FACTS

Property Managers - Sacramento

We have reproduced Mr. Matthew D. Scott´s original letter to us in red. Our answers are in black. We "slightly adjusted" a few words in the quoted emails - to not infringe on EM´s  or Laweyer Scott´s intellectual property.

December 6, 2012
Ms. xxxxxxxx
xxxxxxxxxxx
xxxxxxxxxxx
SPAIN Via email to: xxxx@xxxxxxxx.com
Re: xxxxxxxxxxxx – Rental Property
Formerly under management by Eagle Management

Dear Ms. xxxxx:
My client, by and through its agents, has accepted your contract termination due to a breakdown in communication and your lack of satisfaction with its services despite my client’s great efforts to resolve the dispute. What follows is an itemization of charges you have sought to be reimbursed by my client, along with
my client’s response to each.

We are amazed at your client´s audacity - and that you, an Attorney-at-Law, would write a similar document - based on a tale or what is legally referred to as - hearsay. 

We are confident that any qualified Mediator, Arbitrator, Judge, Department of Real Estate Commissioner - even a Jury or general public would rule against your client based on the following clear and simple - FACTS.


1. We entrusted our property to your client by signing their contract September 6, 2012.
2. The contract was never returned to us signed by your client.
3. Agreements are not limited to one contract - they may have annexes, etc. made through other written means, even verbal agreements constitute a contract.
4. Your client breached multiple clauses in their own contract by October 15..
5. We sent a Notice of Termination - due to these Breach/es of Contract.
6. Your client also broke and is breaking many laws - including, however, not limited to this small selection:

CALIFORNIA BUSINESS & PROFESSIONAL CODE
10176(a) Making any substantial misrepresentation
10176(b) Making false promise
10176(c) Continued flagrant course of misrepresentations through salespersons
10176(d) Failure to disclose dual agency
10177(c) False advertisement >>

Eagle Management Website - Promises to Owners

10177(d) Violation of real estate law or regulations10177(g) Negligence or incompetence in performing licensed acts
10177(h) Failure to supervise salespersons or licensed acts of corporation


COMMISSIONER’S REGULATIONS:
2832 Failure to comply with trust fund handling provisions
2832(a) Failure of broker to place trust funds into hands of owner, into neutral escrow depository or trust fund account within three business days of receipt

Please read, Mr. Scott - Attorney at Law - about Breaches - and Laws:
http://www.dre.ca.gov/files/pdf/DisciplinaryActionsKey.pdf
http://www.dre.ca.gov/files/pdf/relaw/relaw.pdf
http://www.dre.ca.gov/files/pdf/forms/re519.pdf
http://www.nolo.com/legal-encyclopedia/california-law-tenant-application-screening-fees-credit-reports.html



We emailed your client a Termination of Contract Notice due to a FUNDAMENTAL BREACH.
  • Your client failed and then refused to remit funds by the date established in our contract with him. (Funds due to be in our account October 15th were finally remitted November 14th 2012). Clause 3.L and 3.M. (above image)
WEBSITE - SCREEN SHOT OCTOBER 30, 2012
  • He failed to verify tenant applications. B & P 10177(c) False advertisement (above image)
  • We did verify applicants and found that they had not told the truth on their rental application - about previous landlords - and their employment information.
  • We asked your client for more information.
  • Your client refused to send proof of verification ( consumer / credit reports, criminal checks, previous evictions ... )

 EAGLE MANAGEMENT WEBSITE ADVERTISES:
-Create comprehensive lease agreements protecting owners from a wide range of common problems.
-Collect tenant deposit.
-Conduct pre-occupancy inspection.

  • He executed a landlord-tenant contract with major legal errors and important omissions,
  • All contracts written and executed to date - by your client and his agent are illegal by DRE Regulations.
  • Your client never signed any of the contracts he has executed.
  • Yes - he did collect tenant deposit - just somehow forgot to remit to it us. 
  • Oops - oh well.
  • His agent told the tenants to "just fill out the move-in sheet and bring it in whenever you can". We spent funds for an inspection - and now know that there are four people instead of two living in the residence - and now have discrepancies with the move in condition. Oops - oh well.


SCREENING OF TENANTS :
-We personally meet with each tenant at the property.
-Conduct credit checks.
-Confirm income and employment records.
-Verify current and past rental/ownership history.
-Quick turnaround of applications (less than 72 hours).

RENTAL AGREEMENT / PRE-OCCUPANCY :
-Create comprehensive lease agreements protecting owners from a wide range of common problems.
-Collect tenant deposit.
-Conduct pre-occupancy inspection.
-Full service reports prior to tenant occupancy and move out, with photos, to ensure your property has been maintained as you would like.

This is the Pre-Occupancy inspection - with full service reports !!

A BIT MORE DETAIL ?
  • The first contract written (Agent-Tenant) was alarmingly erroneous:
Sole Occupants & Immediate Family

We repeatedly wrote the tenants were to pay the gardener
The house has no gas. They forgot SMUD.
  • omitted important points previously accorded and written - - (our Gardener is to be paid by tenant $40 a month, monthly HVAC changes, exact utility costs with payment schedule ...)

  • accepted $183 as a move-in condition (not one month´s rent + one month´s deposit - as is the norm), 
  • Dated the contract October 8th - before any funds were collected.
  • allowing "immediate family" with no limits or definitions:
----- Original Message -----
From: Dan
Sent: Monday, October 22, 2012 10:35 PM
Subject: RE: xxx, Elk Grove, CA 95624

Hi xxx,
Immediate family is considered children under the age of 18 (although both tenants have none). ...

  • Why in the world put in - what they do not have ?
  • Please read, Mr. Lawyer - about - 
  • Health and Safety Code Section 17922. See 1997 Uniform Housing Code Section 503(b) (every residential rental unit must have at least one room that is at least 120 square feet; other rooms used for living must be at least 70 square feet; and any room used for sleeping must increase the minimum floor area by 50 square feet for each occupant in excess of two). Different rules apply in the case of “efficiency units.” (See 1997 Uniform Housing Code Section 503(b), Health and Safety Code Section 17958.1.)
  • 26 Brown, Warner and Portman, The California Landlord’s Law Book, Vol. I: Rights & Responsibilities, pages 166-167 (NOLO Press 2011).
  • This reference suggests that a landlord’s policy that is more restrictive than two occupants per bedroom plus one additional occupant is ...

  • Email communications:
  • October 25, 2012 - Request for Funds Due and Disclosure of Pertinent Financial Information: At this time, I will need by 3:00 p.m PST at the latest.:
    • the tenants deposit of $950.00 (NINE HUNDRED AND FIFTY DOLLARS) transferred to us,
    • all information you have collected - proving that the tenants are financially qualified to pay the rent, utilities, gardener etc. for the length of the lease you issue,
    • the final copy of the new tenants lease.

    Should you continue to disregard my requests - we will follow this note with a BREACH OF CONTRACT NOTICE and proceed.



  • October 26, 2012 6.51 AM PST - FUNDAMENTAL BREACH OF CONTRACT - TERMINATION OF CONTRACT NOTICE 
  • We offered an immediate payment solution of funds ten days past due by PayPal - yet this has been ignored.
  • You have sent us certain proof of income - yet no expenses - thus we still have no complete financial information proving that the tenants your company "approved" are financially qualified to pay the rent, utilities, gardener etc. for the length of the lease you issue,
  • The lease is extremely vague and contains numerous incorrections that could endanger our property and finances. Again, you have not sent proof of correction, acceptance by tenants or "the final copy of the new tenants lease" - as requested.
    • .
    We are now obligated to serve Eagle Property Management our FUNDAMENTAL BREACH OF CONTRACT - TERMINATION OF CONTRACT NOTICE
    Again, we are very sorry that you and your company do not respond to written promises - including complete verifications of tenants.



----- Original Message -----
From: Dan
To: 'xxx'
Sent: Wednesday, October 24, 2012 7:27 PM
Subject: RE: xxxx, Elk Grove, CA 95624 - UTITLIES +

Hi Jan,

Ms. xxxx was the primary applicant who had a score of 588.  This came in above our minimum requirement of 550. 

We were unable to run credit reports on the second applicant, Mr. xxx.  We included him on the lease for income purposes.

Due to the language in our Rental Application Agreement along with our contract with our background check company, we are limited on the amount of specific information we are able to disclose regarding their credit history.  We will continue to do our best to answer all your questions given our contract restrictions.

Also, were you able to locate the contract you have with Jose?  If so, can you please forward that to our office.

Thank you!

Dan
----- Original Message -----
From: xxx
To: Dan
Sent: Wednesday, October 24, 2012 8:01 PM
Subject: Re: xxxx, Elk Grove, CA 95624 - UTITLIES +

You said their credit rating was above 600 on October 3rd at 13:47 p.m. PST - that her income was $3-4,000 and his less. Fortunately, the answering machine recorded your call.

You do not need our contract with Jose Luis. However, at this time - you may send me - your contract with your background check company stating that the legal landlords/property owners may not see the credit reports generated on behalf of their property.

The language in your Rental Application Agreement firmly allows us to request this information:

"I affirm that those individuals have knowledge of their inclusion on this application and expressly authorize you to obtain subsequent consumer reports, including credit reports. I understand that you may report all positive and negative rental payment history to consumer reporting agencies who track this information for landlords, mortgage companies and other creditors. I and all occupants or guarantors hereby release from all liability or responsibility all persons and corporations requesting or supplying such information."


Their background check company sent us the two contracts with Eagle Management. Nothing about above statement is true. The FCRA permits the landlord access to this information as having "permissible purpose". There is no legal reason not to supply all information collected by an agent to a landowner (principal of agent).

The "approved tenants" say they paid $25 x 2 = $50 when they applied on EM website. These funds were kept illegally:
  

CAL. CIV. CODE § 1950.6 : California Code - Section 1950.6


(e)If the landlord or his or her agent does not perform a personal reference check or does not obtain a consumer credit report, the landlord or his or her agent shall return any amount of the screening fee that is not used for the purposes authorized by this section to the applicant.
(f)If an application screening fee has been paid by the applicant and if requested by the applicant, the landlord or his or her agent shall provide a copy of the consumer credit report to the applicant who is the subject of that report.
(g)As used in this section, "landlord" means an owner of residential rental property.

http://codes.lp.findlaw.com/cacode/CIV/5/d3/4/5/2/s1950.6
http://codes.lp.findlaw.com/cacode/CIV/5/d3/4/5/2/s1950.5
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=evid&group=00001-01000&file=780-783




$183 – Proration of rent being held in Eagle Management trust account
My client is willing to remit this amount to you in the form of a check to your physical address; however, all of the following items must be resolved as outlined below before such remittance will be made.
  • Your ultimatum ( above ) constitutes coercion and extortion. Penal Code 517 - 527
  • The funds were collected as rent payments. They are legally ours and may not be used to negotiate release from our claims against your client.
  • EM has no choice than to remit these funds as seen in our contract and as determined - by DRE law B&P codes.
  • If EM feels we owe them anything, this is a separate matter - and they may sue us for their claims.

  • We are unable to accept checks - we are in Europe. International mail takes 5 - 15 days. The bank takes 15 - 30 + days to conform even a cashier´s check and charges 30-45 and more euros. 
  • Our property has expenses ( taxes, insurance, utilities, repairs, etc. etc. etc. ...) and we budget by the calendar - not by EPM´s rather anarchically scheduled non-payments.

  • EM executed a lease to begin October 26th 2012 - allowing their "approved tenants" to enter our property with a payment of six days rent ($183.00). 
  • Usual one month´s deposit + one month rent is charged - before releasing access to a rental property.
  • The tenants first saw the property before September 19th and asked EM to hold it for them until October 26th - or later. It is not clear what "promises" were made by EM - without our knowledge. EM has refused to send ANY information about this issue (Dates, reports, etc.)

  • October 3 - EM phoned us at 10:47 PM GMT+1 to tell us about the tenant application. The answering machine recorded their call. They said the tenant (lady) made between $3-4,000 a month and had a credit score over 600 - his income was a little less". They said they would be in touch in 2-3 days. 
  • We never heard from them again.
  • October 8th - We emailed EM  - "Any news?"
  • answer "Hi xxx,
    The tenants are looking to move in this month. They are bringing in the deposit on Thursday."
    Thanks, xxx"
      • October 17 - We emailed EM  - "When are the tenants moving into our home ?" - answer "Lease starts Oct 26th. Thanks, xxx"
  • We believe that EM acted as a dual agent. This is the only concrete record of payments we have received to this date ( try to figure this out ):






I imagine a subpoena and a Real Estate Investigation may help us find out what we should have been told by "Our Agents" and their FAILURE / BREACHES OF FIDUCIARY DUTIES TO US.
http://activerain.com/blogsview/3376026/dre-can-seek-costs-of-investigation-in-accusation-cases-b-p-10160-


Debarment  
10087.  (a) In addition to acting pursuant to the authority provided under Sections 10086, 10176, and 10177, the commissioner may, after appropriate notice and opportunity for a hearing, by order, suspend, or bar from any position of employment, management, or control, for a period not exceeding 36 months, a real estate salesperson or real estate broker, or an unlicensed person issued an order under Section 10086, if the commissioner finds either of the following:

(1) That the suspension or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the public.
(2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil
or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the real estate business in accordance with the provisions of this division.





$37.35 – PayPal charges for electronic payment by Eagle Management to your account
My client acquiesced to your demand that you be paid via PayPal, despite its custom of making payments by check or direct deposit. Therefore, in no event shall my client cover your expenses in receiving this payment as you demanded.

1. FACT - WE RECEIVED THIS PAYMENT ONE MONTH AFTER DUE.

  • Contract Clause 3. L., 3. M. - EM was to remit the Security Deposit collected October 1st-8th-10th and/or 11th of October (date to be determined upon subpoena of documents - and witnesses).
  • The funds were to be transferred to us by the 15th of each month. Earlier in this case.
  • We finally received the security deposit November 14, 2012 - ONE MONTH LATER - 20 DAYS AFTER GIVING THE KEYS TO THE PRESENT OCCUPANTS.
  • This is a material BREACH OF CONTRACT - and xxxxx.

  • A tenant pays EM $30 FOR "late fees" - Eagle Management is above the law for overtime penalty ?


    2. FACT - PAYPAL DOES NOT CHARGE FEES
  • PayPal is free. EM chose to use their credit/debit card. Credit Card companies charge a fee. 
  • EM chose to have us - pay the fees for using their Credit/Debit Card - and not link their bank account or transfer a balance to a PayPal Account - (there is an option - easier to understand than their software program by far). 
0.5% cross border = $4.75 on the $950 Security Deposit - WOULD HAVE BEEN THE TOTAL FEE.EM WAS TO PAY.

EAGLE PROPERTY MANAGEMENT USED SECURITY DEPOSIT FUNDS TO TRANSFER TO OWNERS. ILLEGAL - OF COURSE.

THESE FUNDS ARE TO BE HELD AS A SECURITY DEPOSIT - NOT USED AS EPM SEES FIT.
    PayPal Payments - More

    3. FACT - EM AGREED TO PAY TRANSACTION FEES.
    • Our invoice clearly stated that EM was to pay transaction fees (we are always careful - with specifics). They accepted this condition by paying the invoice - for funds due Oct. 15th - dated October 25th and finally paid November 14:



    Terms and conditions

    DANIEL IRWIN DRE Salesperson License Issued: 07/22/11 - AND/OR EAGLE PROPERTY MANAGEMENT IS TO PAY FOR ALL FEES ADDED TO THIS TRANSACTION - TO BE CHARGED AT A LATER DATE.

    Note to recipient

    FAILURE TO PAY FUNDS BY 15:00 PST - WILL CONSTITUTE A BREACH OF CONTRACT - REF,: "Aizenberg - PMA and LL" - DATED SEPTEMBER 6, 2012



    4. FACT - EM SAYS THEY SENT A CHECK - IT NEVER ARRIVED. THEIR WEBSITE ...
    • ... did not work - after multiple attempts - starting October 18th (they had forgotten about setting this up earlier). Oops.
    • ... asks for unnecessary information to transfer funds to our bank account. 
    • ... obligates us to allow removal of funds from our bank account. THE WORDING IS NOT SPECIFIC TO ALLOWING ONLY TRANSFERS. 
    • We had an Identity Theft in 2005. We do not give out our bank account and other information to just anybody - especially EAGLE MANAGEMENT - with the above mentioned - and other many "irregularities".



    5. WHAT THE LAW SAYS
    • The law states that we may decide how to be paid - " ... in accordance with instructions from the person entitled to the funds" - not EM.
    B & P Code (California law) Chapter 3, Article 1 10145.  (a) (1)
    Handling of Trust Funds - Interest-Bearing 
    Accounts - Neutral Escrow Defined
    10145.
    (a) (1) A real estate broker who accepts funds belonging  to others in connection with a transaction subject to this part shall deposit all those funds that are not immediately placed into a neutral escrow depository or into the hands of the broker’s principal, into a trust fund account maintained by the broker in a bank or recognized depository in this state. All funds deposited by the broker in a trust fund account shall be maintained there until disbursed by the broker in accordance with instructions from the person entitled to the funds.
    http://www.dre.ca.gov/files/pdf/forms/re540.pdf

    State of California - Department of Real Estate - TRUST FUNDS



    $23.37 – Proration of utilities (paid by owner or tenant)
    Pursuant to your contract with my client, all utilities are payable either by the owner (you) or the tenant, but in no event are they payable by Eagle Management.
    • We gave instructions - FIVE ++ TIMES -  to collect this payment - before your client´s "approved tenants" moved in - AND ARE PRESENTLY OCCUPYING OUR PROPERTY.
    • Oops. They forgot. Shucks. Oh Well.
    • See all email correspondence - EMAILS

    From:  xxx
    Sent: Tuesday, October 23, 2012 2:35 AM
    To: Dan
    Subject: Fw: xxx, Elk Grove, CA 95624 - UTITLIES +

    Dan,

    Sac City charge for October is 67.42/2 = 33.71/31 days = 1.09 day x 6 days = 6.52
    Sorry - the charge just arrived today (see adjustment below).

    From October 26th - 31st:
    6.52 - 67.42/2 = 33.71/31 days = 1.09 day x 6 days = 6.52 - Sac City
    5.95 - 51.50/2 = 30.75/31 days = 0.99 day x 6 days = 5.95 - Elk Grove City
    10.90                   56.30/31 days = 1.82 day x 6 days = 10.90 - Elk Grove Water - Base Charge
    --------
    23.37 - from 26 - 31 October 2012
    xx.xx    xx.xx Elk Grove Water - Usage (according to bills)
    xx.xx    xx.xx SMUD (according to bills)





    Holding property fees
    My client is not sure of the nature of this claim, but its agents suspect you are demanding cover for the time the house was vacant between the date of lease execution by the tenants and the date they moved in to the property. If this is the case, they are not obligated to pay such charges, as the lease term was specified
    and prorated rent was collected.


    HOLDING PROPERTY FEE - Agreement with Applicants to hold Property for 26 days or longer. Fee to be determined upon receiving exact screening information with dates, from Eagle Property Management - also known as:
    Josh Bussey
    Eagle Management 
    Owner / Broker
    DRE: 01900023
    and
    EAGLE INVESTMENT MANAGEMENT, LLC. 
    • Oops. Tenants do not execute leases - do they Mr. Lawyer. Oh Well.
    • I am sure your client is not sure. "My client is not sure of the nature of this claim, but its agents suspect you are demanding cover for the time the house was vacant between the date ..."
    • Read what you wrote - it does sound rather silly - "If this is the case, they are not obligated to pay such charges, as the lease term was specified and prorated rent was collected."
    • Since your client has repeatedly REFUSES to give us any information requested, we will rely on subpoenas for documents and all witnesses (to declare under penalty of perjury).
    • Simple solution - tell your client not to worry (if he has no reason to).
    • Oh, by the way, your client did collect the pro-rated rent ($183.00) and refuses to remit payment unless we "cooperate with this demand". Sounds like extortion ? Coercion ? You tell us Mr. Lawyer - you are the one who studied law - maybe we should find someone who also offers 30 minute free consultations.






    USUAL TO - Require 1st month, last month and $ONE MONTH security deposit to move in
    • We have your client´s "approved tenants" declaration that your client agreed to hold the property for them from the first of October (or probably earlier) until the 26th - and accept 6 days of rent instead of one month. The dates of payments are conflictive and contradictory.
    • The "approved tenant" says they first saw the property with the backyard a mess. The backyard was cleaned September 17th.
    • The tenant contract is dated October 8th. It remains unsigned.
    • Occupant declares leaving a cashier´s check for $500 on October 1st - - and that EM agreed to hold the property for them until the end of the month.
    • Again, we believe that your client acted as a dual agent. We were not consulted or informed.
    • Again, we reserve our legal rights to subpoena all of your client´s documents. Your client has refused to give us more than this accounting information:

    Your client charged their "approved tenants" six days rent + one month deposit - to move in October 26, 2012. 
    • $950 + $183 = $1,133 versus 
    • $950 x 2 = $1,900 or 
    • $950 x 3 = $2,850.
    • He refuses to properly document dates. We received partial payment November 14th.
    • He refuses to pay 6 days rent collected - $183. 
    • Using these (trust funds) he has collected, is holding and refuses to disburse to us - as a tool for negotiating our claims (seen within your letter). Extortion - a small one, but yes ?
    • They favored their "approved tenants" - not us.

    FACT
    The California Civil Code establishes the maximum amount that landlords can charge tenants as
    a security deposit. For a non-furnished residence, a landlord cannot charge more than twice the
    rent, plus the first month’s rent, as a deposit.  Civil Code §1950.5(c).

    http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=civ&codebody=&hits=20





    BELOW IS A SERIOUS EXPLANATION OF HOLDING A PROPERTY MR. SCOTT >>>>


    Acceptance/ Cancellation


    When your application is approved, your Financial Fitness Instructor will let you know your maximum rent payment ("max rent") based on the income and debt information that we've received. An approved application and a $500 holding deposit will keep a home off the market during your 72-hour qualification period. If you are holding a home for move-in longer than 14 days, we do require a 1 month rent deposit to be paid in advance of move-in. If you should cancel your hold between the period of your approval and your move-in, we will gladly refund your deposit less daily rent multiplied by the number of days the home was held off the market for you.
    --------------------------------------------------------------------------
    Below is a screen shot of the property taken off the market October 7, 2012 - we blanked out the address
    ----- Original Message -----
    From: Dan
    To: 'xxxx'
    Sent: Wednesday, October 24, 2012 6:41 PM
    Subject: RE: xxxxx, Elk Grove, CA 95624 - UTITLIES +

    Hi Jan,
    The tenants have paid:
    Security Deposit= $950 paid on 10/11/2012
    Proration for October (10/26-10/31)= $183 due on 10/26/ 2012


    ALL VERY STRANGE. THE HOUSE WAS RENTING LOWER THAN THE MARKET PRICE OF $1067 - IT SHOULD HAVE RENTED IMMEDIATELY.

    EM ASKED US TO LOWER $55 - WE SAID NO.


    December 6, 2012 • Page 2 of 2

    $480 – one year of landscape services
    My client is under no obligation to pay for landscaping of the subject property, regardless of any third party agreement you may have with a landscaper. The cost of landscaping services was not a term of the owner-manager agreement, nor was it a term of the tenant’s lease agreement.
    • Oops. 
    • EM forgot to put this condition in both the contracts, marketing, etc. 
    • Oh Well.
    • They are responsible for this lack of care / attention to our requests = negligence. This FACT is documented in multiple emails.
    • This fee will be waived if EM wants to mow the law, replant lost grass, trees and plants (from previous tenants). We will need proof that they are doing so weekly - and be satisfied with their work.
    • Their "approved tenants" are suffering a medical dis-capacity - and are not able to do any physical excesses.
    • As you know, Agreements / Contracts may be verbal. Fortunately, we document all and show this was a condition from before and after the signed owner-agent contract. 
    • We consider all written emails to be an intrinsic part of our agreement - as we believe the legal system does also - and is stated within our contract (never signed by EM).
    • FOR EXAMPLE - TWO EXHIBITS (of many more):
    • ----- Original Message -----From: xxxxxxxx
      To: Dan
      Sent: Wednesday, September 05, 2012 4:26 PM
      Subject: Re: xxxxxxxxxx- Eagle Management

      Dan,
      The contracts are fine - with the changes.
      It is a good idea to write the five/six appliances into the management and tenants contract - identifying them (Brand - Model - serial number) and that this is part of the property - (EG Police recommended this).
      APPLIANCES:
      Stove (new) January 2011 – RY160LXTB - Black Whirlpool 30-inch Self-Cleaning Slide-In - # ?
      Dishwasher (new) February 2012 – Amana Built In Dishwasher – ADB1000AWB - # ?
      AS IS:
      Refrigerator
      Clothes dryer (2) - original in garage - needs to be checked/changed
      Washing machine

      The rental price apparently has to be the same as the ex-tenant who is liable for a one year lease she signed last March 20.

      Apparently (according to xxx) the conditions have to be the same -

      (XXX WROTE): "I checked on raising the rent and it is not advisable.  If you raise the rent you cannot hold the tenant (who is moving out and breaking the lease) responsible to pay any rent for the time between their move-out and when the property is re-rented."

      xxx then wrote that this ex-tenant is filing for bankruptcy. She left July 20th owing rent - four months of utilities - clean-up and some damages.


      950RENT
      29EG Utilities
      34SAC Utilities
      78EG Water
      60gardener
      1151TOTAL
      I will email an excel account - history of the house (repairs made/vendors - neighbors - etc.)

    ----- Original Message -----
    From: Dan
    To: 'xxxxxxx'
    Sent: Friday, September 21, 2012 8:05 PM
    Subject: RE: water

    In the lease listing agreement we have the tenant paying all utilities (including landscape). Is this correct or does it need to be updated?
    I have a xxx call into the insurance company. They are to be calling back ASAP xxx.
    Thanks,
    Dan

    OUR QUESTION: WHY WAS AGENT DAN ASKING THIS AT THIS DATE ? COULD THEY HAVE BEEN PREPARING THE CONTRACT/PROPERTY TO RENT TO SOMEONE ? VERY ODD !! 2 + 2 = 4


    BACKYARD BEFORE TENANTS
    BACKYARD AFTER TENANTS


    OH WELL !!



    $600 – HVAC replacement on a monthly basis
    This expense is excessive. A typical HVAC filter costs no more than a few dollars, so that the total yearly
    expense would not rise above $100 if the filter was replaced monthly. However, that is beside the point.
    Replacement of the HVAC filters was not a term of the owner-manager agreement, and so my client is
    not obligated to pay this charge.
    • The HVAC system is new (cost $5,000). We had condensation problems - because previous tenants did not change the filter - causing costly breakdowns and damages.
    • We emailed EM October 18th - to write this into the addendum. Oops. They forgot. Oh well.
    • Yes, the cost of the filter may be $100 or less - yet the filter does not know how to walk to our house and install itself. We need a person to do this. I believe this is called labor and we actually underestimate this expense.
    • This labor fee will be waived if EM wants to install the filter once a month. We will need proof that they are doing so.
    • Again, do not base all of our agreements on the unsigned owner-manager agreement - the following email exchange will be an EXHIBIT for our lawsuit filing.

    From: xxx
    Sent: Thursday, October 18, 2012 11:34 AM
    To: Dan
    Subject: Re:xxx, Elk Grove, CA 95624

    Dan,

    1 - What does "immediate family" mean in the contract ? (1.B.)
    2 - There is no gas - the tenants need to pay us for all the utilities. They may put SMUD in their names.
    3 - You need to write in that the tenants will change the HVAC filter once a month.
    4 - There needs to be numbers identifying the appliances (required by police).
    5 - Are they paying for Jose Luis to do the gardening ?
    I will have more questions/comments.
    xxx


    ----- Original Message -----
    From: Dan
    Sent: Monday, October 22, 2012 10:35 PM
    Subject: RE: xxx, Elk Grove, CA 95624

    Hi xxx,
    Immediate family is considered children under the age of 18 (although both tenants have none). All utilities are the tenants responsibility. They will be able to transfer the SMUD but unable to get Water, Sewer, Garbage into their name without you calling and allowing this. If you would like my help on this please just let me know. When the tenants come back in to get keys I will give them an updated addendum to sign stating that they are to replace HVAC filter once a month and will have the appliance numbers on there as well (we have them all in our system already). I informed them of Jose and his services. Not sure if they decided to use him or not. Will ask them again when they come in.
    Thanks,
    Dan



    I call your attention to clause 15 of the owner-manager contract.

    ???? What exactly do you call our attention to Mr. Lawyer ? 
    • This clause says there can be modifications,
    • There were written modifications - with both parties agreeing (they answered each other)
    • Clause - 15. 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 contract. Owner acknowledges Owner has read, understands, accepts and has received a copy of the Agreement.
    • Again, EM never sent a copy signed by them. This clause - like all EM contracts - remained unsigned.
    • This and all contracts are illegal - we reserve our reasons for the courts and Department of Real Estate Commissioner.
    • Perhaps you mean clause 8 ? Oops.



    THIS IS A CLASSIC MR. LAWYER >>>>>>>>>>>>

    Please keep in mind that my client never received any payment for its contracted services on your account. Eagle Management would have been entitled to 35% of the first month’s rent ($332.50) and $65 per month thereafter (totaling $780). However, due to the breakdown in relations caused by your excessive demands outside of the owner-manager agreement, the contract was cancelled prior to my client’s receiving any payment from you.
    • Your client should definitely sue us then. We understand how we must have hurt his feelings.
    • I believe the contract ended because of EM´s negligence: 
    • -- an obstinate refusal to pay us any funds on time - as stipulated by their contract, 
    • -- an obstinate refusal to remit funds (not negotiable),
    • -- an obstinate refusal to send guarantees that they properly verified the tenant application and,
    • -- an obstinate refusal to show - the applicant´s ability to enter a financial commitment,
    • -- an obstinate refusal to rectify mistakes in contracts they executed, to follow our instructions and 
    • -- an obstinate refusal to answer our questions: Exact Dates, Funds, Verification, etc. etc. etc.
    • -- what else is dictated by the law and not included within this list.
    Agency Relationships

    • I believe that we own the property - and EM acted negligently - and - as a dual agent. They favored the "approved tenants" - not us. Owner acknowledges receipt of the "Disclosure Regarding Agency Relationships" (CAR. Form AD). Oops - Oh well - EM  never sent this to us. 
    • I believe our proper and politely written requests (what you call "demands") were logical, and so seen in over 140 emails exchanged - very properly - repeating the same information over and over multiple times.
    • I believe that EM´s licenses are subject to suspension and/or revocation - due to all the above FACTS, and the many others we have not published or stated herein.
    • We still believe in terms and values called MORALITY and HONESTY. We will fight the lack of - as we see necessary - NOT A FINANCIALLY PROFITABLE CAUSE - however, well worth our time.
    California Business & Professions Code Section 10176 permits the suspension or revocation of a real estate license when a licensee is found guilty of "acting for more than one party in a transaction without the knowledge or consent of all parties thereto." Bus. & Prof. Code, §10176(d).
    http://www.cwclaw.com/publications/articleDetail.aspx?id=658

    Specifically, Section 3333 of the California Civil Code states that the measure of damages for fiduciary fraud "is the amount which will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not." In one appellate decision, the court limited the defrauded principal's recover the extent of the actual financial injury and not the benefit of his bargain. Overgaard v. Johnson. (1977) 68 Cal. App. 3d 821, 823-24. On the other hand, some cases appear to measure damages based on the the plaintiff's expected "benefit of the bargain." Pepitone v. Russo (1976) 64 Cal. App. 3d 685, 689.


    Demand is hereby made that you cease and desist badgering my client any further. Eagle Management is
    foregoing its rights to collect unpaid contractual fees from you provided you cooperate with this demand.
    • Frankly - I would rather have all my teeth pulled - without anesthesia - than ever deal with your client again. 
    • We have never "badgered" your client. He just does not answer emails nor remit funds. That simple.
    • Poor thing - imagine receiving three reminders to pay us and admit they were "irresponsible" - at the overwhelming rate of once per week - since offering to send a check for our funds due !!
    • We cannot sleep - it is just awful that he feels so "badgered". Actually - we began to think he had taken a cruise somewhere ...

    ----- Original Message -----
    From: Josh Bussey
    To: 'xxxxx'
    Sent: Wednesday, November 14, 2012 11:16 PM
    Subject: RE: xxxxx, CA 95624 - REQUEST FOR MEDIATION of NOTICES - BREACH OF CONTRACT - TERMINATION OF AGREEMENT - FINAL COMMUNICATION

    Hello xxx,

    Although it is not in our normal procedures to pay via “paypal”, we went ahead and made the payment as you requested as a courtesy.  The payment was processed today and the receipt number is 1076-01506807-5394.

    The tenants got the keys to the property on the morning of October 26, 2012 which was prior to receiving your notice of contract termination.  You are correct that the tenant requested to pick up the keys that Sunday.  We informed her that doing so would not change the proration amount that was due.  She therefore picked up the keys when the lease started.  We are still holding the $183 of proration in our Trust Account.  Please let me know how you would like these funds remitted.  

    For your records, the lease documents are attached.  As I understand from your emails, you are already in contact with the tenant.

    Thank you!

    Josh Bussey
    Eagle Management
    Owner / Broker
    DRE: 01900023
      
    • 1 - ORIGINAL INVOICE SENT - 19th -  November. NO REPLY.
    Your invoice (0007) was just sent to Eagle Management et al.. Please note that it may take a few moments for this transaction to appear in your account.
    See your invoice
    Note to Eagle Management et al.
    You may use a PayPal balance or bank account for this payment. PLEASE DO NOT USE CREDIT OR DEBIT CARDS FOR PAYMENTS*. *If paid with a debit or credit card - a 4% fee will be added and charged to your next bill.

    Summary of your invoice

    Sent toEagle Management et al.
    jbussey@eimproperties.com
    Sent fromxxxxx
    xxxxx
    Invoice number0007
    Date payment is due19 Nov 2012
    Amount$243,72 USD
    See the invoice as your recipient sees it
    Sincerely,
    PayPal



    2 - Reminders (2 and 3) sent - 28th. NO REPLY

    Sent: Wednesday, November 28, 2012 4:58 PM
    Subject: Re: xxxxxxx, Elk Grove, CA 95624 - REQUEST FOR MEDIATION of NOTICES - BREACH OF CONTRACT - TERMINATION OF AGREEMENT - FINAL COMMUNICATION



    Please pay us what is owed, at this time, by PayPal. The invoice has been sent twice.



    Thank you for your time and attention.


    Reminder: your invoice payment is due

    Hello Eagle Management et al.,
    Here's a reminder that your payment is due for this invoice.
    Reminder from XXXXXXX
    AMOUNT PAST DUE. Funds collectied October 26, 2012. We cannot delay on this account any longer.

    Pay Invoice


    3 - REMINDER SENT DECEMBER 4. NO REPLY

    Reminder: your invoice payment is due

    Hello Eagle Management et al.,
    Here's a reminder that your payment is due for this invoice.
    Reminder from THE xxxxxxxxxx
    THIS IS YOUR FINAL NOTICE FOR PAYMENT ! If your payment is not received WITHIN 48 HOURS, this account will be FOLLOWED BY A FORMAL "DEMAND" AS REQUIRED - TO FILE LAWSUITS. This is an attempt to collect a  debt.

    Pay Invoice

    Please direct your response to this letter in written format to this office.
    • Our response is directed in a written format to you, your client - and all who have access to the world wide web. 
    • We hope it is clear. 
    • Should you have any questions or doubts - please contact us. 
    • We have plenty more FACTS not reproduced within this site. Our time has been wasted enough and prefer to prepare the rest of our disputes calmly - since your client has refused mediation and arbitration. We are aware of the statute of limitations - therefore - are not pressured.
    • Please understand that we have many other personal and obligations. 
    • We believe that this issue is quite clear - and the longer your client fails to perform his fiduciary duties and legal obligations - the more irritated we will become.
    • Please try getting work as a soul singer - not a lawyer. Your near future may also be in jeopardy Mr. Scott. 
    • We believe that Attorney´s are also liable for losing their licenses: http://ethics.calbar.ca.gov/ - for writing similar letters of extortion, etc.
    • Finally, after your attempts to threaten, coerce, intimidate and resort to "negotiation" - we see another potential cause for filing a lawsuit..

    Very truly yours,

    LAW OFFICE OF MATTHEW D. SCOTT
    MATTHEW D. SCOTT
    Attorney at Law
    Enclosures
    cc: Eagle Management
    c/o JOSHUA BUSSEY
    via email only

    A favorite saying - "He is so cynical - that if he killed his parents - he would beg for a pardon - due to being an orphan".

    Unethical or Improper Professional Conduct - interesting reading:

    http://rules.calbar.ca.gov/Rules/RulesofProfessionalConduct.aspx
    https://secure.ethicspoint.com/domain/media/en/gui/11093/faq.html
    http://www.calbar.ca.gov/
    http://ethics.calbar.ca.gov/LinkClick.aspx?fileticket=mPBEL3nGaFs%3d&tabid=455
    http://rules.calbar.ca.gov/Rules/RulesofProfessionalConduct/CurrentRules/Rule3110.aspx

    P.S. - 1. WE DO NOT HAVE ANY SIGNED CONTRACTS FROM EAGLE MANAGEMENT AT ALL.

    ADDITIONAL REQUIREMENTS ­ DOCUMENTS
    The following is an additional requirement of the Real Estate Law and the Commissioner’s Regulations relating to the preparation and management of real estate transaction documents. Person Signing Contract to be Given Copy Under Business and Professions Code Section 10142, any time a licensee prepares or has prepared an agreement authorizing or employing that licensee to perform any acts for which a real estate license is required or when the licensee obtains the signature of any person to any contract pertaining to such services or transaction, the licensee must deliver a copy of the agreement to the person signing it at the time the signature is obtained. Examples of such documents are listing agreements, real estate purchase contract and receipt for deposit forms, addenda to contracts, and property management agreements.

    ref.: http://www.dre.ca.gov/files/pdf/re13.pdf - PAGE 10

    2. YOU AND EM AVOID TALKING ABOUT OUR REQUESTS FOR:
    • All documents verifying their applicants are qualified to pay the lease commitments,
    • The FCRA - permits owners to access all consumer information. EM is a property agent who collects this information on the owner´s behalf and for the benefit of.
    3  Questions and Answers Regarding Trust Fund Requirements and Record Keeping
    Q. Are security deposits on rental units the property of the owner or should they be held in trust by the broker for the tenant? 
    A. They are trust funds. As such, control and disbursement of the security deposits are at the instruction of the property owner. 
    ref.: http://www.dre.ca.gov/files/pdf/re13.pdf - PAGE 18

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