California Real Estate Practice Exam

A valid lease need NOT contain:

1. amount of payment

2. description of property

3. names of parties to lease and terms of lease

4. stipulated transfer fee

The correct answer is: amount of payment

In a valid lease agreement, it is essential to have certain basic components for it to be enforceable. Typically, a lease must identify the parties involved, provide a description of the leased property, and outline the terms of the lease, including the duration of the lease and payment obligations. While it's common for a lease to specify the amount of payment, California law does not strictly require a lease to contain an exact rent amount for it to be valid. Instead, a lease can be valid with terms indicating how the rent will be calculated or referencing a separate document that specifies the payment amount. Additionally, other terms, such as a stipulated transfer fee, may be included but are not fundamental requirements for a lease to exist. The absence of a specified rent amount does not make a lease invalid as long as the other essential elements are present. Therefore, a lease may still be enforceable without a clearly stated amount of payment, making this aspect non-essential compared to the core components necessary for a valid lease agreement.