THOMAS KAY REALTY, INC. RENTAL AND PROPERTY MANAGEMENT AGREEMENT

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1 THOMAS KAY REALTY, INC. RENTAL AND PROPERTY MANAGEMENT AGREEMENT THIS AGREEMENT, is made this day of, 20, between Thomas Kay Realty, Inc. (hereinafter referred to as Broker), and (hereinafter referred to as Owner(s) Section 1. Authority to Manage Property and Exclusive Right to Lease Property: The Owner hereby grants to the Broker the exclusive right to manage the real property owned by the Owner and located at, as Broker deems appropriate. In addition, the Owner hereby grants to the Broker the exclusive right to obtain for the Owner lessees for the premises. Section 2. Term/Cancellation: This Agreement shall commence on, 20, shall continue for a term of one year, and shall automatically renew for a subsequent year unless cancelled in writing by Owner and said notice of Owner cancellation received by Broker at least sixty (60) days prior to the last day of the one year term and any successive term(s) thereafter. Broker is certain that Owner will be satisfied with its services hereunder, however, if Owner is not totally satisfied with said services, Owner may, by the 90th day of the initial one year term, terminate this agreement, without penalty, by notifying Ronald Gerson, Broker/Owner via at of Owner s intent to cancel. In addition to the termination provision contained above, either party may terminate this agreement with thirty (30) days prior written notice. In the event that Owner terminates this agreement without thirty (30) days prior written notice, Owner shall incur a $ termination fee. Section 3. Rental Terms and Conditions: Broker is authorized to negotiate, in its sole discretion, a lease for the Property upon prevailing terms and conditions in the community and the particular circumstances concerning this real property. Section 4. Status of Property: a) The property is residential. The property is currently vacant occupied by one or more tenants. If the property is currently occupied, Owner agrees to provide Broker a copy of all current leases pertaining to the property simultaneously with the execution of this agreement. b) Warranties. Please describe all warranty information, if any, and provide name of warranty company, contact information (and attach copy of warranty documentation): Page 1 of 15

2 c) Encumbrances. Please describe any type of deed restrictions, condominium documents, rental limitations, etc.: d) Name of Condominium Association and Contact Information: (Attach copy of Association documents including its Rules and Regulations). Section 5. Broker s Duties: On behalf of Owner, Broker shall use due diligence to manage and operate the property pursuant to the terms of this agreement. Broker s responsibilities shall include: a) Managing tenant relations, including the collection, holding and disbursal of rents and other amounts due or to become due to Owner; handling tenant requests, complaints, and negotiations; terminating tenancies and signing and delivering appropriate notices to Tenants on behalf of Owner. b) In order to preserve and maintain the property, to comply with all lease requirements, obligations imposed on an Owner(s) pursuant to the laws of Florida and this agreement, Broker shall provide maintenance and repair to the interior, exterior, and landscape of the real property as deemed appropriate by the Broker. Broker is authorized by Owner to make repairs or enter into contracts for the repair, maintenance and cleaning, and to pay for same, on behalf of Owner up to $ Owner shall immediately reimburse Broker for said expenditures upon Broker s presentation to Owner of an invoice. If Broker enters into a contract to have the repair made, Owner shall promptly pay said contractor pursuant to the terms of the subject contract. In the event that Owner fails to promptly reimburse Broker or pay for the contracted repair made by others, Broker is authorized by Owner to withhold said delinquent amount(s) from rentals received by Broker from Tenants. Any expenditure(s) in excess of this $ limit requires prior approval by Owner and payment in advance by Owner. These provisions notwithstanding, in the event that there is a required repair that exceeds $ and Broker deems such repair to be an emergency and immediately necessary for the safety of the Tenant or the protection of the property, and Broker cannot obtain Owner s immediate authorization, Owner hereby authorizes Broker to make said repair or enter into a contract and Owner agrees to immediately reimburse Broker for such emergent services upon Broker s presentation of a written invoice. c) Routine Maintenance. Broker shall supervise routine maintenance and repairs at vendor s actual cost. Broker shall select such repair vendor based on Broker s experience without the benefit of multiple bids. d) Substantial Repairs. When substantial repairs and maintenance items exceed $1,000.00, Broker may obtain up to two (2) bids from competing vendors for said work. During Tenant vacancies, Broker may be required to turn on utilities for maintenance and repair vendors to perform work, or for other reasons deemed necessary by Broker, and said cost of such Page 2 of 15

3 utilities shall be an expense of the Owner(s). e) Maintaining books, accounts, and records that reflect all revenues and expenditures incurred in connection with the management and operation of the property. The books, accounts, and records shall be maintained in accordance with generally recognized accounting principles at the principal place of business of the Broker. Owner shall have access to the books, accounts, and records upon reasonable notice to Broker during normal business hours. Broker shall provide Owner with monthly income and expense reports upon Owner s request and shall provide Owner with a Form 1099 at the end of each year. f) Broker shall transmit payments to Owner via Automatic Clearing House (ACH) after Tenant s check has cleared. Upon execution of this agreement, Owner shall provide to Broker all required documentation and authorization(s) to effectuate this ACH provision. g) All leases shall be prepared by an attorney, which form of lease has been approved by Owner. Owner agrees that all leases shall name Owner as Landlord, with Broker as agent for Owner, and shall be executed by Broker on behalf of Owner. Owner acknowledges and agrees that in the State of Florida, a manager may not draft a lease. Accordingly, Owner agrees that all leases shall be prepared by an attorney selected by Broker and that there shall be a fee of $75.00 for the preparation of the lease, said fee to be paid by the Tenant and collected from the Tenant s initial move-in deposit. All additional fees paid by Tenant to Management Company, not required to be paid by Owner pursuant to this Agreement, shall be deemed income to Management Company, free and clear of any claim by Owner. h) Broker shall communicate with Owner(s) with respect to the prosecution of necessary legal proceedings for rent, possession, or damages and Broker is authorized, but is not required, to file legal proceedings to enforce Owner s rights under any lease or to undertake collection efforts against any Tenant. All such legal proceedings or collection efforts shall be at Owner s sole cost and expense. In the event any Tenant procured by Broker under any lease shall default on the payment of rent or default in the performance of any other material provision of the lease, abandon the property, or shall hold over in possession beyond the lease term, Broker shall have the right, in its sole discretion, to institute legal proceedings against Tenant (and all other persons occupying the property) for eviction, unlawful detainer, or any other civil action. Any and all legal proceedings referred to above shall be prosecuted by a licensed Florida attorney selected by Broker. i) Broker shall obtain legal consultation on any issues which, in the Broker s sole discretion, are required. Attorney s fees for such legal consultation shall be billed to Owner(s). Owner shall be notified prior to consultation. j) Broker shall report net rental income to the Internal Revenue Service as required by law and provide Owner(s) a form1099 stating the reported net rental income. Upon Broker s request, Owner(s) shall complete a Form IRSW-9 and, if more than one owner, shall designate one owner to complete form IRSW-9. (See form IRSW-9, attached.) Page 3 of 15

4 Section 6. Duties of Owner(s): The Owner(s) shall: a) Cooperate with the Broker in carrying out the purposes of this Agreement. b) Authorize ACH payment transfers to Owner s bank account by signing an ACH authorization agreement. If Owner elects not to authorize ACH payments, Owner agrees to pay to Broker an additional charge of $15.00 for each payment processing by Broker. c) Provide Broker with three (3) keys to all doors, mailboxes, etc. and two (2) automatic garage door controls, the code to any security system and keyless entry systems. Broker shall have authority to change keys and codes as Broker deems advisable. Broker may determine to change locks between tenants and bill such cost to Owner. Owner shall be provided with any replacement keys and codes. d) Provide complete and accurate information to Broker including, but not necessarily limited to: all information concerning the condition of the property, fixtures, and personal property, information concerning lead based paint hazards if the property was constructed prior to e) In the event of a sale, transfer, assignment, encumbrance and/or other alienation of the property, Owner shall give written notice to Broker within ten (10) business days of Owner s knowledge of same. Notwithstanding the foregoing, the terms of this agreement shall continue in full force and effect. f) Pay all amounts billed by Broker for authorized expenditures within ten (10) days after receipt of written notice from Broker of the expenditure. If Owner fails to timely reimburse Broker, Owner authorizes Broker to reimburse itself out of rents collected on Owner s behalf. g) Authorize and pay for any repairs reasonably necessary to deliver and maintain a safe dwelling unit for the Tenant. Further, Owner authorizes Broker to repair or have repaired any dangerous and/or defective conditions upon notice of their existence by Tenant. h) If Broker is on notice that the Tenant will be vacating the premises at the end of any given month, Owner agrees that Broker may retain one-half (1/2) of Tenant s last month s rent to initiate any needed repairs with the balance of any monies not used for repairs transmitted to Owner(s). i) If the property is a condominium unit, or subject to a homeowner s association, Owner shall furnish the Broker with all current declarations, covenants, bylaws, rules and regulations of the association. All leases shall be subject to the condominium documents. Owner understands and agrees that in no event shall Broker be liable to the Association for any fees, fines, or assessments, even if same are the result of Tenant s failure to comply with the terms of the condominium documents. Owner shall indemnify and save harmless Broker in the Page 4 of 15

5 event that the Association attempts to pursue such fees, fines or assessments against the Broker. j) Deliver to Broker all service contracts and warranties that may exist in connection with the property. Owner shall supply all utility services necessary to maintain the property while the property is unoccupied. All leases shall require that, while occupied, all utility services shall be in the name of Tenant. Broker shall have no liability for nonpayment of or theft of any utility service by Tenant. k) Monies due with agreement. Owner shall, upon execution of this agreement, pay Broker $50.00 for a set up and administrative fee. Marketing shall commence as soon as the property is prepared and ready for Tenant move-in. If Broker is required to coordinate pool, lawn or additional maintenance service while property is vacant, funds equal to one month service is also due upon execution of this Agreement and monthly thereafter until said property is occupied so that Broker may pay its vendor(s) in a timely manner. Owner acknowledges and agrees that if additional work is required to ready the home for occupancy, a fee of $00 per hour for coordinating repairs, inspection, etc. shall be due and payable prior to the commencement of Broker s services. Broker s maintenance coordinators shall contact Owner with estimated billable time prior to charges being assessed. Owner shall be required to fund all repairs prior to work. Once Broker has funds in its account, Broker shall commence the applicable repairs. l) Indemnification and hold harmless. Owner agrees to indemnify and hold harmless Broker and Broker s officers, directors, agents, and employees from all claims, demands, causes of action, costs, and expenses, including reasonable attorney s fees at all levels, and from any liability to any person based on: 1. Owner s misstatement, failure to disclose, negligence, action, inaction, or failure to perform the obligations of this Agreement or any lease or vendor agreement. 2. The existence of undisclosed material facts about the property. 3. Broker s performance, at Owner s request, of any task beyond the scope of this Agreement. 4. Services, products and expenses provided by any vendor. 5. The condition of the property except when the condition is a direct result of Broker s negligence. 6. Use or occupancy of the premises. This subparagraph shall survive expiration or termination of this Agreement. m) Property visit and tenant communication. Owner agrees not to visit property without accompaniment of Broker and further agrees that all communication with tenants shall be through Broker only unless Broker agrees to waive this stipulation. Section 7. Rents Collected: Prepaid rents by Tenant shall be paid to Owner in the actual month when due. Section 8. Fees and Commissions: Owner(s) agrees to pay Broker its fees and commissions as follows: a) Management fees: Owner shall pay Broker a management fee equal to ten percent (10%) of Page 5 of 15

6 the monthly rent, or a minimum sum of $90.00 per month, whichever amount is greater. Except as discussed below, said management fee shall be due and payable to the Broker each and every month under the lease agreement, or any extension thereof, regardless of whether Tenant pays the rent or any portion thereof for any particular month. The Management Fee is separate and apart from the Leasing Fees described in Section 8d below. The Management fee shall not be due and payable when the home is vacant and marketed for leasing. b) Fees Beyond Scope of Usual Management Duties: Owner shall compensate Broker at an hourly rate of $0.00 or at a set fee, if agreed upon, for services provided to Owner for management related services, including but not necessarily limited to: receiverships, garnishments, court appearances, audits, capital improvements, supervision and coordination of extensive repairs, restorations, refurbishments, renovations, insurance claims, eviction coordination, property inspections when home is unoccupied, and non-routine landscaping for the subject property. c) Late Fees: In the event it becomes necessary to charge a tenant a late fee, for ongoing collection efforts, the late fee shall be shared with the Owner on the following basis: fifty percent (50%) to Broker and fifty percent (50%) to Owner. d) Leasing Fees: For each lease entered into during the term of this Agreement, Broker shall be entitled to a rental commission equal to seventy five percent (75%) of the total monthly rental amount. Please note that this leasing fee is a one-time charge for each lease entered into with a new tenant. e) Lease Renewal or Extension Fee: Owner agrees to pay Broker a renewal fee of $ for each lease renewal between Broker and the same Tenant(s) occupying the subject property. Compensation for said services shall become due and payable upon the signing of the renewed lease. If Tenant renews on a month-to-month basis the same $ fee shall be due and payable upon Tenant s first monthly rental payment during Tenant s month-tomonth occupancy. For the same lease, a renewal fee shall be paid by Owner no more than once in any twelve (12) month period. Broker shall continue to rent the subject property unless and until notified in writing of Owner s intention not to renew, which notice shall be received by Broker not less than ninety (90) days prior to lease expiration. f) Sales Commission on Options: If any lease agreement entered into or renewed during the term of the agreement contains an option or right of first refusal in favor of Tenant to purchase the leased premises, Owner shall pay to Broker a sales commission of three percent (3%) at time of closing. g) Owner Marketing of Property. Owner shall not market the property for sale without first providing notice to Broker. Management Company shall not give permission for a sales agent (other than Broker) to enter the property without notification to, and approval from, Tenant and Owner. h) Inspection fees. The interior and exterior of Owner s property shall be inspected annually with photographs and printed reports to be furnished to Owner for Owner s records. Broker s Page 6 of 15

7 fee for this service shall amount to $ All fees provided in this section, together with all expenses incurred, relating to the property and authorized under this Agreement, shall be retained by Broker from rental income received from Tenants. These retained fees and expenses shall be accounted for in writing and delivered to Owner on a monthly basis on or before the 20 th day each month. The remaining rents shall be transmitted to the Owner on a monthly basis, along with the monthly accounting of fees and expenses retained. No rental funds shall be transmitted to Owner until the checks received from the Tenant have cleared Broker s trust account. All interest earned on said rental payments while in Broker s trust account shall remain the property of Broker. Owner agrees that at all times, a minimum reserve of $250 shall be kept in Broker s trust account for emergency repairs. Section 9. Advertising: Broker is authorized to advertise the rental property in whatever medium it deems to be in Owner s best interests. Broker shall list the property in the Multiple Listing Service (MLS), fliers at the property, signage on site (if allowed), and market the property on all web sites with which Broker has a cooperative agreement. Owner agrees to pay Broker $00.00 per month when property is vacant and being marketed for rental. Owner acknowledges that property will not be marketed until home is rental ready or current Tenant has provided notice to vacate and home is showable. Broker has the right to place its signage at or on the premises, as applicable, and remove any and all other signage, if any. Broker may use digital photos to market the home via the web and any other appropriate advertising medium. Section 10. Deposit Receipts: Broker is authorized to accept and provide receipts and hold all monies paid or deposited by Tenant with respect to the prospective rental in accordance with the laws of the State of Florida and the regulations of the Florida Real Estate Commission. Section 11. Lock Box: Owner desires utilization of a lock box system. Owner agrees that the lock box system is for the benefit of the Owner and Owner releases Broker and its affiliates, officers, employees, agents, and shareholders from any and all liability and responsibility in connection with any loss that may occur as a result of Broker s use of this lock box system. Section 12. Owner(s) Warranties: a) Owner hereby warrants unto Broker that Owner is the owner of the premises and has all requisite authority to enter into a lease of the premises and receive the rents therefrom. In the event that Owner(s) is a corporation or other business entity, Owner(s) warrants to Broker that this Agreement has been duly authorized in accordance with Florida law and the internal requirements of Owner s entity. b) If more than one Owner, the Owners agree that a signature by any one owner authorizing any action by Broker is binding on all Owners unless notice to the contrary is provided to Broker Page 7 of 15

8 pursuant to Section 24 below. c) Owner warrants the accuracy of all information given by Owner to Broker concerning the subject premises. d) Owner(s) understands and agrees that any time a foreclosure complaint is filed on the property, if any, this contract may be immediately terminated by Broker without further cause. If, after notice of the foreclosure, Broker continues its representation, Owner shall pay Broker an additional fee in the amount of $00.00 upon service of the foreclosure complaint upon Tenant. e) Owner warrants that the subject property meets the code requirements for smoke detectors. If the property is found to be non-compliant for smoke detectors by local and/or state regulators, Owner agrees to pay Broker $00.00 for obtaining smoke detectors purchased at Owner s expense. f) Owner(s) warrants that the premises are in compliance with Florida Statute or local housing ordinances pertaining to the rental of residential property. g) Owner warrants that Owner is current with Owner s mortgage, property taxes, association/condominium fees and any and all other expenses related to the subject property. h) Owner warrants that Broker has the right to manage the subject property and act on Owner s behalf with respect to the leasing and managing of such property in accordance with the terms of this Agreement. Owner further warrants that Owner has given Broker the requisite authority to execute leases and agreements as Owner s agent for the subject property in accordance with the terms of this Agreement. As to surrender of the subject property, Broker is specifically authorized to enter into Lease Buy Out agreements with tenants. Section 13. Insurance: Owner agrees: a) To procure and maintain public liability insurance insuring Owner against any and all damages resulting to persons or property in or about the subject property in the minimum amount of Three Hundred Thousand Dollars ($300,000.00) per person or Five Hundred Thousand Dollars ($500,000.00) per person if the subject property contains a pool, attractive nuisance or latent defects. b) That it is Owner s responsibility to procure and maintain fire, casualty, windstorm, flood, and/or other property insurance on subject property. Broker is not responsible for and will not procure or obtain such property insurance for Owner. c) Broker shall be named as an additional insured under any and all of Owner s insurance policies as they relate to the subject premises. d) That it is Owner s sole responsibility to investigate pet exclusions with Owner s insurance Page 8 of 15

9 carrier and Owner shall notify Broker in writing if PETS ARE NOT ALLOWED. Section 14. Non-Discrimination: Owner acknowledges and agrees that Broker cannot and will not conduct any transaction under this Agreement with consideration to the race, color, religion, sex, national origin, handicap, or familial status of any tenant, prospective tenant, owner, or prospective owner and Owner agrees not to ask Broker to do so. Notwithstanding the foregoing, Broker has certain resident selection criteria that are used to protect Owner s interests when leasing the subject property. The resident selection criteria is included in the application package for all applicants and may be provided to Owner if requested or viewed on-line at Section 15. Referral of Inquiries: Owner shall refer to Broker all leasing and sale inquiries Owner may receive relating to the premises. All negotiations with respect to the leasing, subleasing, assignment, termination, sale or other disposition of any lease or contracts covering the premises shall be conducted exclusively through the Broker. Section 16. Property Damage, Theft and Security Deposit Disposition: Owner agrees that Broker shall have no liability whatsoever for damage to the property or for items stolen, lost, or damaged under any circumstance other than an intentional act of Broker. Broker is given the exclusive authority to determine whether a charge should be made against a tenant s security deposit for damage or missing items and, if so, the amount to be charged. Broker shall have the authority to make claims against the security deposit on behalf of Owner and to settle disputes, if any, with the tenant. Broker has authority to require releases from Tenant before disbursing any disputed funds. Owner acknowledges and agrees that Broker shall not be liable for its failure to make a charge against a tenant s security deposit for damages that were not readily apparent to Broker. Section 17. Employment of Agents: Broker shall have the sole authority and responsibility to hire, supervise, and terminate employees, agents, or subagents necessary to carry out its obligations hereunder. It is expressly understood that all personnel hired by Broker shall be the employees of Broker and not of Owner. Broker is authorized to engage, on behalf of Owner, any entity that is an affiliate of Broker, provided that the compensation paid for the services shall be competitive with nonaffiliated entities providing the same or similar services. Before any services are engaged from an affiliate of Broker, if any, Broker shall notify the Owner of the relationship. Section 18. No Property Interest Created: Nothing in this Agreement shall be construed to create in Broker any property interest in or to Owner s property. Page 9 of 15

10 Section 19. Licenses: Broker shall at all times maintain such licenses and permits as are required for any of the various services to be performed by Broker under this agreement. Section 20. Independent Contractor: Broker is an independent contractor and not an employee of Owner for any purpose. Broker is not acting as a partner, joint venturer, or lessee of Owner and nothing herein shall be construed as granting unto Owner the right to control Broker s business or operations or the manner in which the business shall be conducted. Section 21. Sale of Property Management Company: In the event that Broker sells, assigns or otherwise transfers its property management business and this Rental and Property Management Agreement to a successor management company, during the term hereof, Owner specifically acknowledges and agrees that this Rental and Property Management Agreement may be assigned and/or transferred to Broker s successor in interest. Section 22. Hurricanes and Acts of God: Notwithstanding any other terms or provisions of this agreement, Owner acknowledges and agrees that Owner shall remain responsible to take any precautionary measures to avoid damage to the property from acts of God and Broker shall have no responsibility therefore absent an agreement to do so in writing between the parties. Section 23. Waiver: The waiver by a party to this Agreement or a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. Section 24. Notices: All notices, requests, demands or other communications in writing that are required or may be given under this Agreement, except changes to rental conditions in Section 3 hereinabove, which may be electronically communicated via fax or , shall be deemed to have been duly given if personally delivered or given on the date when received by prepaid, U.S. registered or certified mail/return receipt requested, properly addressed to the party intended to receive same at the following addresses: Page 10 of 15

11 To Broker: Thomas Kay Realty, Inc Sarno Road Suite 119F Melbourne, Florida Mailing Address: Thomas Kay Realty, Inc. Property Management Division 1600 Sarno Road 119F Melbourne, FL Facsimile: (321) To Owner: Mailing Address: Facsimile: To Property Manager: Ronald Gerson Telephone (Office): (321) Facsimile: (321) Address: Website: All costs of certified and/or return receipt requested mailings by Broker shall be charged to and paid for by Owner. It is each party s responsibility to provide written notice to the other of a change to their current mailing address. Section 25. Policy Changes to Standing Listing Agreement: In order to meet current conditions and to facilitate changes to the standing listing agreement, Owner(s) agrees that notice of any policy change by Broker is effective, and becomes a revision to the standing listing agreement, ten (10) days after mailing to Owner(s) by first class postage or , notwithstanding the notice provisions of Section 24 above, unless Owner(s) informs Broker of Owner s objection to such policy change within this ten (10) day period. Section 26. Termination of Agreement by Broker: Broker reserves the right to immediately terminate this agreement with oral or written notice to Owner if, in the opinion of Broker s legal counsel, Owner s actions or inactions are illegal, improper, or jeopardize the safety or welfare of any tenants or other persons. In this event, Broker may, at its option, hold Owner liable for any commissions due, fees due or monies owed Broker if the tenant remains in the property after such termination by Broker. Section 27. Facsimile Signatures: The parties agree that this Agreement, addendums and any amendments thereto, may Page 11 of 15

12 be executed by facsimile and/or electronic means and such facsimile or electronic signature(s) have the same force and effect as originals. Section 28. Eviction and Mold Remediation: Previous contradictory statements notwithstanding, it is understood and agreed by Owner and Broker that the final determination of any action or non-action with respect to tenant eviction and the presence of mold in the subject property is in the complete and sole discretion of the Broker. Section 29. Utilities. Unless otherwise agreed upon by and between the parties, Tenants are required to have telephone service, cable, electric service, water service, trash service and all other utilities in Tenants own name. In any lease where the Tenant(s) shall use utilities in the name of Owner and Tenant shall be responsible for all or part of the utility bills, Owner(s) shall pay the entire bill in a timely manner and forward copies to the Broker for Tenant reimbursement. Under no circumstance shall Owner(s) cause the termination of these utility services and Owner agrees to indemnify Broker for any damage or litigation fees/costs incurred by Broker if Owner(s) improperly terminates a utility service. If applicable, on behalf on Owner, Broker shall deduct utility invoices to the extent of funds available and Owner agrees that Broker shall have no responsibility whatsoever for nonpayment of or theft of any utility service by Tenant. Section 30. Binding Effect: All covenants and agreements contained in this Agreement shall be binding upon and inure to the benefit of the respective successors, heirs, estates, personal representatives or agents of the parties. Section 31. Attorney s Fees and Costs: In the event a controversy and/or any litigation arises out of this Agreement, the prevailing party shall be entitled to recover a reasonable attorney s fee and costs at the trial and appellate levels. The term controversy specifically includes a Florida Real Estate Commission (FREC) complaint filed against Broker by Owner(s) and if such complaint is not substantiated by FREC, Owner shall be liable to Broker for all related attorney s fees and costs incurred by Broker. Section 32. Governing Law and Venue: This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Florida and venue for any action in connection herewith shall lie exclusively in Brevard County, Florida. Section 33. Waiver of Trial by Jury: ALL PARTIES WAIVE TRIAL BY JURY IN CONNECTION WITH ANY ACTION OR PROCEEDING BROUGHT BY ANY PARTY TO THIS AGREEMENT AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR Page 12 of 15

13 CONCERNING THIS AGREEMENT. Section34. Severability: The invalidity or unenforceability of any particular provision of this Agreement shall not affect its other provisions and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. Section 35. Entire Agreement: This Agreement constitutes the entire Agreement between the parties hereto and supersedes any prior Agreements between the parties. This Agreement shall not be modified, amended or supplemented, or any rights herein waived, unless specifically agreed upon in writing by the parties hereto. Section 36. Additional terms and or agreements: IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the day and year first above written. Broker By: Printed Name: Date: Owner By: Printed Name: Date: Co-Owner (if any) By: Printed Name: Date: WE APPRECIATE THE OPPORTUNITY TO SERVE YOU AND LOOK FORWARD TO HELPING YOU ENJOY BEING A LANDLORD. HOW DID YOU FIND US? REFERRED BY: INTERNET: YELLOW PAGES: OTHER: THOMAS KAY REALTY, INC Sarno Road 119F, MELBOURNE, FLORIDA YOUR PROPERTY MANAGER, Ronald Gerson, MAY BE REACHED AT: Office: (321) , Fax: (321) , Website: Page 13 of 15

14 NAME: MAILING ADDRESS: City State Zip Code TELEPHONE(s) please provide all mediums to reach you: FAX: ADDRESS: UPON EXECUTION OF THIS AGREEMENT, PLEASE SUBMIT A CHECK IN THE AMOUNT OF $ FOR THE TOTAL DUE UNDER THIS AGREEMENT PAYABLE TO: THOMAS KAY REALTY, INC. AGREEMENT CAN BE FAXED TO (321) WORK SHALL NOT COMMENCE UNTIL FUNDS ABOVE ARE RECEIVED. Please complete the supplied W-9 Form. FEES DUE UPON EXECUTION OF THIS AGREEMENT: 1) ADMINISTRATIVE SET UP FEE $ Includes initial set up, placement on Brevard Multiple Listing Service (MLS) and Marketing of Property on any and all Web Sites with which Broker has cooperative agreements. 2) $ to set up emergency repair account. Page 14 of 15

15 EXHIBIT A LIST OF ACTUAL/POTENTIAL OWNER EXPENSES 1) Management Fee of $90.00 monthly or 10% of monthly rent, whichever is highest. 2) HOA Fee or Condo Association fee paid to Association if any. 3) Administrative set up fee of $50.00 as set forth in agreement. Only paid at initiation and execution of Property Management Agreement 4) $ to renew existing lease only. To be paid no more than once every 12 months. 5) 75% of first month s rent when leasing residence to new tenant 6) Miscellaneous fees as indicated on Pg. 4 Paragraph b, Pg. 6 Paragraphs a, Pg. 7 Paragraph h and Pg. 8 Paragraphs d. Page 15 of 15

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