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Not expressly, however I DO probably have emails where she is telling me to pay this bill or that bill, or asking if I paid certain homeowners.
Also, she is telling me now that she wants us to sign the original contract (which benefits her, and many of the terms have been change by sheer actions and implied consent over the past year) She says if we DONT sign it, she will not honor ANY of the checks.
We did stop operating, and gave her all the invoices that correlated with the checks written. But Extortion is exactly how this feels. However, I think our position of strength are these two items. 1. She is /and needs to be a licensed realtor in order to operate this company (which means she is governed by those license requirements and 2. This account was a "trust" account, and although I took on the fiduciary responsibility of operating this account, she should have never given that responsibility to me, and I would think that she wouldn't want that information revealed.
Just to get those checks paid. I told her we are willing to sign an "exit document" and "non compete" and a "confidentiallity" agreement, but NOT go back an sign a year old document. She says until that "year old document" is signed, she will do NOTHING. - We can't pay our bills without those checks. And they are fair checks based on gross rents and maintenance done. I think what she is trying to do is pin any "losses" on us and deduct from there. But NOT credit us for the MANY more "gains". Plus, looking at the original contract, it calls for us paying more to her than we've all been operating under for the past year.
Some of these were bid jobs (approved by homeowners) the work was done, the checks issued, and she either stopped the payment or closed the account. (I haven't determined which remedy she took) But there are invoices, based on either bids or agreements.
The original agreement (that she insists now that we sign) was not an actual agreement but a "proposal".
Our original agreement (or proposal) was that we take the property management fee, then pay her 20% of that amount for the first 3 months, and 15% for each month after that until the purchase is completed. After reviewing the proposal this past week, I realized that it stated that we pay her 15% of maintenace as well. (we never did that, but she helped me figure out all the accounting each of the first 3 months, so neither one of us remembered THAT part of the proposal) We continued to pay her 20% of the p.m. fee. It also stated that either of us could end this "agreement" after written notice, which I never received (even yet today). My notice was my checks coming back unpaid. We've turned everything back over to her. She told us she would replace the checks once we got everything back to her. But . . . now she wants us to sign the original "proposal". I'm guessing her attorney told her that she doesn't have a leg to stand on without that agreement signed.
One of the checks was the April property management fee which was on average 8% of gross rents. Then we paid her 20% of that from our operating account. (this equation has been done every month for the past 11 months) I was using the word "defacto" to explain to her that this was a pattern of business that began 12 months ago.
So sorry! This response is going to be a little long. But so far, I'm in total agreement with your response and am very satisfied. Below, you will see her original response to our demand for payment, and then my response to her.
Her response to our payment demand: ( please realize the when she states "the amount you are owed" is based on her opinion or her "reconcilliation", not necessarily the amount invoiced.)
After our meeting yesterday….and after having time to think about how to “move forward” , I would like to propose the following. You were absolutely right about not having a signed contract…therefore
Option 1 We all sign the original contract as of today, or tomorrow, but an accurate date reflecting that it’s being signed now as acknowledgement that this is indeed the agreement we have been working off of since May 1, 2012. You would also be expected to sign a “cancelation” of that contract and would be paid what you are owed.
Option 2 No document governs us, therefore, you owe me nothing and I owe you nothing. Anything currently signed with Cj would stay except for the contracts on the property at 900 Hwy 24, Clearwater. That contract you can keep.
I will not work on any “reconciliation” of the books until I hear further from you on which way you would like to proceed.
Thanks for the consideration,
After considering your 2 options, we've determined that neither of those works for us, and we stand by our proposal (copied and pasted below) There are dishonored checks that we need to have honored promptly. I honestly do not want this to get any uglier than it has already become, but we will not just walk away from dishonored checks, and let it go. Again, please see below.
FACTS -The returned checks written to us totaled $3914.25One of them was for work Bob did for Jean Thompson at 1230 Rolling Oaks in the Amount of $252.06. Jean has replaced that check.It seems $40 of the $3914.25 was for Apollo snow plowing, which was an inadvertent oversight on my part.We are still owed the Placement fee of $700.00 for 1230 Rolling Oaks, less your 20% which leaves amount of $560.00 owed to us for this property placement.PROPOSAL –We will be happy to sign any exit document you have that includes a one year non compete clause for Residential property management (to include apartment bldgs, duplexes, townhouses, etc) We want to leave the option for commercial open. (the contract that you have a copy of was never used except to give my nephew a document to bring to the bank to show what his lease payment would be, it was never a fully executed contract) In return you will honor the checks written to Bob minus the $252.06 and $40.00 mentioned above. The check total would be $3622.19 plus the $560.00 for Rolling Oaks with a final total of $4182.00 You can then also cash the checks that Bob issued to you. OR you can deduct the total amount of those checks from the check you write to us, and return those checks to us.Within the "exit" document, there could be a "confidentiality agreement" that would specifically state that all business practices from the past year be kept confidential.We all can then walk away and chalk this up to a learning experience.
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