Legal Question in Real Estate Law in Indiana
overcharge on management fees above contracted rate
since 1997 through march of 2002 our real estate manager has collected over $22,000.00 in management fees above the contract rate. Be states it was an oversight and now is willing to pay back amount since he was caught. my question is there legal grounds for criminal charges because of the amount involved or should i expect only to be repaid with moderate intrest. Is it customary to continue to do business with this kind of company, i have business partners willing to overlook this behavior, why...i don't know are there legal grounds for the manager to be audited without my company having to foot the bill for the audit?
2 Answers from Attorneys
Re: overcharge on management fees above contracted rate
Fire them-But get your $$$ back first. Criminal chages depend on intent-if it was inadvertant or not intentional, then there is probably no basis for criminal charges. You probably have civil damages, and there may be a bond if its a legitimate company. Seek counsel-details are important in deciding what to do
John Bator
1-317-685-2426
Re: overcharge on management fees above contracted rate
If you don't want to discharge this company's services, it is time for a change in your contract which, if the misdirection of payment was inadvertent, the management company will be willing to accede to: I recommend that you put in a specific penalty for misdirection of funds (that is failure to get your money to you or over-charging) with interest and a clause that the management company will reimburse you the cost of any audit to discover these problems. You should check with your local prosecutor to see if he is willing to seek criminal charges against the company.
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