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California Prepaid Rental Listing Service (PRLS) ($10,000) Bond
A registration to operate as a Prepaid Rental Listing Service (PRLS) is necessary in order to engage in the business of providing prospective renters with profiles of residential real property that is available for leasing for a charge. This contract does not include the option to participate in the negotiation of the actual leasing of the property.
In order to obtain this license, you are required to submit to the California Department of Real Estate Licensing a Prepaid Rental Listings Service Bond in the amount of $10,000.00. This bond must be lodged with the department.
This bond has been created with the intention of compensating a judgment creditor who has not been paid in the event that a certified prepaid listing service is unable to fulfill the following obligations:
- If the licensee fails to provide the prospective renter with at least three renting properties within five days of the contract being signed, the prospective tenant is entitled to a reimbursement. This provision comes into effect if the licensee fails to comply with the terms of the agreement.
- If the prospective renter finds a rental through means other than the services provided by the licensor during the period of the contract or does not find a rental at all, the prospective tenant is entitled to a refund of any price paid that is in addition to the $50 service charge.
Within ten days of obtaining a request for a reimbursement, the prospective tenant’s service charge payment of fifty dollars must be refunded to them.
Along with the other prerequisites for the licensure, the surety bond has to be handed in to the Bureau of Real Estate in the state of California. This is done in accordance with the provisions of Section 10167.7 of the Business and Professions Code of California.
Qualifications/Requirements
According to the definition provided by the California Department of Real Estate, a Prepaid Rental Listing Service (PRLS) is a business that supplies prospective tenants with listings of residential real property for tenancy while collecting a fee at the same time or in advance of when the listings are supplied.
This definition applies to businesses that provide prospective tenants with listings of residential real property for tenancy. It is not included in the scope of this exercise to engage in the process of negotiating the leasing of property. A valid PRLS certificate is necessary in order to carry out operations in this capacity.
The following items are required to be presented to the California Department of Real Estate in order to receive this license:
- A $245 registration charge
- A surety bond from the California Prepaid Rental Listing Service in the amount of $10,000 for each location it serves
- An individual license registration or an organization license application
- Evidence of identification using a live scan
The Process of Getting a California Prepaid Rental Listing Service Bond
- As soon as a surety company is in possession of your registration, they will start processing it right away. In the event that they require additional information from you or if there are any documents that you are required to present as part of the prequalification procedure, they will get in touch with you. During the preliminary certification stage, they will look at the following criteria:
- Your past record of success in business or on the work
- Your overall credit rating
- Your capacity in terms of finances2. After the indemnification agreement has been completed by both parties, your security bond will be provided and delivered to you.
Bond Amount
This bond is a formal guarantee made by the Principal (the prepaid renting listing service) and the Surety (the surety bond business) to return the amounts mandated by law to the prospective renter. The Principal is the company that provides the prepaid rental listing service. That obligation to deliver on the commitment rests squarely on the Principal’s shoulders. In the event that the Principal fails to fulfill the commitment, the Surety will step in and act as a guarantee for the Principal.
In the event that the bond is called into question due to a breach of contract, the Surety will see to it that the Obligee is compensated. After that, the Principal is responsible for making restitution to the Surety for any payments that were already made. People with poor credit histories are encouraged to submit an application for this security.
The candidate for a license will have to provide their credit score in order to determine the payment for the surety. For individuals who have outstanding credit ratings, the bond premium will begin at 1% of the total bond amount. The amount of the surety is $10,000.