Cal. Civ. Code § 4
When a rent concession shall have been made in the case of any lease heretofore or hereafter entered into, it shall be unlawful and a violation of this Act for any person knowing of such concession, to exhibit such lease to any purchaser or lessee or prospective purchaser or lessee of real estate, any part of which is covered by the lease, or to any lender of money, or prospective lender of money on such real estate or any part thereof as security, unless such lease shall bear the legend and memorandum required by section 3 hereof in the case of leases heretofore made
Operative Text
When a rent concession shall have been made in the case of any lease heretofore or hereafter entered into, it shall be unlawful and a violation of this Act for any person knowing of such concession, to exhibit such lease to any purchaser or lessee or prospective purchaser or lessee of real estate, any part of which is covered by the lease, or to any lender of money, or prospective lender of money on such real estate or any part thereof as security, unless such lease shall bear the legend and memorandum required by section 3 hereof in the case of leases heretofore made.
Under 765 Ill. Comp. Stat. 730 § 4, when a rent concession has been granted under a lease, it is unlawful for anyone who knows about that concession to show the lease to a buyer, prospective buyer, tenant, prospective tenant, lender, or prospective lender unless the lease already carries the required legend and memorandum described in Section 3 of the same Act. The rule is designed to prevent a lease from being presented to third parties in a way that obscures or omits the existence of a rent concession. Essentially, the disclosure marking must be on the document before it can be shared in any real estate or financing transaction.
Plain English — not legal advice.
Property owners and managers operating under 765 Ill. Comp. Stat. 730 § 4 generally ensure that any lease containing a rent concession is properly annotated with the Section 3 legend and memorandum before that lease is shown to buyers, prospective tenants, or lenders in connection with a sale, re-leasing, or financing transaction. Compliant operators typically review all lease documents for concession arrangements prior to sharing them with any third party involved in a real estate or lending transaction. Maintaining a consistent document-review process helps ensure that no lease with an undisclosed concession is inadvertently exhibited.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants should be aware that under 765 Ill. Comp. Stat. 730 § 4, any lease that includes a rent concession must display the required legend and memorandum before it can lawfully be shown to buyers, other prospective tenants, or lenders. If a tenant believes a lease was exhibited without the required disclosure marking, that potential violation of the Act may be relevant in dealings with a landlord or in proceedings involving the property. Tenant-rights organizations or a licensed Illinois attorney can help explain what options may be available when this provision appears to have been disregarded.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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