Legal Question in Landlord & Tenant Law in California
[California] The 3 day notice I got served states that "Your late charges are deducted from the money you submitted." The late charge in the lease agreement is set at the usurious rate of $25/day late, which amounts to an annual interest rate of 560%. Also, it is not clear what "the money you submitted" means. Does it refer to the security deposit or the rent I paid last month?
Does this make the notice defective?
4 Answers from Attorneys
Late charges are not just for the time value of the money, also known as itnterest, so they are not subject to usery laws.
If you got the 3 day notice after paying rent late, it's pretty clear that it means from rent you paid, not your deposit.
If you have not paid all the rent and late fees due as of the date of the notice, it is quite valid (absent some other defect in form or delivery you haven't mentioned).
Late fees can not be included on a 3 day notice. Contact me directly.
Attorney Ken Carlson, who runs caltenantlaw.com , is of the opinion that "late fee" clauses in residential lease agreements are illegal, and unenforceable in court, pursuant to Cal. Civil Code � 1671.
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