California Real Estate Practice Exam

Automatic renewal of a lease may be voidable if the?

1. Renewal clause is not printed in the correct size type

2. Lease is orally agreed upon

3. Property is not inspected regularly

4. All expenses are not disclosed upfront

The correct answer is: Renewal clause is not printed in the correct size type

The correct answer highlights a specific condition regarding the automatic renewal clause in a lease agreement. In California, the law stipulates that certain provisions, including those concerning automatic renewals, must be clear and conspicuous in the lease document. If the renewal clause is not printed in a sufficiently large type or in a manner that makes it clear to the tenant, it may be deemed voidable. This is intended to protect tenants from being unaware of important terms that could significantly affect their obligations under the lease. The other conditions mentioned do not directly relate to the validity of an automatic renewal clause. An orally agreed lease, while enforceable under certain circumstances, does not have the same protections and disclosures as written leases. Regular property inspections and the disclosure of expenses, while important for tenant rights and landlord responsibilities, do not directly bear on the enforceability of an automatic renewal clause. Thus, the emphasis on the size of the type in the lease is crucial for ensuring transparency and fairness in lease agreements.