Property Management Agreement, Page 1 of 13 PROPERTY MANAGEMENT AGREEMENT ( PMA ) Jonathon Doe ("Owner"), and Feel Good Property Management, Inc. ("Broker") or ( FGPM ), agree as follows: 1. APPOINTMENT OF BROKER A. Owner hereby appoints and grants Broker (hereinafter Property Manager ) the exclusive right to rent, lease, operate, and manage the property listed for the period beginning 2017-01-20 and ending one year from the FGPM Property Management Agreement (hereinafter PMA ) signed date, or one year from the FGPM Residential Lease Agreement (hereinafter RLA ) start date, whichever is later. This time period is hereinafter called the "PMA Period". B. Any additional Property later added to this PMA with a PMA Addendum will terminate one year from either the additional Property s FGPM RLA start date or the Property Addendum signed date, whichever is later. 2. CANCELLATION OF CONTRACTS Termination of Agreement: Either party may terminate this Property Management Agreement ("Agreement") on at least 30 days written notice. After the exclusive term expires, this Agreement shall continue as a non-exclusive agreement that either party may terminate by giving at least 30 days written notice to the other. See Cancellation of Contract Fees section for more details. If FGPM executes PMA on a property without a prior inspection, FGPM reserves the right to cancel the PMA immediately (no 30 day notice) if serious issues are discovered during initial inspection. 3. PROPERTY MANAGER ACCEPTANCE Property Manager accepts the appointment and grant, and agrees to: A. Use due diligence in the performance of this Agreement. B. Furnish the services of its firm for the rental, leasing, operation and management of the Property. 4. AUTHORITY AND POWERS Owner grants Property Manager the authority and power, at Owner's expense, to: A. ADVERTISING: Display FOR RENT/LEASE and similar signs on the Property. Advertise the availability of the Property, or any part thereof, for rental or lease in the Multiple Listing Service and other online media. B. RENTAL; LEASING: Initiate, sign, renew, modify or cancel rental agreements and leases for the Property, or any part thereof; collect and give receipts for rents, other fees, charges and security deposits. Any lease or rental agreement executed by Property Manager for Owner shall not exceed 1 year(s). Unless Owner authorizes a lower amount, rent shall be: at market rate. Owner will select final rent amount and FGPM will provide guidance on the suggested amount. FGPM will not modify the rent amount without prior approval from Owner. C. NOTICES:
Property Management Agreement, Page 2 of 13 Sign and serve in Owner's name notices that are required or appropriate; commence and prosecute actions to evict tenants; recover possession of the Property in Owner's name; recover rents and other sums due; and, when expedient, settle, compromise and release claims, actions and suits and/or reinstate tenancies. D. REPAIR; MAINTENANCE: Make, cause to be made, and/or supervise repairs, improvements, alterations and decorations to the Property; purchase, and pay bills for, services and supplies. Owner agrees that state and local water use restrictions will supersede any obligation by Property Manager or any Tenant to water/maintain gardens, landscaping trees or shrubs. Property Manager shall obtain prior approval of Owner for all expenditures over $200. This approval is based on any one item. Prior approval shall not be required for monthly or recurring operating charges or, if in Property Manager's opinion, emergency expenditures over the maximum are needed to protect the Property or other property(ies) from damage, prevent injury to persons, avoid suspension of necessary services, avoid penalties or fines, or suspension of services to tenants required by a lease or rental agreement or by law, including, but not limited to, maintaining the Property in a condition fit for human habitation as required by Civil Code 1941 and 1941.1 and Health and Safety Code 17920.3 and 17920.10. E. REPORTS, NOTICES AND SIGNS: Comply with federal, state or local law requiring delivery of reports or notices and/or posting of signs or notices. F. CONTRACTS; SERVICES: Contract, hire, supervise and/or discharge firms and persons, including utilities, required for the operation and maintenance of the Property. Property Manager may perform any of Property Manager's duties through attorneys, agents, employees, or independent contractors and, except for persons working in Property Manager's firm, shall not be responsible for their acts, omissions, defaults, negligence and/or costs of same. G. EXPENSE PAYMENTS: Pay expenses and costs for the Property from Owner's funds held by Property Manager, unless otherwise directed by Owner. Expenses and costs may include, but are not limited to, property management compensation, fees and charges, expenses for goods and services, property taxes and other taxes, Owner's Association dues, assessments, loan payments and insurance premiums. The following bill payments are included in the standard PM fees: - Non-repeating maintenance items, such as a leak, electrical work, etc. - Monthly gardener bills if you use FGPM's preferred vendors. Please note that paying for recurring bills for other services such as pools, pest control, HOAs, etc. is not included in the standard PM fee. If this service is desired, FGPM will consider payment of these bills for an additional 2% per month. Note: FGPM does not offer the payment of mortgages, insurance, and/or property taxes. H. SECURITY DEPOSITS: Receive security deposits from tenants, which deposits shall be held in: broker's trust account. If held in broker's trust account, Owner authorized FGPM to pay from Owner's funds all interest on tenants security deposits if required by local law or ordinance. Owner shall be responsible to tenants for return of security deposits and all interest due on security deposits held by Owner. I. TRUST FUNDS:
Property Management Agreement, Page 3 of 13 Deposit all receipts collected for Owner, less any sums properly deducted or disbursed, in a financial institution whose deposits are insured by an agency of the United States government. The funds shall be held in a trust account separate from Property Manager's personal accounts. Property Manager shall not be liable in event of bankruptcy or failure of a financial institution. J. RESERVES: Maintain a reserve in Property Manager's trust account of $500. K. DISBURSEMENTS: Disburse Owner's funds held in Property Manager's trust account in the following order: 1) Compensation due Property Manager under paragraph 8. 2) All other operating expenses, costs and disbursements payable from Owner's funds held by Property Manager. (3) Reserves and security deposits held by Property Manager. (4) Balance to Owner. L. OWNER DISTRIBUTION: Remit funds, if any are available, on the 10th of each month to Owner. M. OWNER STATEMENTS: Render monthly (if an owner disbursement is being made that month),and year end statements of receipts, expenses and charges for each Property. N. PROPERTY MANAGER FUNDS: Property Manager shall not advance Property Manager's own funds in connection with the Property or this Agreement. O. KEYSAFE/LOCKBOX: Owner authorizes the use of a keysafe/lockbox to allow entry into the Property and agrees to sign a keysafe/ lockbox addendum (C.A.R., Form KLA). OWNER RESPONSIBILITIES: Owner shall: A. Provide all documentation, records and disclosures as required by law or required by Property Manager to manage and operate the Property, and immediately notify Property Manager if Owner becomes aware of any change in such documentation, records or disclosures, or any matter affecting the habitability of the Property. If the property is in a HOA community, Owner will obtain a.pdf copy of rules and regulations and HOA tenant documents. Owner will upload these files to dropbox through our instructions before we list the property and before we conduct showings. Owner will provide written confirmation of the property listing via email before FGPM conducts any property showings. B. Indemnify, defend and hold harmless Property Manager, and all persons in Property Manager's firm, as permitted by law, from all costs, expenses, suits, liabilities, damages, attorney fees and claims of every type, including but not limited to those arising out of injury or death of any person, or damage to any real or personal property of any person, including Owner, for: (i) any repairs performed by Owner or by others hired directly by Owner; or (ii) those relating to the management, leasing, rental, security deposits, or operation of the Property by Property Manager, or any person in Property Manager's firm, or the performance or exercise of any of the duties, powers or authorities granted to Property Manager.
Property Management Agreement, Page 4 of 13 C. Maintain the Property in a condition fit for human habitation as required by Civil Code 1941 and 1941.1 and Health and Safety Code 17920.3 and 17920.10 and other applicable law. D. Pay all interest on tenants' security deposits if required by local law or ordinance. E. Carry and pay for: (i) public and premises liability insurance in an amount of no less than $500,000; and (ii) Owners are put on notice that if they schedule or authorize any work on the Property from Vendors that FGPM has not specifically approved in writing, Owners are required to verify the Vendor s general and workers comp insurance, and Owners will completely be responsible for any and all claims, lawsuits, or other costs that arise from using these Vendors. (iii) Property Manager shall be, and Owner authorizes Property Manager to be, named as an additional insured or additional interest party on Owner's policies. F. Pay any late charges, penalties and/or interest imposed by lenders or other parties for failure to make payment to those parties, if the failure is due to insufficient funds in Property Manager's trust account available for such payment. G. Immediately replace any funds required if there are insufficient funds in Property Manager's trust account to cover Owner's responsibilities. H. Owner will review the online listing for accuracy and give feedback to FGPM on listing accuracy. After review, Owner will approve the listing. Owner agrees to uphold terms presented in the listing. I. For Owner occupied properties; the Owner shall provide and approve a date that the property is available for move in. The Owner agrees to have the property completely vacant and to transfer possession to FGPM at least 4 business days (Monday Friday) prior to the agreed upon move in date. This allows time for FGPM to inspect the unit, clean it, make repairs, perform inspections, etc. as needed. Owner understands that setting and committing to this date is critical to the rental process because FGPM uses this date to market the property, collect security deposits, and sign leases. J. Owners review and approval of applicants: Owner agrees to comply with all Fair Housing Laws in terms of application approval. Owner agrees that FGPM will process and approve applicants based on these qualifications and FGPM will complete this process internally. If the Owner requires final Owner approval on any applicants, the request must be submitted to FGPM in writing via an email from Owner to both of the following email address: records@feelgoodpm.com and info@feelgoodpm.com. This request must be submitted within 3 days of the Owner signing the PMA. Should owner not agree on the approval of a tenant(s) even after FGPM has granted full tenant approval, Owner must supply a valid and legal reason for the denial and pay FGPM $80 per applicant over the age of 18. Note there may be multiple applicants per group application. 5. OWNER REPRESENTATIONS Owner represents that, unless otherwise specified in writing, Owner is unaware of: (i) any recorded Notice of Default affecting the Property; (ii) any delinquent amounts due under any loan secured by, or other obligation affecting, the Property; (iii) any bankruptcy, insolvency or similar proceeding affecting the Property; (iv) any litigation, arbitration, administrative action, government investigation, or other pending or threatened action that does or may affect the Property or Owners ability to transfer it; and (v) any current, pending or proposed special assessments affecting the Property. Owner shall promptly notify Property Manager in writing if Owner becomes aware of any of these items during the term of this Agreement.
Property Management Agreement, Page 5 of 13 6. TAX WITHHOLDING A. If Owner is not a California Resident or a corporation or LLC qualified to conduct business in California, Owner authorizes Property Manager to withhold and transmit to California Franchise Tax Board ("FTB") 7% of the GROSS payments to Owner that exceed $1,500 received by Property Manager, unless Owner completes and transmits to Property Manager FTB form 589, nonresident reduced withholding request, FTB form 588, nonresident withholding waiver, or FTB form 590, withholding exemption certificate. B. If Owner is a nonresident alien individual, a foreign entity, or other non-u.s. person, (Foreign Investor) Owner authorizes Property Manager to withhold and transmit to the Internal Revenue Service (IRS) 30% of the GROSS rental receipts unless Owner elects to treat rental income as effectively connected income by submitting to Property Manager a fully completed IRS form W-8ECI, Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade of Business in the United States. A Foreign investor Owner will need to obtain a U.S. tax payer identification number and file a declaration with the IRS regarding effectively connected income in order to complete the form given to Property Manager. Further, the Foreign Investor Owner will be responsible for making any necessary estimated tax payments. 7. DISCLOSURE A. LEAD-BASED PAINT The property was constructed in the year: 1988. Owner has read and understands the lead based paint addendum that is attached to the end of this PMA. Owner has no knowledge of lead-based paint or lead-based paint hazards in the housing, AND Owner has no reports or records pertaining to lead-based paint or lead-based paint hazards in the housing, except the following except: none If the Owner has any reports or records pertaining the lead-based paint or lead-based paint hazards, Owner shall provide to Property Manager in writing within 1 days of signing PMA. B. POOL/SPA DRAIN Owner verifies that any pool or spa on the property does have an approved anti-entrapment drain cover, device or system. C. ASBESTOS AND OTHER HAZARDOUS MATERIALS Owner has no reports or knowledge of asbestos or mold on the property in the past. If Owner does have knowledge of asbestos or mold that was at the property in the past, Owner will notify FGPM in writing to info@feelgoodpm.com and admin@feelgoodpm.com within 1 days of signing PMA. Owner acknowledges that homes built before 1984 may have asbestos in the building materials. Owner agrees to fully test and pay for asbestos and other hazardous material testing before conducting any work on the property that may disturb or expose the asbestos or other hazardous material. 8. COMPENSATION A. Monthly Compensaiton: Owner agrees to pay Property Manager compensation at 7% of monthly rent collected with a minimum of $125 fee
Property Management Agreement, Page 6 of 13 monthly. Total compensation to FGPM per property per PMA shall equal 12 months at 7% (or the minimum compensation listed above). FGPM will collect their monthly compensation through bank transfer or check to FGPM s operating account. B. Preparing property for Renting, Renting or Leasing Fee: i. A "listing process" is defined as the work needed to rent a home including: photos, written content, online advertisement, showing the property, processing applicaitons, inspecting the property, and executing a lease. One listing process is included for free with each 12 month PMA per Property. Usually only one listing process is required per 12 month PMA per property. This initial listing process is included for free in the 12 month PMA fees. Please note the Free Included Listing Process applies to individual Properties. Therefore, if the owner has 2 properties with FGPM, 2 marketing or leasing processes are included for free per 12 month period. One leasing process is included per property. ii. Re-listing: If FGPM has already initiated and/or finished one listing process for the Owner during the 12 month PMA period, and then then Owner requests an additional listing process or requests termination of listing process or requests to have the listing taken off market or cancels a listing prior to the 12 month PMA period, then Owner agrees to pay $800 to FGPM for each additional listing prior to the additional listing process initiation by FGPM. If tenant breaches lease, the RLA requires the tenant to pay the $800 re-lease fee to FGPM (not the Owner). Listed below are some example situations. Example 1: Owner hires FGPM, Property is vacant, FGPM does leasing process. 12 months after lease start date, Tenants vacate. If Owner renews PMA with FGPM for another 12 month period, FGPM will then do another leasing process for free (included in the new 12 month PMA). Example 2: New Owner hires FGPM and Property is already occupied with Tenants. 2 months later the tenants vacate. FGPM now does a leasing process to find new tenants. This listing process is included in the 12 month PMA monthly fee so no other funds are due to FGPM. Owner acknowledges that with the new leasing process the PMA end date is pushed back to one year after the new lease start date AND that Owner agrees to pay FGPM 12 monthly payments of compensation from the new lease start date. Example 3: Owner hires FGPM, Property is vacant, FGPM does leasing process and places Tenants. Owner requests a 6 month lease. After 6 months, Tenants vacate, and Owner wants FGPM to find new Tenants. Owners will pay FGPM $800 to Re-lease and find new tenants. Owners will pay FGPM within 7 days of initial lease end date. Example 4: Owner hires FGPM, FGPM initiates the listing process and the "owner cancels the listing process" during the listing process. Then owner then asks to re-instate or restart or continue the listing process. Owners will pay FGPM $800 to start the listing process again. Owners will pay FGPM prior to the additional or restarted listing process is initiated by FGPM. The term "owner cancels the listing process" means the Owner requesting a pause to the listing process or Owner requesting removing the listing from the market or any other communication from the Owner that disrupts, delays the listing process.
Property Management Agreement, Page 7 of 13 C. Evictions Guarantee: FGPM will pay up to $1,000 for attorney fees for an eviction if it occurs under the following conditions: 1. FGPM originally approved and placed the Tenant (Applicant). 2. FGPM did a full tenant approval upon screening the applicant. If FGPM does not fully approve the Tenants due to minor application issues this is called a "conditional approval". If FGPM classifies an applicant as a "conditional approval" but Owner still wants to lease to the Tenants, FGPM can lease to the owner approved Tenants, but the Eviction Guarantee will NOT apply. 3. FGPM is still managing the property at time of Eviction and there were no lapses in FGPM Property Management Services during the tenancy period. Listed below are some example situations. Example 1: if FGPM approved and placed a Tenant, and FGPM continued to manage the property until the Tenant needed to be evicted five months later, the Eviction Guarantee would apply. Example 2: if FGPM approved and placed a Tenant, but the owner cancelled the Property Management service after 12 months, then re-initiate Property management service at 15 months, then the Tenant needed to be evicted at 17 months, the Eviction Guarantee would NOT apply due to the 2 month lapse when FGPM did not manage property. Example 3: if FGPM screened the tenant and FGPM did not give full approval but Owner wanted to rent to the Tenants and asked FGPM to create a lease, the Eviction guarantee would NOT apply because FGPM does not fully approve these tenants. D. Managing Property during extended periods of vacancy: No fees paid. E. An overhead and service fee added to the cost of all work performed by, or at the direction of, Property Manager: - Typically FGPM does not charge additional monies for work completed by outside self sufficient vendors. If there is a very large remodel that Owner needs FGPM to manage, FGPM may request payment for this and must receive approval in writing from Owner prior to conducting the work. - FGPM may charge additional monies for work completed by outside vendors if FGPM pays for a portion of an outside vendors costs of doing business, or if FGPM helps the vendor with scheduling, organizing, billing, or invoicing. FGPM will only do this if the vendor's fee + FGPM's fee is less than or equal to the fee that is, on average, charged for similiar services. F. Late Fees: Late fees will be split 50/50 between Owner and FGPM. G. This Agreement does not include providing on-site management services, property sales, refinancing, preparing Property for sale or refinancing, modernization, fire or major damage restoration, rehabilitation, obtaining income tax, accounting or legal advice, representation before public agencies, court representation, advising on proposed new
Property Management Agreement, Page 8 of 13 construction, debt collection, counseling, making copies of keys, installing smoke detectors / other misc. property items, or attending Owner's Association meetings. If Owner requests Property Manager to perform services not included in this Agreement, a fee shall be agreed upon before these services are performed. H. Property Manager may divide compensation, fees and charges due under this Agreement in any manner acceptable to Property Manager. I. Owner further agrees that: Property Manager may receive and keep fees and charges from tenants for: (i) requesting an assignment of lease or sublease of the Property; (ii) processing credit applications; (iii) any returned checks and/or (if checked) late payments; and (iv) any other services that are not in conflict with this Agreement. Property Manager may perform any of Property Manager's duties, and obtain necessary products and services, through affiliated companies or organizations in which Property Manager may own an interest. Property Manager may receive fees, commissions and/or profits from these affiliated companies or organizations. Property Manager has an ownership interest in the following affiliated companies or organizations: none. Property Manager shall disclose to Owner any other such relationships as they occur. Property Manager shall not receive any fees, commissions or profits from unaffiliated companies or organizations in the performance of this Agreement, without prior disclosure to Owner. 9. AGENCY RELATIONSHIPS Property Manager may act, and Owner hereby consents to Property Manager acting, as dual agent for Owner and tenant(s) in any resulting transaction. If the Property includes residential property with one-to-four dwelling units and this Agreement permits a tenancy in excess of one year, Owner acknowledges receipt of the Disclosure Regarding Agency Relationships (C.A.R. Form AD). Owner understands that Property Manager may have or obtain property management agreements on other property, and that potential tenants may consider, make offers on, or lease through Property Manager, property the same as or similar to Owner's Property. Owner consents to Property Manager's representation of other owners' properties before, during and after the expiration of this Agreement. 10. NOTICES Any written notice to Owner or Property Manager required under this Agreement shall be served by sending such notice by first class mail or by email or other agreed-to delivery method to that party at the address below, or at any different address the parties may later designate for this purpose. Notice shall be deemed received three (3) calendar days after deposit into the United States mail OR upon email receipt. 11. DISPUTE RESOLUTION A. MEDIATION: Owner and Property Manager agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES
Property Management Agreement, Page 9 of 13 WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 11C. B. ARBITRATION OF DISPUTES: Owner and Property Manager agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience, unless the parties mutually agree to a different arbitrator. The parties shall have the right to discovery in accordance with Code of Civil Procedure 1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement are specified in paragraph 11C. NOTICE: BY SIGNING THIS DOCUMENT YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. OWNER HAS READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: The following matters shall be excluded from mediation and arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code 2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions. 12. EQUAL HOUSING OPPORTUNITY The Property is offered in compliance with federal, state and local anti-discrimination laws. 13. ATTORNEY FEES In any action, proceeding or arbitration between Owner and Property Manager regarding the obligation to pay compensation under this Agreement, the prevailing Owner or Property Manager shall be entitled to reasonable attorney fees and costs from the non-prevailing Owner or Property Manager, except as provided in paragraph 11A.
Property Management Agreement, Page 10 of 13 14. ADDITIONAL TERMS Owner agrees to pay for the cost of compliance of smoke detectors, carbon detectors, water heater bracing, keys, and/or habitability items needing repair prior to, and during tenancy. Owner acknowledges that FGPM may receive benefits from spending money on behalf of owners such as credit card rewards. FGPM may benefit from holding trust funds in our financial institution, such as payment of fees / invoices from the financial institution and/or other FGPM vendors. 15. CANCELLATION OF CONTRACT FEES A. CANCELLATION OF CONTRACT Termination of Agreement: Either party may terminate this Property Management Agreement ("Agreement") on at least 30 days written notice. After the exclusive term expires, this Agreement shall continue as a non-exclusive agreement that either party may terminate by giving at least 30 days written notice to the other. CANCELLATION FEES IF AN OWNER CANCELS: A. Owner Acknowledgement: Owner acknowledges that FGPM does not charge any up front fees but FGPM does a significant amount of work up front before receiving compensation from Owner. Cancellation fees have been broken down into 2 categories: 1. Cancellation of PMA before RLA is signed. 2. Cancellation of PMA after RLA is signed. Only fees from one category will apply at the time of cancellation, therefore Owner will only pay fees based on one of the Categories, not both. Owner will pay all of the fees in this section within 15 days of cancellation, or within 45 days of original PMA signing date, whichever is sooner. Owner agrees to the following terms for cancellation of contract and fees assessed: B. Cancellation of PMA before RLA is signed: Owner acknowledges that cancelling a PMA contract during a listing / leasing process can create big problems for tenant prospects and FGPM. FGPM is executing property management services on the understanding that Owner will have the home ready for occupancy on the agreed available move-in date. The available move-in date will be determined in the future and Owner will approve the date through email confirmation before the FGPM begins the listing process. Owner acknowledges that if Owner cancels during the listing / leasing process it also affects Prospects (perspective Tenants) who have applied. If application(s) have been submitted by Prospects before Owner cancels the contract, Owner will pay FGPM $40 per application to reimburse all Prospect Application Fees.
Property Management Agreement, Page 11 of 13 FGPM Individual item Fees: If Owner cancels the PMA during the listing / leasing process, Owner agrees to pay FGPM on a "Individual Item" basis for the work FGPM has completed. Individual Item Fees: $100 for listing photos. $250 for online listing. $75 per showing. $100 for each application FGPM processes. $100 for property inspection. $100 for full inspection photos. Total cost of Individual Items due to FGPM not to exceed $1,500. C. Cancellation of PMA or RLA after RLA has been signed: Owner agrees that if Owner cancels PMA after a RLA has been signed by Tenants but Tenants have not taken possession yet, this jeopardizes FGPM and Tenants and places all parties in a very bad situation. The FGPM reputation is threatened and liability is created because FGPM cannot fulfill the RLA and it amy leave Tenants without a Property. If Owner cancels a contract when a RLA has been signed by Tenants, but Tenants have not taken possession yet, Owner will pay FGPM to reimburse Tenants the total sum of $500. If legal action is created from this cancellation, Owner agrees to pay for any and all (past, present, and future) additional fees from any judgements, legal fees, or any other costs associated with the cancellation. Owner agrees to pay these fees or charges associated with the cancellation for the Owner and for FGPM. If RLA has been signed and Owner cancels the PMA and/or the RLA before the end of the PMA Period, Owner agrees to pay the remainder of all of the monthly Compensation payments for the PMA period that have not yet been made. The entire remainder of the Compensation due will be paid by Owner to FGPM in one lump sum. FGPM is an Agent of the Property Owners, but FGPM also follows Fair Housing Laws and Industry Standards in dealing with Prospects and Tenants. Owner should only sign the PMA if they are comfortable with selecting a firm move-in date for Tenants. OTHER CANCELLATION / NON-RENEWEL TERMS: If a Property has Tenants in place and Tenants want to re-new a new lease, FGPM will not execute a new lease until after a new PMA contract is executed. Each lease re-newel and each new lease done by FGPM requires a new PMA before the leasing / listing process is initiated. 16. LEAD-BASED PAINT ADDENDUM LEAD WARNING STATEMENT Residential real property on which a residential dwelling was built prior to 1978 may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligent quotient, behavioral problems and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-
Property Management Agreement, Page 12 of 13 based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. LEAD WARNING STATEMENT (LEASE OR RENTAL) Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive federally approved pamphlet on lead poisoning prevention. EPA'S LEAD-BASED PAINT RENOVATION, REPAIR AND PAINTING RULE: The new rule requires that contractors and maintenance professionals working in pre-1978 housing, child care facilities, and schools with lead-based paint be certified; that their employees be trained; and that they follow protective work practice standards. The rule applies to renovation, repair, or painting activities affecting more than six square feet of lead-based paint in a room or more than 20 square feet of lead-based paint on the exterior. Enforcement of the rule begins October 1, 2010. See the EPA website at www.epa.gov/lead for more information. FGPM encourages owner to review the pamphlet Protect Your Family From Lead In Your Home and Homeowner s guide to earthquake safety. If tenant needs to find a copy of the document, tenant can Google the quoted phrases above or try to find the documents on FeelGoodPM.com as follows: http://feelgoodpm.com/earthquake-safety-home-guide/ http://feelgoodpm.com/protect-family-from-lead-in-home/ If Owner has questions or needs another copy of these documents, it is the Owners responsibility to immediately contact FGPM in writing through email. 17. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES Time is of the essence. All understandings between the parties are incorporated in this Agreement. Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed except in writing. This Agreement and any supplement, addendum or modification, including any copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing. Owner warrants that Owner is the owner of the Property or has the authority to execute this Agreement. Owner acknowledges Owner has read, understands, accepts and has received a copy of the Agreement. OWNER: Owners name on title: Jonathon Doe Signors name: John Doe Address: 123 Main St, Carlsbad, CA 92010, USA Email: happyowner9323923@gmail.com Phone: 555.5555
Property Management Agreement, Page 13 of 13 PROPERTY MANAGER: Feel Good Property Management, Inc. Address: 2888 Loker Ave. E #111G, Carlsbad Ca, 92010 Phone: (see website feelgoodpm.com for office line). Email: admin@feelgoodpm.com 18. OWNER AND FGPM ADDITIONAL NEGOTIATIONS None.. 19. FINAL AGREEMENT AND SIGNATURES OWNER AND PROPERTY MANAGER AGREE TO ALL OF THE ABOVE AGREEMENT AND ADDENDUM.