Landlords, Tenants and Property Management

Transcription

1 CITE THIS READING MATERIAL AS: first tuesday Landlords, Tenants and Property Management Eighth Edition

2 Table of Contents i Table of...iv Introduction...vi Glossary Table of Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Fee vs. leasehold A matter of possession... 1 The tenancies in real estate Know your tenancy or lose time...9 Landlord s right to enter Conflict with occupant s right to privacy...21 Tenant leasehold improvements Ownership rights when a tenant vacates...37 Options and the right of first refusal to buy Tenants with rights to acquire the premises...51 Ownership and Possession Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Property management licensing When is a CalBRE license required?...61 Property management agreement Authority to operate a rental property...69 A property manager s responsibilities An evolving standard of conduct Resident managers Employees: not independent contractors, not tenants Identification of property manager or owner Notice to tenant of agent-for-service Exclusive authorization to lease Leasing agent s bargain for fees Exclusive authorization to locate space A leasing agent and the nonresidential tenant Cost of operating in leased space Disclosures by leasing agents Agency and Property Management

3 ii Landlords, Tenants and Property Management, Eighth Edition Deposits and Rents Chapter 14 Chapter 15 Chapter 16 Chapter 17 Security deposits and pre-expiration inspections Cover for a tenant s nonperformance Residential turnover cost recovery Rent is set to include all operating expenses Accepting partial rent Residential and nonresidential landlord rights Changing terms on a month-to-month tenancy Landlord s notice to tenant Enforcing Rents; Forfeiting Tenancies Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Forfeiture of the lease Lease agreement obligations survive Surrender cancels the lease agreement Lost ability to recover future rents Delinquent rent and the three-day notice Pay or forfeit your right of possession Three-day notices to quit for nonmonetary breaches Curable and incurable nonmonetary breaches Other amounts due under three-day notices Know what the judge will allow Notices to vacate Termination of periodic tenancies Personal property recovered by tenant Reclaim it on notice or lose it Constructive eviction cancels the lease Interference forces the tenant to vacate Maintenance and Security Chapter 26 Chapter 27 Chapter 28 Chapter 29 Care and maintenance of property Tenant obligations and remedies Implied warranty of habitability Safe and sanitary living conditions Security to prevent crimes Protective measures and warnings Dangerous on-site and off-site activities Duty to all to remove on-site dangers...309

4 Table of Contents iii Chapter 30 Chapter 31 Chapter 32 Chapter 33 Chapter 34 Nonresidential lease agreements The conveyance of a leasehold Rent provisions in nonresidential leases Setting the rent Adjustable rent provisions Economic goals of nonresidential landlords Nonresidential use-maintenance provisions Shifting ownership obligations to tenants Lease assignments and subleases Consent conditioned on exactions Nonresidential Lease Provisions Chapter 35 Chapter 36 Chapter 37 Residential rental and lease agreements A review of periodic vs. fixed-term tenancies Civil rights and fair housing laws Property rights and an individual s status Residential rent control Police power and rent control Residential Leases and Rental Agreements Chapter 38 Chapter 39 Attornment clauses in nonresidential leases Altering priorities for lenders Due-on leasing regulations Rising interest rates bring lender interference Lender Considerations

5 iv Landlords, Tenants and Property Management, Eighth Edition Table of Full-size, fillable copies of all 350+ first tuesday forms can be found in the -on-cd accompanying this course. Full No. Form Name Page 111 Exclusive Authorization to Locate Space Schedule of Leasing Agent s Fee Right to Enter and Exhibit Unit to Buyers For Residential and Nonresidential Rentals Notice to Occupant of Entry and Completion of Showing For Residential and Nonresidential Rentals Standard Option to Purchase Irrevocable Right-to-Buy Nonresidential Lease Agreement Addendum Alienation of Leasehold Change of Owner of Property Manager Addendum to Rental or Lease Agreement Partial Payment Agreement Nonresidential Partial Payment Agreement Residential Condition of Premises Addendum Condition of Furnishings Addendum And Inventory Tenant s Property Operating Expense Profile Notice of Intent to Enter Dwelling Notice of Right to Request a Joint Pre-Expiration Inspection Statement of Deficiencies on Joint Pre-Expiration Inspection Day Notice to Vacate For Use by Residential Landlord Day Notice to Vacate For Use by Residential Landlord Day Notice of Change in Rental Terms Day Notice to Vacate From Tenant Day Notice to Quit Due to Foreclosure To Holdover Residential Tenant Three-Day Notice to Pay Rent or Quit With Rent-Related Fees

6 Table of v No. Form Name Page Three-Day Notice to Pay Rent or Quit Without Rent-Related Fees Three-Day Notice to Perform or Quit Three-Day Notice to Quit Residential and Nonresidential Right of First Refusal to Buy Addendum Proof of Service For Service of Notice to Real Estate Tenants Notice to Landlord to Surrender Personal Property For Use by Residential Tenants Only Costs Payable to Reclaim Personal Property Notice of Right to Reclaim Personal Property To Residential Tenant After Termination of Tenancy Notice of Right to Reclaim Personal Property To Others with an Interest in Property Security Deposit Disposition On Vacating Residential Premises Termination of Lease and Surrender Agreement Resident Manager Agreement Notice of Nonresponsibility From Landlord (Calif.Civil Code 3094) Exclusive Authorization to Lease Property Request for Homeowner Association Documents Lease-Option Contract for Deed Letter of Intent Annual Property Operating Data Sheet (APOD) UCC-1 Financing Statement Residential Lease Agreement Nonresidential Lease Agreement Single Tenant Gross...6, 323,. 346, 350, 351, , , 374, 382, Nonresidential Lease Agreement Percentage Lease Lender Subordination and Attornment Provisions , Property Management Agreement...71 Partial

7 CITE THIS READING MATERIAL AS: Realty Publications, Inc. Office Management and Supervision First Edition

8 Table of Contents i Related...ii Glossary Table of Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Brokerage activities: agent of the agent Introduction to agency... 1 Creation of office policies, rules and systems for review Setting standards for recruiting agents Review of agent activities, records, funds and reports Tracking transactions handled by a broker s agents...31 Federal and state prohibited discriminatory practices Property rights cannot be based on status...49 Marketing and advertising Choose your brand For FREE, customizable marketing materials, go to realtypublications.com/farm Appointment and supervision of an office manager The supervisory role of an office manager Office Management and Supervision For a full-size, fillable copy of this or any other form in this book that may be legally used in your professional practice, go to realtypublications.com/forms. Table of No. Form Name Page 115 Finder s Fee Agreement Agent Income Data Sheet Assistant Employment Agreement Office Manager Employment Agreement Listing Information Report Full 505 Broker-Agent Employee Agreement Independent Contractor Employment Agreement File Activity Sheet Transaction Coordination Sheet (Seller s Agent) Partial

9 ii Office Management and Supervision, First Edition Related Office Management No. Form Name 119 Compensation Disclosure In A Real Estate Transaction Disclosure Of Mortgage Loan Broker Fees 121 Release And Cancellation Of Employment Agreement 201 Stack Sheet Loan Origination and Transmittal 205 Affiliated Business Arrangement Disclosure Statement 233 Loan Transmittal Summary Preliminary Submission to Lender 500 Agent Interview Sheet 501 Agent Identification And Contact Information 502 Agent Itinerary And Schedule 508 Office Agents Licensing Record 511 Designated Officer Employment Agreement 519 Affiliated Business Arrangement Disclosure Statement Transaction Coordination Sheet (Buyer s Agent) Prospective Purchase Through COE Transmittal And Request Memo Transaction Coordination Expired Listing Report Or by Cancellation 523 Property Sold Report Administrative and Fee Information Transmittal And Stack Sheet On Sale For Administrative File Review 524 Disbursement Of Brokerage Fees Broker Instructions to Escrow 525 Confirmation Memorandum 526 Settlement Agreement With Release and Waiver 527 Conflict Of Interest Kinship, Position or Undue Influence 535 Interest-Bearing Trust Account Agreement

10 CITE THIS READING MATERIAL AS: first tuesday Agency, Fair Housing, Trust Funds, Ethics and Risk Management Sixth Edition

11 Table of Contents i Table of...iv Introduction... v Glossary Table of Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Agency: authority to represent others Introduction to agency... 1 The agency law disclosure Legislated order...5 Agency confirmation provision Mandated for purchase agreements...15 Dual agency and subagency Agency and fee sharing concepts...21 A broker s use of supervisors Delegated supervision, not agency...27 Opinions with erroneous conclusions When an opinion becomes a guarantee Agency Chapter 1 The Federal Fair Housing Act Introduction to fair housing...47 Fair Housing Chapter 2 The Civil Rights Acts of 1866 and 1870 Property rights cannot be based on race Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Americans with Disabilities Act Providing access to nonresidential real estate California s protected civil rights The Unruh Civil Rights Act...65 Fair housing for disabled persons California-style access for disabled tenants...71 California Fair Employment and Housing Act Discriminatory practices, exemptions and remedies CalBRE regulation of discrimination Guidelines for broker conduct...79 Equal Credit Opportunity Act Federal fair lending rules...83 Chapter 9 The Housing Financial Discrimination Act of 1977 California s fair lending laws... 89

12 ii Agency, Fair Housing, Trust Funds, Ethics and Risk Management, Sixth Edition Chapter 10 Chapter 11 Chapter 12 Home Mortgage Disclosure Act Lenders release home loan data...95 HUD advertising guidelines for sales and rentals Avoiding discrimination in advertising...99 Prior occupant s use, affliction and death When and when not to disclose Trust Funds Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Trust funds overview Introduction to trust funds Advance fees are trust funds Deposits retain trust status until disbursed as instructed. 115 Advance costs are trust funds Funds handed to the broker for marketing costs Trust account management The withdrawl of trust funds Trust fund accounting Trust account bookkeeping Penalties for misuse of trust funds Commingling, conversion and restitution Ethics Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Conflict of interest Professional relationships compromised Counteroffers to promote clarity Defacing a previously signed document Property related disclosures Sold as-is is a prohibited disclaimer property is sold as disclosed The borrower and loan broker relationship The accurate representation of mortgage terms Kickbacks, price fixing and MLS access Duplicate charges for services...179

13 Table of Contents iii Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Management of exposure to liability The reduction of uncertainties for harm An agent s impact on their broker The agent of the agent Due diligence obligations of the seller s and buyer s broker Due diligence by the seller s agent Disclosure of known or suspected adverse facts Selecting and hiring a home inspector A seller s residence in foreclosure The equity purchase investor scheme Cancellation, release and waiver Known and unknown claims Risk Management Defines key terms and supplies page references for further study Glossary Future errata, supplemental material, updates and recent developments specific to Agency, Fair Housing, Trust Funds, Ethics and Risk Management are available online for further research within the Online Reading section of your Student Homepage at Updates

14 iv Agency, Fair Housing, Trust Funds, Ethics and Risk Management, Sixth Edition Table of Full-size, fillable copies of all 350+ first tuesday forms can be found in the -on-cd accompanying this course. Full No. Form Name Page 104 Loan Broker Listing Agreement Listing Package Cost Sheet Equity Purchase Agreement Counteroffer Cancellation of Agreement Agency Law Disclosure Office Manager Employment Agreement Interest-Bearing Trust Account Agreement Record of All Trust Funds Received