LANDLORD’S KEY MONEY MUST BE DISCLOSED
Beginning January 1, 2002, it became unlawful for any person to demand or collect any fees, often referred to as “key money” in connection with a commercial or non-residential lease unless such payment is disclosed in the written rental or lease agreement. Failure to disclose such a payment can subject the landlord or other person demanding the key money to a judgment requiring return of the key money, a penalty of three times the amount demanded, plus attorney’s fees and court costs. Key money is not prohibited by new Civil Code § 1950.8. It simply must be disclosed in writing.
