services follow the same licensing rules as real estate agents. It means that the rules and standards for getting and maintaining a license are consistent across these professions.

Before taking any money, a licensee must inform prospective tenants about their right to a refund if promised services aren't delivered. If the licensee doesn't provide at least three rental options within five days of payment, the tenant can request a full refund within 15 days. If the tenant doesn't secure a rental via the licensee, they're eligible for a refund minus a small fee, by proving they found a place elsewhere. Requests for this refund should be submitted within 10 days after the contract ends. If the licensee refuses the refund, tenants can take them to small claims court for the amount owed plus extra damages. Complaints can be directed to the Department of Real Estate.