Terms of Service
Last Updated: August 20, 2022
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These Terms of Service are a binding legal agreement (“Agreement”) between the property owner (hereinafter referred to as “Owner”), and SUPREME REAL ESTATE, INC (hereinafter referred to as “Agent” and/or “Supreme Real Estate”), located at 475 Washington Boulevard, Marina Del Rey, California 90292. In consideration of the mutual promises and covenants set forth below. Owner and Agent agree as follows:
1. EXCLUSIVE RIGHT TO LEASE. Owner hereby exclusively appoints Agent to lease and manage the real property (hereinafter referred to as the “Property”) unless this Agreement is terminated by either party by providing written notice at any time.
1.1 Agent shall have the exclusive right to market the Property. Owner authorizes Agent to facilitate pre-listing property preparation, such as cleaning, landscaping, and renovation with written approval. Agent may recommend preferred vendors and facilitate access to the Property in the Owner’s absence.
2. MARKETING. Agent is authorized to advertise the Property, or portions thereof, for lease, using applicable websites, including, but not limited to, Zillow, Trulia, Hotpads, flyers, or such other means as Agent may deem proper and advisable. Agent is authorized to place signs and a secure key box on the Property advertising the Property for rent, provided such signs and secure key box comply with applicable laws and HOA rules and regulations. Agent shall not be liable in the event the key box is broken or stolen. Agent is further authorized to submit information about the Property to a multiple listing service (MLS), and solicit the assistance of other real estate brokers in locating prospective tenants.
3. AGENT’S AUTHORITY TO NEGOTIATE LEASES & SCREEN TENANTS. All inquiries for any lease or renewals or agreements for the rental or operation of the Property shall be referred to Agent, and all negotiations connected therewith shall be conducted under the direction of Agent. Owner authorizes Agent to lease the property as follows:
3.1 Agent is authorized to locate prospective tenants, and Agent is authorized to screen all rental applications. Owner will be informed of each new applicant. Owner to make all decisions concerning rental applications based on meeting the criteria. Owner authorizes Agent to execute a lease agreement on Owner’s behalf.
3.2 Regardless of who performs the screening, the results are generally deemed reliable, but cannot be guaranteed. If a third-party independent contractor screening agency is used and the Owner relies on the results of the screening process, the Agent shall not be liable for any errors or omissions committed by this agency.
3.3 Owner authorizes Agent to change the terms of the existing lease agreement.
3.4 Owner agrees to notify the Agent of the intent to terminate the lease agreement with the tenant(s) by providing at least 90 days written notice.
4. AGENT NOT LIABLE FOR TENANT’S PERFORMANCE. Owner recognizes that there are risks associated with renting property. While screening tenants may prevent some problems, no screening process is one hundred percent (100%) effective. Agent does not warrant the performance of any tenant. Owner agrees that Agent shall not be liable for any damages related to or arising from any tenant’s occupancy of the Property, including, without limitation, the tenant’s failure to pay rent, or physical damage to the Property.
5. LIABILITY OF AGENT. Owner hereby agrees to hold Supreme Real Estate harmless and to defend Supreme Real Estate against, any and all claims, charges, debts, demands, and lawsuits. Owner agrees to pay Supreme Real Estate’s attorney’s fees related to Supreme Real Estate’s management of the herein-described property and any liability for injury on or about the property which may be suffered by any employee, tenant, or guest upon the property. Owner agrees to maintain sufficient and prudent all risks property insurance and that Supreme Real Estate shall be an additionally named insured. Owner shall provide a copy of such insurance policy to Supreme Real Estate for Supreme Real Estate’s records.
5.1 Indemnification Survives Termination. All representations and warranties of the Parties contained herein shall survive the termination of this Agreement. All provisions of this Agreement that require Owner to have insured or to defend, reimburse, or indemnify Supreme Real Estate shall survive any termination; and if Supreme Real Estate is or becomes involved in any proceeding or litigation by reason of having been Owner’s agent, such provisions shall apply as if this Agreement were still in effect.
6. RELATIONSHIP OF SUPREME REAL ESTATE TO OWNER. The relationship of the Parties to this Agreement shall be that of principal and agent, and all duties to be performed by Agent under this Agreement shall be for and on behalf of Owner, in Owner’s name, and for Owner’s account. In taking any action under this Agreement, Supreme Real Estate shall be acting only as agent for Owner, and nothing in this Agreement shall be construed as creating a partnership, joint venture, or any other relationship between the Parties to this Agreement except that of principal and agent, or as requiring Agent to bear any portion of losses arising out of or connected with the ownership or operation of the property. Nor shall Supreme Real Estate have the power to bind or obligate the other except as expressly set forth in this Agreement, except that Supreme Real Estate is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent of this Agreement.
7. MANAGEMENT FEE. Owner agrees to pay Agent a sum equal to $200.00 per month for a single-family home or condo, 5% of gross rents or $400 minimum for 2 – 15 units apartment homes, 4% of gross rents or $800 minimum for 16+ units apartment homes per month, starting on the date Agent’s management responsibilities under this Agreement begin while the Property is rented.
8. LEASING FEE. Owner agrees to pay Agent a sum equal to 50% of one month’s rent as a leasing fee (includes advertising the property, performing showings, screening tenants, lease preparation, and move-in inspection).
9. SECURITY & DAMAGE DEPOSITS. Owner shall collect, deposit and disburse the tenant’s security deposits in accordance with the terms of each tenant’s lease, and applicable state and local laws. Owner shall have the sole right to make the final determination as to damages versus normal wear and tear at the time of the termination of the tenant and Owner agrees to indemnify Agent against any claims made by the tenant regarding final disbursement. Managing repairs as part of the final tenancy may continue after the tenant has vacated, all terms under this Agreement shall apply during this time. Agent shall pay tenant interest upon such security deposits only if required by law.
10. COLLECTION OF RENT & ENFORCEMENT OF LEASE.
10.1 Rent collection. All rents are prorated to the first of each month and are due from the tenant on the first of each month. The rent shall be paid by the tenant directly to the Owner’s bank account. Owner shall use its best efforts in the collection of rent and other income. Agent cannot pursue legal action on Owner’s behalf without Owner’s cooperation. If legal action becomes necessary to enforce the terms of any lease, including, without limitation, to collect delinquent rent or evict a tenant, Owner agrees to either: (a) pursue legal action personally to enforce the lease, at Owner’s expense; or (b) execute a limited Power of Attorney form giving Agent authority to pursue legal action on Owner’s behalf. If Owner authorizes Agent to pursue legal action on Owner’s behalf, Owner agrees to reimburse Agent for any attorney fees and costs incurred in enforcing the lease.
10.2 Laundry income. Agent is not authorized to collect income from the laundry machines. All such arrangements shall be made by the Owner, and at Owner’s expense.
10.3 Late fees. Agent suggests not to charge late fees and therefore will not collect late fees. Late fees collection arrangements shall be made by the Owner, and at Owner’s expense.
11. MAINTENANCE, REPAIRS & IMPROVEMENTS.
11.1 Prior to leasing. Owner agrees that it is Owner’s responsibility to prepare the Property for occupancy by tenants prior to the commencement of the first lease. Owner is advised to carefully inspect the Property for any hazardous conditions and to complete any and all repairs necessary to make the Property safe for occupancy.
11.2 During the term of this Agreement. Owner agrees that it is Owner’s responsibility to perform ongoing, routine, and preventative maintenance to keep the Property safe for its intended use. Owner further agrees that Owner shall be solely responsible for the cost of any emergency repairs, maintenance, or improvements of the Property.
11.3 Home Warranty. If a residential property and Owner has a home warranty, it may be used for repairs only if it can be done in a timely manner in order to comply with all applicable California laws. If work cannot be done on time, Agent will use another vendor and Owner will be responsible for the cost. Owner agrees to contact the home warranty provider directly.
11.4 Agent’s Authority. At the Owner’s request, Agent will arrange for maintenance, repairs, and/or alterations to the premises to repair conditions brought to Agent’s attention by the Owner or the tenant. In the event that a tenant reports a minor problem, Agent may arrange for repairs necessary to correct the condition, provided that the cost of the repair does not exceed $300.00. In the event that a repair requested by the tenant exceeds $300.00, Agent shall obtain Owner’s consent before arranging the repair, unless the repair is deemed an emergency in Agent’s sole discretion. All repairs shall be arranged in the Owner’s name and at the Owner’s expense. Owner understands that some maintenance may be performed by firms/individuals affiliated with Agent. Because of this relationship, this referral may provide Supreme Real Estate and/or its owner(s) and/or employees with financial or other benefits. While we encourage you to use firms/individuals affiliated with Agent, you are not required to do so.
11.5 Owner agrees that all individuals or firms providing maintenance or services are doing so on behalf of Owner only, and not Agent. Owner agrees to indemnify Agent against liability to any third parties for obligations made by Agent pursuant to this paragraph. Owner further agrees that the Agent shall not be liable for any act or omission on the part of any third-party vendor hired by the Agent.
11.6 Utilities & Services. Agent is not authorized to make contracts for gas, electricity, fuel, water, trash collection, or other utilities and services. All such arrangements shall be made by the Owner, and at Owner’s expense.
11.7 Agent shall hire a licensed contractor to perform yearly visual inspections of the herein contemplated Property unless Owner opts out.
11.8 Agent shall perform move-in and move-out visual inspections of the herein contemplated Property. Owner understands and acknowledges that Agent is not a licensed inspector or contractor and may not find all the needed repairs. Owner agrees to indemnify and hold harmless the Agent against liability for such errors or omissions. Owner is advised to utilize the services of a certified inspector to inspect the Property. Owner shall be responsible for all associated fees incurred in the procurement of such professional inspection services.
12. HOMEOWNERS ASSOCIATION (HOA). The Owner agrees to be the main point of contact with the homeowners association (HOA) if a residential property has a homeowners association (HOA).
13. REIMBURSEMENT OF AGENT. Owner shall reimburse Agent promptly for any monies that Agent has advanced for the account of Owner. Nothing herein contained, however, shall be construed to obligate Agent to make any such advances. Owner agrees that Agent may charge for extraordinary services outside of normal management with said amount to be agreed upon by both Parties in writing prior to the commencement of said services.
14. LANDLORD/TENANT LAWS. Owner acknowledges that state, county, and/or local laws may apply to the leasing of the Property. Owner warrants that all actions of Owner with respect to the Property during the term of this Agreement shall be in compliance with applicable law. Owner understands that Agent may refuse to obey any instructions from Owner which are contrary to applicable law and that Owner’s violation of such laws shall be grounds for immediate termination of this Agreement by Agent.
14.1 Rent Stabilization Ordinance (Rent control) and Housing Authority (Section 8) properties. Owner is responsible to complete all required paperwork required by the local Rent Stabilization Ordinance (RSO) and/or Housing Authority (Section 8). Owner is responsible to pay all required fees by the local Rent Stabilization Ordinance (RSO) and/or Housing Authority (Section 8).
15. LEAD PAINT DISCLOSURE. If the Property was constructed prior to I978, Owner understands that federal law requires the Owner to provide all prospective tenants with a disclosure form discussing health hazards from lead-based paint. Owner agrees to complete the necessary disclosure form if required and to indemnify Agent from any and all penalties, or other liability arising from Owner’s violation of applicable law.
16. INDEMNIFICATION OF AGENT BY OWNER.
16.1 Acts or Non-Actions by Owner. Owner agrees to indemnify, defend and save the Agent harmless from all claims, suits, investigations, and litigation brought against Agent arising from actions or failures to act of Owner, regardless of the nature or character of the claim. Further, Owner represents and warrants that his or her actions and activities shall comply fully with all applicable state, federal and local laws, statutes, ordinances, regulations, and agreements.
16.2 Authorized Conduct. Owner agrees to indemnify, defend and save harmless from all claims, suits, investigations, and litigation arising from actions or failures to act by Agent which have been directed or authorized by Owner, regardless of whether such actions constitute a breach of contract, a tort, or are otherwise legally actionable.
16.3 Attorney’s Fees & Litigation Expenses. Owner agrees to pay on demand all reasonable expenses incurred by Agent in defending against any claim, suit, investigation, or litigation that is covered by the indemnity provisions of this Agreement. Agent’s defense expenses shall include, without limitation, actual attorney’s fees, litigation costs, judgments, and settlements. Agent shall be entitled to retain its own defense counsel and to control the course of the litigation, including the decision of whether to settle any claim and the number of such settlements.
16.4 Indemnities to Remain in Force. The foregoing indemnities shall remain in force beyond the termination of this Agreement.
17. SUCCESSORS & ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Supreme Real Estate and the heirs, administrators, successors, and assigns of the Owner. Notwithstanding the preceding sentence, Supreme Real Estate shall not assign its interest under this Agreement except in connection with the sale of all or any of the assets of its business. In the event of such sale, Supreme Real Estate shall be released from all liability under this Agreement upon the express assumption of such liability by its assignee.
18. INTERPRETATION & VENUE. This Agreement shall be interpreted in its entirety in accordance with the laws of the State of California. Any disputes arising from this Agreement shall be heard in the California Superior Court of the County in which the Property is located.
19. ATTORNEY’S FEES. Should any complaint be filed, or any claim be made arising out of the alleged breach of any of the provisions of this Agreement, or for the purpose of enforcing any of its provisions, each party shall bear its own costs, expenses, and attorneys fees in connection with the complaint. If an appeal is taken from the decision of the arbitrator or trial court, each party shall bear its own costs, expenses, and attorneys fees in connection with the appeal.
20. SURVIVAL. Termination of this Agreement shall not affect the rights or obligations of the Parties hereto which arise prior to the termination.
21. SEVERABILITY. Every provision of this Agreement is intended to be severable. In the event any term or provision is declared to be illegal or invalid for any reason whatsoever by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions, which terms and provisions shall remain binding and enforceable.
22. NON-WAIVER. Agent’s failure on an occasion to require strict compliance with any provision of this Agreement or to exercise any rights arising hereunder shall not be deemed a waiver of Agent’s right to subsequently enforce any such provision or to insist upon any such right without prior notice.
23. READ & UNDERSTOOD; THE ADVICE OF COUNSEL. Each of the Parties has read and fully understands this Agreement and has been advised to obtain independent legal counsel with respect to its terms. Each of the Parties further understands that this Agreement affects important legal rights, and consents hereto of his or her own will and judgment.
24. ENTIRE AGREEMENT. This Agreement includes addenda and documents incorporated by reference, including, but not limited to, all related addendums and future annual disclosure charges. The annual disclosure changes take place as a result of changes in the Federal, State, or City laws and economics that govern the property management industry in the State of California and constitute the sole agreement between the Parties relating to the subject matter hereof and supersedes all prior understandings, writings, proposals, advertisements, representations or communications, oral or written, of either party. The terms of this Agreement (other than the annual disclosure changes, which become effective upon notification) may not be changed or amended unless in writing by all Parties, including Supreme Real Estate or an agent of.