Legal Question in Real Estate Law in Washington

I recently signed a contract with a property management company. This has been the first month our contract went into effect. The contractual terms (all their terms) were that they will deposit money into the account by the 20th. It does not say around the 20th, but on or before the 20th, however, usually the 20th is what they stressed. The 20th rolled around, and no money was deposited. I contacted the agent I'm working with who claimed they were reverting to an older system so that they were having problems with the accounting. I asked when she predicted that things would be fixed and when they would deposit the money. She patronizingly said that she already told me they were having problems and that she would call me this past Monday (I spoke to her on a Friday). Monday rolled around, and I did not get a phone call. I gave her the rest of this week to see if she would attempt communication, but she has not made an effort.

That was not the first time that she has failed to communicate. I sent her some utility information that I wanted her to address early on in the month and did not hear from her till pretty much the 3rd week of the month to which she did not give me any updates, just a, "thank you". I am not a monster client, I have e-mailed this woman 3 times and called her twice so far, and it has been very difficult to have any kind of communication with her.

I understand that companies/people run into problems sometimes. I'm even willing to let this month slide if this is a one time thing, but there is something nagging me inside that all future business will be handled in the same manner. For one, I have yet to receive any money in my account, but they have taken their fees. I didn't know that their accounting/computing system was limited only to providing clients with their funds (she told me that they were running problems with everyone's accounts so she can't just focus on my account).

I guess that lengthy back story was to see if they breached the contract first, and if so, can I get out of it and claim back all fees that they have taken? This is a one year contract and only the first month, but it has been a very unprofessional month. I guess I'm just looking for some legal advice as to what my rights are and what my actions should be. Any help would be greatly appreciated.

Thank you.

p.s.

I apologize ahead of time if I sent it to the wrong branch of law request. I wasn't sure where I qualified.


Asked on 10/29/11, 1:29 am

1 Answer from Attorneys

Jonathan Baner Baner & Baner

Of course everything I state must be prefaced with the fact that it is absolutely impossible to give an accurate or even appropriate answer to a contract question without actually seeing the contract. However, since I have seen these property management contracts before let me state a few things.

1. As a contract for services the common law governs the legal issues of the contract as supplemented by Washington state law (judicial and legislative) on the subject.

2. The Consumer Protection Act of Washington is "in play" although not greatly.

3. The contract has most likely been breached by the failure to adhere to the specific promises of the contract (which terms, specifically, I can only assume relate to the time of payment, a "best efforts" or "good faith" provision may be breached as well, and other terms of which are unknown.

4. The degree of the breach is what is at issue primarily: is it a minor breach where you may only recover damages, or a major breach where you may recover damages and rescind the contract.

I know that doesn't help much, but without seeing the contract it really is difficult to do anything other than make statements that are greatly vague or hedged.

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Answered on 10/29/11, 9:17 am


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