DISCLOSURES, SIGNATURES, AFFILIATED BUSINESS RELATIONSHIPS, AND AGENCY RELATIONSHIP
Innovative Marketing Techniques, Inc. a.k.a. IMT Inc., D.B.A. MySmartLease.Com, are listed as a California Corporation, licensed by the California Department of Real Estate # 01389068. IMT Inc., complies with all State and Federal housing and lending laws. IMT Inc., does not discriminate based on age, sex, religion, or nationality. MySmartLease.Com Herein referred to as MSL.Com. MySmartLease.Com., reserves the right to refuse business for any reason other then age, sex, religion, or nationality. If MSL.Com., deems the information provided in this application to be unreliable, false, or inconsistent, your account will be closed. MSL.Com., will not tolerate slum lords, bank fraud, credit fraud, investment scams, pre-foreclosure activity that takes advantage of distressed homeowners and or the elderly. If any activity is found to be occurring on the client's behalf the account will be closed and MSL.Com, will cooperate with law enforcement to the fullest extent of the law. Breach of Contract: MSL.Com., will assess a penalty for early termination of a 1 year or 6 month contract equal to three months property management fees or $600 per unit, whichever is greater based upon the initial percentage agreed on per the original contract. A $1500 per unit buyout will be assessed to any account which cancels within the initial (90) ninety days. A 30 day written notice is required to cancel any property management contract. MSL.Com, is an investment company with more than 95% of all new clients obtained to be considered seasoned real estate investors. MSL.Com, and or its staff may conclude in some cases that you as the client already understand the process and risk of acquiring, selling, borrowing, and managing real estate. In the event you are not in full understanding of a transaction, please speak directly with your Account Manager for further clarification. MySmartLease.Com., and employees are to be held harmless of but not limited to investment losses or legal issues that arise from your investments and or transactions related to your real estate or finances. MSL.Com., is only an advisory resource and you should always seek the advice from an attorney and accountant who have expertise in these areas. Officers, employees and agents of MSL.Com., may have a financial interested in IMT Inc., and may have interest In Century 21 Lois Lauer Realty, Lois Lauer Inc., Orange Tree Escrow Inc., and Proactive Landlord Inc., MySmartRealty, and DBA's thereof. By agreeing below you acknowledge the information in this application to be true and correct to the best of your knowledge. You have fully read the disclaimer and you agree with all the terms and conditions listed above.
This link pointing to CAR form AD revised 12/18 is hereby incorporated on the date of agreement as confirmed electronically below. Disclosure Regarding Agency Relationship
2. After the exclusive term expires, this Agreement shall be automatically renewed and extended for a like period of time, unless either the Owner or the Company shall, at least thirty (30) days prior to the expiration date hereof, give written notice of his desire to not renew. This contract may be terminated at any time by mutual agreement of the parties upon payment of all commissions, fees and expenses due hereunder to the company.
3. BROKER ACCEPTANCE: Broker accepts the appointment and grant, and agrees to:A. Use Diligence in the performance of this agreement.B. Furnish the services of it's firm for the rental, leasing, operation and management of the property.
4. AUTHORITY AND POWERS: Owner grants Broker the authority and power, at Owner's expense, to:
A. ADVERTISING: Display FOR RENT / LEASE and similar signs on the Property and advertise the availability of the Property, or any part thereof, for rental or lease.
B. RENTAL: LEASING: Initiate, sign, renew, modify, allow early access and rental incentives, 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 Broker for Owner shall not exceed 1 year or shall be month to month. Rent shall be at market rate determined by Broker and based upon other comparable properties within a 1 mile radius.
C. TENANCY TERMINATION: 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; MAINTENCE: Make, cause to be made, and/or supervise repairs, improvements, alterations and decorations to the Property; purchase, and pay bills for, services and supplies. Broker shall obtain prior approval of Owner for all expenditures over $400 for any one item. Prior approval shall not be required for monthly or recurring operating charges or, if in Broker's opinion, emergency expenditures over the maximum are needed to protect the Property or other properties 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 sub section 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 operation and maintenance of the Property. Broker may perform any of Broker’s duties through attorneys, agents, employees, or independent contractors and, except for persons working in Broker’s firm, shall not be responsible for their acts, omissions, defaults, negligence and/or costs of same. If at anytime the owners account goes into a negative balance, MySmartlease.Com will suspend all services including repairs, collections, and evictions.
G. EXPENSE PAYMENTS: Pay expenses and costs for the Property from Owner's funds held by Broker, 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, state with holdings, and insurance premiums.
H. SECURITY DEPOSITS: Receive security deposits from tenants, which deposits shall be placed in Brokers non-interest bearing trust account.
I. TRUST FUNDS: 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 Broker's personal accounts. Broker shall not be liable in the event of bankruptcy or failure of a financial institution.
J. RESERVES: Maintain a reserve in Broker's trust account of $400 per unit per Property.
K. DISBURSEMENTS: Disburse owner's funds, held in Broker's trust account, in the following order:
(1) Compensation due Broker under paragraph 6 of this contract.
(2) All other operating expenses, late fees, costs and disbursements payable from Owner’s funds held by Broker
(3) Reserves and security deposits held by Broker
(4) Balance to Owner
L. OWNER DISTRIBUTION: Remit funds, if any are available, monthly to Owner.
M. OWNER STATEMENTS: Render online monthly, statements of receipts, expenses, and charges for each Property.
N. BROKER FUNDS: Broker shall not advance Broker's own funds in connection with the Property or this Agreement.
O. LOCK BOX/KEY SAFE: Owner authorizes the use of a Lock Box or Key Safe to allow entry in to the Property and holds broker harmless for any liability arising from said use.
5. OWNER RESPONSIBILITIES: Owner shall:
A. Provide all documentation, records and disclosures as required by law or required by Broker to manage and operate the Property, and immediately notify Broker if Owner becomes aware of any changes in such documentation, records or disclosures, or any matter affecting the habitability of the Property.
B. Indemnify, defend and hold harmless Broker, and all persons in Broker's firm, regardless of responsibility, 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 Broker, or any person in Broker's firm, or the performance or exercise of any of the duties, powers or authorities granted by Broker.
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. Carry and pay for: (i) public and premises liability insurance in an amount of no less than 1,000,000; (ii) property damage and workers compensation insurance adequate to protect the interests of the Owner and Broker. Broker shall be, and Owner authorizes Broker to be, named as an additional insured party on Owner's policies.
E. 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 Broker's trust account available for such payment. Pay all interest on tenant security deposit if required by law or ordinance.
F. Immediately replace any funds required if there are insufficient funds in Broker's trust account to cover Owner's responsibilities.
G. Not allow property to go into default or foreclosure due to non-payment of mortgage at anytime while under contract with MySmartLease.Com. If property is in danger of foreclosure, owner is required to notify MysmartLease.Com immediately in writing to: PO Box 90717 San Bernardino, CA 92427. If MysmartLease.Com confirms property is in a foreclosure status, or a Notice of default has been filed, the management fees will immediately and retroactively from commencement of contract adjust to 15% per month based on collected rents, owner reserves will increase to the equivalent of two (2) month’s rental amount, and all other penalties associated with this contract will apply.
A. Owner agrees to pay Broker fees in the amounts indicated below for:
1) General Management = 8% per month for a 12 month exclusive contract minimum $99 per month (no charge during vacancies) (2) Renting or Leasing = $99 per vacancy as they occur (3) Evictions = $750 - $1250 on average and may vary from case to case (4) Overhead fee for outside vendors = 10% on all services (5) Admin Charges such as Standard Bill payment Services $5.00 or more (See MSL Owner Handbook for updated list) (6) Late Fees = 50% of collected fee. (7) Commission = 50% of one months rental amount is due as commission Or, if the MLS is USED, a 6% commission based upon the Lease Term is charged. (8) Tax witholdings or government administrative $20-$50
B. 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, advising on proposed new construction, debt collection, counseling, or attending Owner's Association meetings. If Owner requests Broker to perform services not included in this Agreement, A fee shall be agreed upon before these services are performed.
C. Broker may divide compensation, fees and charges due under this Agreement in any manner acceptable to Broker.
D. Owner further agrees that:
(1) Broker 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 late payments, any other services that are not in conflict with this agreement.(iii) additional advertising required to re- list home in the event tenant needs to break lease (iiii) any other service contracted between tenant and Broker that is deemed necessary according to the Broker in association with managing Property
(2) Broker may perform any of Broker's duties, and obtain necessary products and services, through affiliated companies or organizations in which Broker may own an interest. Broker may receive fees, commissions and/or profits from these affiliated companies or organizations. Broker has an ownership interest in the following affiliated companies or organizations: Century 21 Lois Lauer Realty, Proactive Landlords Inc., MySmartRealty, and IMT Inc. Broker shall disclose to Owner any other such relationships as they occur. Broker shall not receive any fees, commissions or profits from unaffiliated companies or organizations in the performance of this agreement, without prior disclosure to Owner.
(3) If owner is not a California Resident or a corporation or LLC qualified to conduct business in California, Owner authorizes Property Manager to withold and transmit to California Franchise Tax Board ("FTB") 7% of the GROSS payments to owner that exceed $1500 received by Property Manager, unless Owner completes and transmits to the property manager FTB form 589, nonresident reduced witholding request, FTB form 588, non resident witholding waiver, or FTB 590, witholding exemption certificate.
(4) If Owner is a nonresident alien individual, a foreign entity, or other non-U.S. person, (Foreign Investor) Owner authorizes Property Manager to withold and transmit to the Internal Revenue Service (IRS) 30% of the GROSS rental reciepts 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 Witholding on Income Effectively Connected With the Conduct of a Trade Business in the United States. A Foreign investor Owner will need to obtain a U.S. tax payer identification number and file a decllaration with the IRS regarding effectively connected income in order to complete the form given to the Property Manager. Further, the Foreign Investor Owner will be responsible for making any necessary estimated
7. TENANT ESTOPPEL AND SALE OF PROPERTY:
A. If property is placed for sale at any time while under management contract with MSL.Com., and Owner elects to use another broker to list property for sale other than Innovative Marketing Techniques Inc., or referred designee of said company, the remaining life of the contract up to one 1 year or $1500, whichever is greater is due immediately. Upon written request this charge will include the preparation and certification of the tenant estoppel agreements, assignment of funds to escrow, notify tenant help tenant with understanding relocation options if necessary, and transfer or close account and online management services as necessary.
B. If a tenant that MSL.Com., placed in the property purchases the property during the term of this contract or up to 24 months after the management contract has ended, Owner agrees to pay MySmartLease. Com.Com 6% of purchase price as commission. This commission will further compensate broker for all necessary broker services needed to facilitate the transaction. Owner agrees to sign a Residential Listing Agreement spelling out terms and conditions of the listing and an estimated net sheet will be provided upon request.
THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISIONS IS INITIALED. ARBITRATION OF DISPUTES:
B (1) Owner and Broker agree that any dispute or claim in law or equity arising between them regarding the obligation to pay compensation under this agreement, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraph 10B(2) below. The arbitrator shall be a retired judge or justice or an attorney with at least 5 years real estate law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California Law. 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 III of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. Interpretation of this agreement to arbitrate shall be governed by the Federal Arbitration Act.
(2) EXCLUSIONS FROM MEDIATION AND ARBITRATION:
The following matters are excluded from mediation and arbitration hereunder: (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 of the mediation and arbitration provisions.
"NOTICE: BY INITIALING IN THE SPACE BELOW 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 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." "WE HAVE 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."
11. EQUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state, and local anti-discrimination laws.
12. ATTORNEY FEES AND ESTOPPEL: In any action, proceeding or arbitration between Owner and Broker regarding the obligation to pay compensation under this Agreement, the prevailing Owner or Broker shall be entitled to reasonable attorney fees and costs from the non-prevailing Owner or Broker, except as provided in paragraph 10A. All parties including Owner and Management company may not retroactively audit and demand corrections beyond 1 year after services have been rendered.
13. INITIAL SET UP FEE & CANCELLATION POLICY: Once executed contract has been received by MSL.Com., any start up fees, advertising costs, and management fees will be applied and are non-refundable. A 30 day written notice is required to terminate this contract. You must mail the notice by certified mail to: P.O. Box 90717 San Bernardino, CA 92427. If contract is terminated prior to the agreed upon ending date or the required 30 day notice is not received by MSL.Com, an early termination fee equal to three (3) months Property management fees or $600 per unit, whichever is greater will be applied and assessed to your account. Any cancellation prior to the first ninety (90) days of this agreement is a minimum buyout of $1500 per unit plus advertising and sign installation. The early termination fee and the required 30 day notice applies to all contract terms including month to month contracts. Termination fees will be debited automatically from account, or credit card or check information on file. If you cancel first year under a coupon or other promotion the value of said promotion will be due and payable at termination.
14. 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.
15. If any part of this contract is found to be non binding or invalid it does not release or invalidate the remaining portions of the contract.
Owner warrants that Owner is the owner of the Property or has the authority to execute the contract. Owner acknowledges Owner has read, understands, accepts and has received a copy of this Agreement. Owner agrees to the use of Electronic Signature as formatted below.