C.A.R. Form SDDA, the Security Deposit Exemptions Disclosure and Addendum, is a California Association of Realtors form used in residential lease transactions to document whether the landlord qualifies for the small-landlord exemption to California’s one-month security deposit cap.1California Association of Realtors. List of Standard Forms It attaches to the lease, records the deposit amount, and creates a written record of the legal basis for that amount.
When the Form Is Needed
As of July 1, 2024, California Civil Code Section 1950.5, as amended by AB 12, caps most residential security deposits at one month’s rent, furnished or unfurnished. The legislature left a narrow exemption for certain small landlords, who may collect up to two months’ rent. The SDDA is how that exemption gets disclosed in writing.
Any time a landlord collects more than one month’s rent as a security deposit, both sides need documentation showing the exemption was properly claimed. The SDDA does that job. It also works when no exemption applies: the form records that the standard one-month cap governs the transaction, so the tenant has a clear paper trail either way.
Who Qualifies for the Small Landlord Exemption
Under Section 1950.5, a landlord may charge up to two months’ rent as a deposit only if all of the following are true:
- The landlord is a natural person, not a corporation, LLC, or other business entity.
- The landlord owns no more than two residential rental properties.
- Those properties together contain no more than four dwelling units.
Two boundaries matter here. If a real estate broker manages the property for the landlord, the exemption does not apply even if the ownership test is met. And active duty servicemember tenants are always subject to the one-month cap, regardless of the landlord’s status.
What to Fill In
The SDDA functions as both a disclosure and an addendum, so every field ties back to the lease it accompanies. Start with the property address, the date, and the legal names of the landlord and tenant. These identifiers link the form to the correct lease file.
The core of the form is the exemption statement. If you are the landlord and claim the exemption, you confirm that you meet the eligibility criteria and enter the deposit amount being collected. If you do not qualify, the form records that the one-month cap applies. The tenant receives a written record of the deposit terms and the legal basis for the amount.
Both landlord and tenant sign and date the form. Deliver and sign it alongside the lease itself, not after the fact. If the landlord’s circumstances change mid-tenancy in a way that affects eligibility, a new or amended disclosure may be appropriate.
Where to Get the Form
C.A.R. standard forms are proprietary documents developed by the C.A.R. Legal Department and distributed through the Transactions (zipForm Edition) platform.2California Association of Realtors. California Association of Realtors C.A.R. members access zipForm free through their membership login. Non-members who hold a valid California Department of Real Estate license or California State Bar license can purchase annual access for $1,499.3California Association of Realtors. Transactions (zipForm Edition) for Non-Members
The form is not freely available to the general public. Landlords who are not licensed agents typically receive the SDDA through their listing agent or property manager. If you are handling a lease without agent representation, ask your local Association of Realtors affiliate about access.
Keeping the Signed Form
Licensed brokers must retain copies of transaction documents for at least three years from the closing date, or from the listing expiration date if no transaction closes.4California Legislative Information. California Business and Professions Code 10148 For lease transactions, the sensible practice is to hold the signed SDDA for the length of the tenancy plus three years, because deposit disputes can arise at move-out or later.
Landlords who are not licensed brokers are not directly bound by that statute, but retaining the signed SDDA at least through the end of the lease is straightforward protection. Digital copies stored with the lease are fine, provided the signatures are legible and the document is complete.
Risk of Skipping the Disclosure
Collecting more than one month’s rent as a deposit without qualifying for the exemption, or without disclosing it properly, exposes a landlord to liability. A tenant who was overcharged can demand the excess back and pursue the claim in small claims court. Under Section 1950.5, a landlord acting in bad faith regarding security deposit obligations can face statutory damages of up to twice the deposit amount, on top of returning the actual deposit.
A properly completed and signed SDDA is the landlord’s primary evidence that the deposit amount was lawful and that the tenant acknowledged the terms before paying.