Legal Question in Real Estate Law in California
Should I pay the ' Capital Improvement' Oversight Fee?
I terminated my agreement with Property Management Co on 17 January 2003. I am not satisfied on how they handled insurance claim on my rental property, took 11 months to finally finish the repair work after the fire accident happened in the house. Everything was finally settled after I jumped in by following up daily with the insurance and the contractor (I lived out of the country when the fire accident happened). I received Closing Statement and refund of all of my money on March 23. Today I got an email from them to pay $ 800 for Capital Improvement Oversight Fee. They said there was a mistake on their part to not charge me that fee before, and the invoice was back dated April 16. I believe they made up the date because it was stated in our agreement that they can ask for any payments within 90 days from termination date. Was repair work due to fire accident classified as Capital Improvement? Our agreement stated 5% supervision fee, however, supervision and final inspection were approved by city code and insurance rep. Are they eligible for 5% supervision fee although they were not doing a good job in managing the house and supervising the work? If I don't pay them, what are my consequences? Can they put lien?
2 Answers from Attorneys
Re: Should I pay the ' Capital Improvement' Oversight Fee?
The e-mail should have a date. If they did not send the invoice to you before that, then whatever date is on the invoice does not matter.
Whether you owe the money or not depends on the terms of your agreement. You should have an attorney review the contract. The facts you gave could go either way depending on what the contract says exactly.
I do not think they can file a lien successfully. They would have to sue you, perhaps in small claims court. If they do, I suggest you offer 50% to avoid the hassle of going to court.
Re: Should I pay the ' Capital Improvement' Oversight Fee?
If the contract requires them to submit a bill to you within 90 days, it does not matter when it is dated if they did not submit it to you in that 90 day period.
From the facts presented, other than their late submission they would be due the fee.
JOEL SELIK
Attorney at Law
www.SelikLaw.com
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