Property Management Agreement

and
Cindy Hamel PREC
Phone: (604) 807-1105

and
Brooklyn Paterson PREC
Phone: (604) 825-379

Picket Fence Property Management Group
Brokerage:
Royal LePage Northstar Realty
118-15272 Croydon Drive Surrey, BC V3Z 0Z5

Fax: (778) 734-0990
Email: Admin@picketfencepmg.com

(hereinafter referred to as “the Agent”)

WHEREBY IT IS AGREED AS FOLLOWS:

APPOINTMENT AND AUTHORITY

1. MANAGEMENT FEES (the “Management Fees”) - 8% of the gross monthly rentals collected (or a minimum of $75.00 per month, whichever is greater) and other income generated including the collection and recovery of operating expenses, taxes, etc., collected hereunder, such remuneration to be payable monthly as a charge by the Agent by way of deduction in its monthly statement.
2. LETTING FEES (the “Letting Fees”)– Upon the establishment of a new tenancy within the subject Property, 1/2 of the first month’s rent payable upon the tenancy being secured. The Agent is hereby authorized to deduct and retain the said Fees from the monies held in trust for the Owner and the Owner shall pay any deficiency upon receipt of demand by the Agent.
3. YEAR END ACCOUNTING FEE (the “Accounting Fee”)- $45.00 per year. The Agent shall provide the Owner with an accounting summary outlining the accounting in relation to the Property in January of every year, such accounting summary to cover financings for the previous calendar year
4. OTHER FEES AND CHARGES - Such other fees and charges as shall be agreed from time to time in respect of specifically agreed duties. The Agent shall also receive fees from the Owner for requesting an assignment of lease or sublease of the Property, returned cheques, late fees, and other services that are not in conflict with this Agreement. In the event of an NSF cheque, the Agent shall have the ability to claim a $25.00 fee from the tenant and shall be entitled to keep such amount in full.
5. DISBURSEMENTS (the “Disbursements”) – Disbursements incurred in the performance of this Agreement, such disbursements to include but not be limited to bank fees, courier/mail charges (if applicable), credit reports (if applicable), and marketing materials. These Disbursements are in addition to all other disbursements specified elsewhere in this Agreement.
6. TAXES - Such Federal, Provincial and Municipal Taxes as are applicable to any goods or services supplied either by the Agent or by other parties in respect of the Property.
7. Any Fees due to the Agent under the terms of this Agreement which are not paid within 30 days, unless agreed otherwise by the parties, shall bear interest at a rate of 2% per annum.

LETTING DUTIES - In connection with any proposed letting of the Property, the Agent will:

1. Advise on current rental value of the Property.
2. Receive written applications from prospective tenants and conduct interviews of suitable prospective tenants.
3. Accompany prospective tenants on any such visits to the Property as the Agent may deem necessary.
4. Obtain any investigations, including credit reports, and references for the prospective tenant as required by the Agent, in its sole discretion, to be necessary before granting any tenancy of the Property. For the avoidance of doubt, the Agent shall not be in any way responsible for any default by the tenant selected by the Agent in good faith.
5. Collect from any tenant a security deposit, which in the case of a Residential Tenancy shall be the equivalent of one half (1/2) month’s rent. Security and pet deposits will be held by the Agent in a trust account separate from the pooled rental trust account. The Agent shall incur no liability in the event of a bankruptcy or failure of any financial institution at which any amounts due in relation to the Property are held.
6. Prepare a Schedule of Condition for the Property for the signature by the tenant prior to the commencement of any tenancy.
7. Notify the suppliers of the gas and electricity to the Property of the responsibility of the Tenant to pay for such services as from the date of the commencement of any tenancy.
8. Take any other steps, which seem to the Agent to be appropriate or necessary in the circumstances.
9. The Agent shall not be responsible for any losses incurred due to the inability to rent the Property.

If the Property is tenanted and the current tenant needs to be removed, Owner shall pay to the Agent a fee of $800.00 plus all applicable residential tenancy fees and Sheriff costs.

GENERAL MANAGEMENT DUTIES

1. The Agent will, in connection with any tenancy of the Property:
   1. Collect rent and all other monies due from the Tenant. The Agent shall assume no liability for any arrears in the collection of rents or other payments due from tenants or other persons with respect to the operation of the Property or the operation of equipment on the Property.
   2. Where appropriate, upon non-payment of any rent or part thereof due, enter and disdain upon the premises of the tenant therein liable and for the purposes aforesaid to employ such Bailiff of Bailiffs as the Agent shall deem necessary and expedient and as qualified by law.
   3. To commence in the name of the Owner and at the option of the Owner, any action or other proceeding in any Court or arbitration medium, for the recovery of such rent or rents and profits and for the recovery and getting possession of any part of the said Land and Premises and to prosecute or discontinue such action or proceeding or otherwise act therein as the Agent shall think proper or be advised.
2. In connection with the general management of the Property, the Agent will:
   1. Make periodic inspections of the Property. In the event that the Owner requires an inspection within six months of the previous inspection, an extra charge of $50 shall apply.
   2. Render to the Owner monthly statements in detail of all receipts and disbursements and deposit to the Owners trust account the credit balance less any necessary withholding to cover unusual expenses as shown therein. Copies of invoices will be provided to the Owner upon request.
   3. Make disbursements on behalf of the Owner in respect of repairs, maintenance or alteration expenses. Approval from the Owner shall not be required for monthly or recurring operating charges, emergency expenditures needed to protect the Property or other properties from damage, prevent injuries to persons, avoid suspension of necessary services, avoid penalties, finds or suspension of services to tenants that are called for in any lease or rental agreement by law.
   4. Return to any outgoing tenants the damage deposits and/or pet deposit collected at the commencement of the tenancy in accordance with the requirements and provisions of the Residential Tenancy Act.
   5. Make disbursements of behalf of the Owner in respect of the Strata fees.
   6. Direct deposit or mail a cheque for the net monthly revenue from the Property to the Owner by the 15th of every month.

REPAIRS TO THE PROPERTY - Without the consent of the Owner, the Agent shall have the ability to undertake or arrange for the following:

1. Minor repairs to the Property, which are those costing less than $500.00 plus GST.
2. Emergency repairs which are repairs to defects related to the Property of such a nature that they carry a risk of further damage to the Property or damage to adjoining Property or personal injury if not attended to immediately.
3. Other works to the Property in circumstances where, because of the lack of time or unusual circumstances, it is not reasonably practical to obtain prior instructions from the Owner.

The Agent will report to the Owner any need for other repairs revealed by the periodic inspection or otherwise brought to the Agent’s notice. The Agent shall not be required, as part of his normal management duties, to supervise any repairs nor to provide a specialist’s advice to the Owner as to the nature of the repairs required. The Agent accepts no liability in respect of any loss or damage arising from substandard or inadequate repair works or from any default by a repairing contractor.

ENFORCEMENT OF TENANTS OBLIGATIONS - The Agent will take reasonable steps to enforce the terms of any tenancy agreement related to the Property on behalf of the Owner. If legal action is required in this respect, the Agent shall have the ability to, having consulted with the Owner, instruct the Owner’s solicitor to act on behalf of the Owner.

NON-RESIDENT TAXATION

1. The Owner will inform the Agent, in writing, of any period when he is a non-resident of Canada.
2. During any period for which the Owner is considered a non-resident, the Agent will remit 25% of the rental income to Revenue Canada on behalf of the Owner.
3. In respect of any period during which the Owner is considered a non-resident of Canada, the Owner shall prepare and submit to Revenue Canada an NR return as required by the Income Tax Act. In the circumstances where such a return is required, the Owner undertakes to submit an Income Tax Return for the relevant financial period.
4. In respect of those financial periods when a NR6 form is required, the Owner undertakes to file an Income Tax Return. In the event that the Owner does not file an Income Tax Return or any NR returns as required by the Income Tax Act, the Owner shall indemnify and save harmless the Agent from any liability, claims, costs, and expenses related to such failure to do so. For further clarify, in the event that the Owner’s failure to complete any requisite filings results in harm or cost of any kind to the Agent, which shall include but not be limited to the garnishment of the Agent’s wages, the Owner shall promptly reimburse the Agent for the full amount of any such incurred costs.
5. The Agent shall not be required to take any steps to determine whether the Owner is a non-resident and shall not be required to make any remittances or submissions as outlined herein unless the Owner advises the Agent that he is a non-resident.

PUBLIC LIABILITY INSURANCE - The Owner undertakes to place and maintain adequate liability insurance and any other insurance which a prudent owner in a similar situation would obtain, from time to time, for the Property throughout the term of this Agreement. The Agent shall not be responsible in any way whatsoever for any damages, claims, lawsuits etc. that may result due to a failure of the Owner to obtain and maintain adequate insurance. in respect to the Property.

ADVANCEMENT OF AGENT’S OWN FUNDS – The Agent shall not be required to advance its own funds for any reason in connection with the Property or this Agreement. In the event that the Agent elects to advance its own funds, the Owner shall pay to the Agent the full amount advanced within two weeks from the date that the money is advance. Late payment shall result in interest being accrued at a rate of 2% per annum.

TERMINATION – This Agreement shall become null and void upon one party giving to the other 30 days written notice, delivered by registered mail. If, for any reason, the Owner wishes to terminate this Agreement within one year of signing this Agreement, a cancellation fee of $200.00 per Property shall apply. Upon termination, the Agent shall surrender to the Owner all bank records, lease agreements, contracts and other files and records request by the Owner which are pertinent to the continued operation of the Property, provided that the Owner shall reimburse the Agent for any reasonable costs incurred in connection with the reproduction and delivery of such documents and information which the Agent may reasonably require in order to do so.

OWNER’S WARRANTY - The Owner hereby warrants to the Agent that he/she has full authority and is entitled to enter into this Agreement, that there are no written or oral agreements affecting the Property other than those as set out in this Agreement that would impact the Owner’s ability to enter into this Agreement, that he/she has obtained all necessary consents and that he/she is entitled to all rents arising from the Property. The Owner agrees to provide the Agent with copies of all leases, operating contracts and agreements related to the Property currently in existence within 72 hours of execution of this Agreement.

ASSIGNMENT: Owner agrees that this Agreement may be assigned to another Agent or Broker. This Agreement is the property of the Agent, not the Broker. Any assignment of this Agreement will require the written notification to the Owner(s) by the Agent within 7 days of the assignment. The Owner(s) hereby authorizes and approves that any assignment is to be effective upon the written notification. For greater clarity, the Agent shall not be required to obtain the consent of the Owner prior to any such approval.

OWNER’S INDEMNITY - The Owner shall, during and after the termination of this Agreement, indemnify and save the Agent harmless from any damages or injuries to persons or property, or claims, costs, expenses and fees arising from any cause whatsoever (except if due to the gross negligence of willful misconduct of the Agent), provided the Agent is carrying out the provisions of this Agreement or is acting on the subsequent directions of the Owner. Under no circumstances shall the Agent be liable to the Owner for the amount of any loss or damage to the Property or its contents against which the Owner is insured and entitled to indemnification.

THE PROPERTY – To the best of the Owner’s knowledge, the Property does not contain any asbestos, urea formaldehyde, radon or other toxic or hazardous substance and no unsafe conditions exist. The Agent does not assume, nor is given any responsibility for compliance of the Property or any building or equipment thereon to any requirements of any building codes or with any statute, ordinance, law or regulation of any governmental body or public authority having jurisdiction, except to promptly notify the Owner of any warnings, complaints, notices or summons received by the Agent relating to the Property or any such matters. The Owner represents to the Agent that to the best of the Owner’s knowledge, the Property and all equipment located thereon comply with any such requirements.

THIS AGREEMENT shall ensure to the benefit of and be binding upon the Owner and his/her heirs. In accordance with the privacy act the agent agrees not to disclose any personal information with out prior written agreement of the owners. Royal LePage Northstar Realty will only collect, store, use and disclose personal information as needed to provide professional and competent property management services and to meet legal, regulatory or statutory requirements.

SEVERABILITY – If any provision of this Agreement is held to be illegal, invalid or unenforceable, the remainder of this Agreement shall not be affected and each provision shall remain separately valid and not be affected thereby, and shall remain enforceable to the extent permitted by law.

PRIVACY – the Broker and or Agent will only collect, store, use and disclose personal information as needed to provide professional and competent property management services and to meet legal, regulatory or statutory requirements.

IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement this: