Property Management Agreement

This agreement, made the 1st  Day of Month, 2005 Between You the client. hereinafter designated as "Owner" and RAB Property Management hereafter designated as RAB.  Owner hereby exclusively appoints RAB to rent, lease, operate and manage the property known as:

ADDRESS AND LEGAL DISCRIPTION

Responsibilities of RAB

* RAB is authorizes by Owner to: Rent the premises; investigate references; sign leases, renew or cancel existing leases, and prepare and execute new leases; adjust rents according to market demand; market the premises, display signs thereon. Terminate tenancies; sign and serve notices as deemed necessary by RAB; institute and prosecute action to evict tenants; and to recover possession of the premises: sue for and recover rent: settle, compromise, and release such actions or suits or reinstate such tenancies; and to adjust rents according to market demand. RAB to collect rents and other income, to give receipts therefore, and to deposit all funds collected hereunder in RAB’s trust account.

* RAB shall pay Owner’s expenses from Owner’s account. These expenses will be determined by Owner and may include; utilities, taxes, assessments, dues, encumbrances, repairs, maintenance and mortgage payments. Expenses are the sole obligation of the Owner.

* RAB is authorized in the name of and at the expense of the Owner, as may be advisable or necessary, to make or cause to be made, ordinary repairs and alterations to the premises, make contracts for utilities, fuel, trash collection, or other term services, and owner will indemnify RAB for any responsibility for such contracts beyond the term of this agreement.

* RAB may retain or hire, on behalf of the Owner at Owner’s expense, services of persons or companies as RAB determines in RAB’s reasonable discretion necessary for the maintenance of the subject property. Although it is the parties intention that these persons or companies will be independent contractors and not employees, if it is agreed or determined otherwise, said person will be Owner’s employees and Owner will be solely responsible for any employee related responsibilities including reporting, filing , liabilities and taxes. It is further agreed that Owner will indemnify and hold RAB harmless for claims of said person or companies from any employer related obligations. And from any government or agency claims.

* RAB is authorized by Owner, at RAB‘s sole discretion, may , but is not required, to initiate and proceed with any legal proceedings relative to management of the subject property, provided however RAB will seek Owner approval if legal fees will exceed one month gross income from the property. Owner agrees to pay and reimburse RAB for any legal fees, expenses and costs relating to such proceedings.

* RAB shall render to Owner a monthly statement of all receipts and disbursements, remitting any balance other than amount stated as expenses, shown to be due the owner. The monthly statement will be provided at a secure access internet site and monies due owner which will by conveyed by direct deposit into an account specified by owner. The disbursements shall include the compensation of RAB on the basis therein provided; RAB is required by law to report all rental income to the internal revenue Service at the end of each calendar year, but the use of I. R. S. For # 1099. It will be reported under the one social security or federal ID number provided by Owner. Owner will receive a copy of this form for tax records along with any annual statement.

* RAB will be responsible for tenant evictions and eviction processes during the term of this agreement for any tenants that were approved by RAB.  RAB may collect eviction expenses from the tenant.

Responsibility of Owner

* Owner warrants and assumes the responsibility that all structural components of the premises are in good repair and the premises are in good conformity with state and local regulations. Owner acknowledges that RAB has made no representations regarding condition of the property unless specifically set forth herein. Owner promises to keep the property free from lien or foreclosure of any type during this Agreement.

* Owner is responsible for any personal property left on the premises. RAB will not be responsible nor held liable for the loss, theft or damage thereof. RAB will not be responsible for inventory of these items.

* Owner agrees to indemnify, defend and hold RAB harmless against and from all claims arising from the condition of the premises, acts of Owner or third parties on or about the premises, acts of RAB and or employees performed with the express or implied consent of Owner, and from and against all costs, attorney’s fees and expenses incurred by RAB in connections with such claims.

* Owner agrees to carry adequate property insurance coverage to protect , to Owner’s satisfaction, real and personal property. Owner shall pay cost of this insurance. RAB will be furnished a copy of such policy or policies. RAB will be named as additional insured.

* Owner is responsible for the immediate remittance of funds to RAB if the income is insufficient to cover expenses. RAB is not responsible for late charges due on any payment made on Owner’s behalf, if due to a cause beyond RAB’s control.

* Owner shall reimburse RAB promptly for any monies, which RAB may elect to advance for Owner expenses. Nothing contained herein, however, shall be construed to obligate RAB to make any such advances.

* Owner agrees to comply with laws and regulations regarding landlord and tenant relations including without limitations the Washington State Landlord/Tenant Act and anti-discrimination statures such as Federal Housing Act. Owner acknowledges that RAB’s actions will be consistent with said laws and regulations. Owner acknowledges and agrees that neither owner nor RAG will discriminate against any person because of race, color, creed, religion, sex, sexual orientation, familial status, handicap, age or national origin. Owner’s failure to comply wherewith or with said laws and regulations shall be a basis of immediate termination of this Agreement by RAB.

Compensation

* Owner agrees to pay RAB a management fee of 10% of the revenue generated from the property described above for management.  Revenue shall include; gross rents,,  forfeited deposits, Laundry, vending machines and the sale of any personal or real property from the premises.  RAB has no account set up or vacancy fees

* Owner agrees to pay a rental commission of 8% of the lease for commercial property for a one or more year lease.  Rental commission for residential month to month agreements are equal to a one half months rent.  Rental commissions are due whether the rental resulted from Owner or RAB’s efforts.  No commission will be charged for lease renewals.

* RAB may also collect fees from tenant for other services provided, such as unlocking tenant’s door.  NSF check fees and late payment penalties will also be retained by RAB.

Liability

* Owner hereby agrees to hold RAB harmless from any and all claims, charges, debts, demands and lawsuits, including attorney’s fees related to the management of the herein described property, and from any liability for injury on or about the property which may be suffered by any employee, tenant or guest upon the property.

Terms of this Agreement

* Upon expiration of the above initial term, this Agreement shall automatically be renewed and extended for a like period of time unless terminated in writing by either party 30 day prior to the date of such renewal.

* The agreement may also be terminated by either party at any time with a 90 day written notice to the other and the payment of all fees, commissions and expenses due RAB under the terms of this Agreement.

* Should legal action or arbitration be instituted by either party to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled to its costs and reasonable attorney’s fees incurred therein.

* In the event of a dispute or disagreement concerning this Agreement or any aspect of the RAB/Owner relationship, the District or Superior Court with in King County, Washington is agreed to be the sole trial forum for resolution.

* Prior to Owner reoccupying the subject property or initiating any repairs or maintenance while this Agreement is in effect, a joint inspection by the Owner or Owner’s representative and RAB will be made.

* This Agreement shall be interpreted and enforced according to the substantive laws of the State of Washington.

* This Property Management Agreement, together with any written and signed addenda thereto, constitutes the parties’ entire agreement. Any changes or modification must be in writing and signed by the parties. This Agreement shall be binding on the parties hereto, their heirs, executor, administrator, successors, and assigns.

* Any Provision of the Agreement found to be invalid or in violation of any stature, rule , regulation, or common law shall be considered null and void, with the remaining provisions remaining valid and in effect.

* The term of this Agreement shall commence on the 1st  day of Month, 2005, and end on the 31st day of Month, 2006.

IN WITNESS WHERE OF, In consideration of the mutual promises and covenants herein contained Owner and RAB hereto hereby execute this Agreement of the date first above written

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Owners

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RAB Property Management
4500 9^th Avenue NE Suite 300
Seattle, WA 98105
(206) 633-6060