Originally posted by
@Elenis Camargo:
@Christopher Cadenhead
If you take it line by line, it’s a bit easier to read. I’m not a lawyer but this is what I get from the terms. I hope this helps. You can contact the PM and confirm if you cancel the contract today, is XYZ true. They will have to tell you. Make sure you get a signed termination so they won’t come back later asking you to pay anything.
1. You have a one year contract with them that automatically renews. To stop it from automatically renewing you need to physically give them written notice 30 days before it renews.
“The term shall begin on the _____ day of _________, 2017 and will be in effect for one year and will automatically renew for successive year periods at the anniversary date so long as there has not been at least a thirty (30) day written notice prior to the next term given by either party to terminate.”
2. You may terminate, again has to be written and physically given to the PM, but you will have to keep paying the PM the monthly commission that you’re paying them now. You would pay them this until the tenants they put in the property leave or until their lease is up.
“Termination by LANDLORD is effective when actually physically received by BROKER. In the event this agreement is terminated by LANDLORD, the BROKER shall continue to receive the rental commission set forth below as long as the TENANT(S) placed on the property by BROKER shall remain in the unit until the end of the current lease.”
3. I am not sure I have paragraphs 15 through 18 to explain the next part.
“In the event this agreement is terminated by LANDLORD, the BROKER'S rights provided for in paragraph 15 THROUGH 18 shall survive such termination.”
4. If the PM has spent any money on maintenance, for example, and you haven’t paid them yet, then you would have to pay before cancelling the contract.
“All monies expended by BROKER shall be paid to BROKER prior to this cancellation and BROKER is authorized to withhold any sums owed to BROKER from monies held prior to the final disbursement to LANDLORD.”
5. If you don’t have a tenant in the property now or if it’s been less than 3 months since the PM placed a tenant, you owe the PM an extra $125.
“An additional cancellation fee of $125.00 will be charged to LANDLORD should LANDLORD terminate this agreement prior to TENANT(S) being placed and for a period of 3 months after TENANT(S) placement.”
6. And of course they always put a clause in there that allows them to cancel at any time within 30 days notice without any penalties to them.
“BROKER reserves the right to terminate this agreement with 30 days written notice to LANDLORD at any time, or, immediately with written or verbal notice if in the opinion of BROKER'S legal counsel, LANDLORD'S actions or inactions violate the terms of this management agreement or are illegal, improper, jeopardize the safety or welfare of any TENANT(S) or other persons, interfere with this management agreement and/or a foreclosure action is filed against the LANDLORD.”
