Licensed Real Estate Broker/Property Manager Property ... · Owner’s Initials _____ 1 Rev....
Transcript of Licensed Real Estate Broker/Property Manager Property ... · Owner’s Initials _____ 1 Rev....
Owner’s Initials ______
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Rev. 03/25/2016
Licensed Real Estate Broker/Property Manager
California Broker License # 01900469
Property Management Agreement
THIS PROPERTY MANAGEMENT AGREEMENT (hereinafter referred to as the “Agreement”) entered
into this _____day of_________________2016 by and between Azari Property Management, (hereinafter
referred to as “Agent”) and ________________________________________________, (hereinafter referred to
as “Owner”) of the property located at: _________________________________, in the City of
_______________________________, State of California, Zip Code ______________ (Hereinafter referred to
“Property”).
1. AGENCY: The Owner hereby employs the Agent as the sole and exclusive leasing and managing Agent for
the Property, and Agent hereby accepts such appointment under the following terms and conditions.
2. TERM OF AGREEMENT: This contract shall continue for a period of One (1) year from the date hereof,
and shall be guaranteed renewable automatically by the property manager as long as the Tenant introduced or
originally contracted through AZARI PROPERTY MANAGEMENT is occupying the Property. Property
management contract shall be active per renewal of the lease agreements with current Tenant. Should there not
be a lease renewal or a non-property management introduced Tenant occupying leased space, or agent is
deemed incompetent, the Owner can terminate the contract after a period of one (1) year without any financial
obligation to agent upon delivery of written notice to Azari Property Management. With respects
to Tenant Acquisition only, if cancellation by Owner is without cause and Agent has done all due diligence to
find a suitable Tenant, Owner shall pay Agent the cancellation fee of 35% of the market monthly lease. A
competent agent is regarded as an agent that performs his or her duties on behalf of the Owner in a timely and
expected manner such as, providing clear and concise written communication with all involved contracted
parties. Performing such duties in a timely and expected manner also include but are not limited to: finding a
qualified Tenant, collecting rent and any specified monetary amounts due to the Owner, providing accounting
statements and balances, scheduling and/or following through with any maintenance/repairs to property,
proceeding with legal action, perform annual property inspection, and posting advertisements
(www.craigslist.org, Azari Property Management website, professional property managers association).
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3. MANAGEMENT SERVICES: Agent will provide the following services in the name of and on behalf of
the Owner, and the Owner hereby grants Agent the authority and powers required to perform these services:
A. Diligent Efforts: The Agent shall use diligent efforts to obtain a suitable Tenant, as soon as
possible, at as monthly rate of $___________________, but not less than $ __________________. Owner will
have final approval on the negotiated lease amount.
B. Lease Negotiations: The Agent shall handle all negotiations with the Tenant with respect to leases.
Agent shall handle all negotiations with the Tenant and the prospective Tenant. Upon execution of a lease,
Agent shall collect from the Tenant all prorated rents plus a refundable Security Deposit. The Tenant’s Security
Deposit will be transferred to the Owner and the Owner is responsible to maintain Tenant’s Security Deposit
and pay the interest to the Tenant if required by the Law. Owner shall notify Agent in writing at least sixty (60)
days prior to the expiration of any lease of his intent to return to or sell said property so that Agent may restrict
re-rental to a month to month contract. Unless specifically advised in writing by Owner, Agent is to re-lease
property upon expiration of any lease or extension thereto.
C. Advertising: Agent shall advertise such Property as is available for rent and arrange for such ads,
signs, photographs, MLS Listings and other forms of advertising as many appear advisable. Owner agrees to
pay for all advertising costs above and beyond the Agent sites or any other internet sites that Agent uses with
prior approval from the Owner.
D. Collection of Rents: The Agent shall collect the rents and other income from the property promptly
when such amounts come due, taking all necessary steps to collect same and performing all reasonable acts on
behalf of the Owner for the protection of the Owner in collection of such amounts.
E. Accounting Statements and Balance: Agent shall provide the Owner with a monthly statement of
receipts and disbursements incurred in the management of the Property.
F. Accounting Statements and Disbursement of Funds: Agent may withdraw from the Owner’s
account all disbursements, which Agent may make pursuant to the Agreement and which are to be made at the
expense of the Owner, including any compensation which becomes due and owing to Agent as set forth in this
agreement. Azari Property Management will accept to make any payment on behalf of the Owner, from
Owner’s account towards any vendor (such as utilities or gardening) with an hourly rate of $60.00. If the
particular property has a home warranty in place, Azari Property Management will attempt to correct reported
issues through the home warranty prior to exercising any other options.
G. No Advancement of Funds: The agent shall not be required to advance any monies for the care,
repair, upkeep, or management of the Property and the Owner agrees to advance all monies necessary for those
purposes. The Agent reserves the right to attach a lien against the real property and rents collected or to be
collected under the lease for any advances and expenditures made by the Agent for the benefit of said Owner
and the real property with improvements thereon for which Owner does not thereafter reimburse.
H. Maintenance of the Property: The Agent shall contract for or undertake the making of all necessary
repairs and the performance of all other necessary work for the benefit of the property including all required
alterations to properly carry out this contract. Agent shall make no improvements, alterations, or repair work
costing more than $250.00 without the prior authorization of the Owner. Agent is authorized to make
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emergency repairs in order to keep the Property habitable according to Department of Real Estate regulations.
Agent shall take reasonable precautions to safeguard the Property and its contents; however, it is agreed that
Agent shall not be held liable for the cost of replacement of Owner’s personal property in case of theft or
vandalism. Owner shall not hold Agent responsible for the maintenance or upkeep of the yard or lawn. Agent
shall not make, or cause to be made, any emergency or normal expenditure for the repair, maintenance or
upkeep of the Property which will be in excess of the balance in Owner’s account unless and until the additional
funds needed to complete the work are received by Agent from Owner.
Agent will perform annual inspection on property to ensure the property is well maintained by Tenant.
Agent’s in house maintenance team would perform their daily duties under management of John Evangelatos,
California General Contractor License # 950571, Luzon Construction Management to ensure all managed
properties are receiving the most cost and quality effective maintenance and project management services. John
Evangelatos is also a Corporate Officer of The Azari Group, Inc. Owner’s Initials _________
I. Legal Proceeding: With prior approval from the Owner, the agent shall have the authority to sign and
serve notices and terminate tenancies as deemed reasonable by Agent and to initiate and prosecute eviction
actions to remove Tenant and recover possession of the Property. Agent is further authorized to sue for and
recover rent and when expedient, to compromise, settle, and release such actions or suits or reinstate such
tenancies. Owner agrees to reimburse Agent for all expenses of litigation including attorney’s fees, filling fees,
and court costs which Agent does not recover from Tenant. Owner agrees that such legal actions may be filed in
Owner’s name, and all above will be communicated to Owner as soon as any situation is started.
J. Special Services: Owner agrees to pay Agent twenty (20%) percent project management fee for any
modernization, redecoration, and improvement, major repair, and alteration, maintenance beyond regular wear
and tear of the Property or work Agent performs at Owner’s request or required as emergency service. The
Owner acknowledges that if he/she was referred to the Agent by an outside third-party, Agent may compensate
the third-party for their referral. If Owner requests that Agent perform services such as filing police reports,
which are in addition to the services set forth herein, Owner agrees to pay Agent a fee of seventy five ($75.00)
dollars per hour to perform such services.
4. OWNER’S OBLIGATIONS: Owner agrees to provide all necessary documents and records and fully
cooperate with Agent in all matters with respect to this Agreement as set forth herein, including but not limited
to the following:
A. Indemnification: Owner shall indemnify and hold Agent and its employees, Agents, officers and
directors harmless from liability for any and all claims, costs, suits and damages, including attorney’s fees,
arising directly or indirectly out of or in connection with the management and operation of the Property, and
from liability or injuries suffered by any person relating to the Property. The duty to indemnify Agent extends
to any acts or omissions, statements, or representations made by Agent in the performance or non-performance
of Agent’s duties and relating to all contractual liabilities that may be alleged or imposed against Agent.
Owner’s duty to indemnify shall survive not more than 24 months after the termination of this agreement. Agent
shall have no responsibility for personal property, furniture and furnishings contained in the Property.
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B. Insurance: Owner shall carry, at his own expense, public liability and extended coverage insurance
and other such insurance as may be necessary or appropriate. Such insurance policy shall name Owner and
Agent as insured, and their coverage shall be adequate to protect the interests of both parties in form, substance
and amounts reasonably satisfactory to Agent. Owner agrees to provide Agent with copy of the declaration page
or duplicate copies of such documents within 30 days from the date of this Agreement. Said policies shall
provide that the Notice of Default or Cancellation will be sent to Agent as well as Owner. If the Property is
covered by a blanket policy with a condominium Homeowners Association, Owner shall provide Agent with
information regarding this policy, including, but not limited to, all information necessary to file a claim.
C. Warranties: Owner shall provide Agent with a copy of all current warranties on installed
equipment and any service agreements and the names of those authorized to perform warranty repairs. If Owner
fails to provide Agent with a copy of such warranties and the identity of those authorized to make warranty
repairs, Owner agrees to pay for work performed by an independent contractor hired to make such repairs.
Additionally, Owner shall be solely responsible for conducting the initial inspection and walk-thru of newly
constructed properties and providing the builder with a list of needed repairs. Owner shall also be responsible
for ensuring that the builder makes all repairs listed on the initial walk-thru list.
D. Compliance with Laws: Owner agrees to comply with or abide by any law prohibiting, or making
illegal, discrimination on the basis of race, sex, creed, color, religion, national origin, familial status, or mental
or physical handicap. If Owner shall fail or refuse to comply with or abide by any rule, order, determination,
ordinance or law of any federal, state or municipal authority, or fail to authorize expedient repair or replacement
of equipment necessary for the health, safety or welfare of Tenant, Agent, upon giving twenty-four (24) hours
written notice may terminate this agreement.
E. Signage/Presentation: Owner agrees to allow Agent to post “For Rent” signs on the Property which
comply with local zoning and /or county regulations and association CC&Rs. If Property is located in an area
where signage is prohibited or restricted it is the Owners responsibility to notify Agent. Owner further agrees if
the property fails to meet Agent’s criteria for presentation; the property may be temporarily removed from the
market, until the necessary work and/or cleaning is preformed.
5. Compensation: Owner agrees to pay Agent, as compensation for the services provided herein, the following:
A. A non-refundable setup fee of $99.00.
B. Monthly property management fee, including tenant acquisition fee, of 7% for condominiums, 9%
for houses; Minimum monthly fee of $150.00, additional fee for furnished and short term contracts (less
than 6 months), 9% for furnished & short-term contracts condominiums, 11% for furnished and short-
term contracts houses.
C. Preparation and negotiation of any Addendum requested by Owner/landlord to the current/effective
lease, or any subsequent lease, will be completed at a charge of $100.00 per Addendum.
D. $500.00 for each lease renewal with existing Tenant.
The agents fees as described in Clause 5B, 5C and 5D will be netted out of each subsequent monthly
gross rent collected.
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The Agent will wire the net monthly lease payment to the property Owner’s bank account on the third
business day of each month and no later than the fifth business day during the term of the lease agreement with
the Tenant upon receipt payment from the Tenant.
6. Independent Contractors/Vendors: Agent is authorized to hire, discharge, supervise and pay all
independent contractors and vendors on behalf of Owner as required for the operation and management of the
Property. It is Agent’s policy to only recommend and hire those that are licensed, bonded, certified and insured
in the State of California. Agent shall not be held liable for the acts or omissions of any employee, independent
contractor or any other person hired to do repair work on the Property. If Owner decides to hire a
contractor/vendor who is not recommended or otherwise approved by Agent, Owner shall be required to
contact, hire, supervise and pay said contractor / vendor directly. Agent shall not be responsible for any act or
omission of Owner’s contractor/ vendor. If the particular property has a home warranty in place, Azari Property
Management will attempt to correct reported issues through the home warranty prior to exercising any other
options.
7. Selling the Property: If the Owner sells the Property prior to termination of this Agreement, Agent may, if
requested by Owner, represent Owner in connection with the sale. Owner shall pay Agent all management fees
which would have accrued through the end of the term of the lease, or in the event of a month-to-month
tenancy, all management fees which would have accrued through the expiration of the thirty (30) days
following notice of Owner’s intention to sell the property. Agent reserves the right to withdraw from the
Management of the Property if Owner lists the property with another real estate company.
8. Tenant Eviction Protection Plan - TEPP:
_______ (Initial) Yes ________ (Initial) No
For eviction services, $15.00 per month per unit managed for which Agent agrees to pay legal fees and court
costs in connection with an unlawful Detainer Action for all Tenants placed in the property by Azari Property
Management. Note that if the Tenant requests and is granted a jury trial for the Unlawful Detainer Action, the
Owner agrees that Azari Property Management will not be held responsible to pay any costs incurred to litigate
this case.
For eviction services for existing Tenant: In the event an Unlawful Detainer Action is necessary within the first
on hundred eighty (180) days of this Agreement, for a Tenant that was in the property prior to the
commencement of this Agreement, the Owner agrees that they shall be responsible for all expenses incurred in
connection with the Unlawful Detainer Action. If the property is vacant when this Agreement begins this does
not apply.
If the Owner chooses to not participate in the Tenant Eviction Protection Plan, the Owner will be responsible
for all charges associated with the eviction of the Tenants.
*** Agent reserves the right to refuse providing TEPP to any existing tenant upon executing this contract or
new tenant upon approving applications. This plan would not be applicable if there
arises a discrepancy between the landlord and the tenant because of any structural permit or construction
issues. Maximum amount paid by Azari Property Management for Unlawful Detainer Action and/or legal fees
shall not exceed $1,500.00.
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9. Entire Agreement: This Agreement comprises the entire Agreement between the parties hereto and
supersedes and replaces any and all previous Brokerage/Management Agreement entered into and/or negotiated
between Owner and Agent relating to the Property and any prior discussions or negotiations, whether oral or in
writing. Each party to this Agreement hereby acknowledges and agrees that the other party has made no
warranties, representations, covenants or agreements, expressed or implied, to such party other than those
expressly set forth herein. All terms and conditions of this Agreement shall be binding upon the parties hereto
and their respective successors and assigns. This Agreement may not be modified or amended except by written
agreement of the parties. As evidenced by the signatures below, the Parties have read and agree to the
terms and conditions set forth in this contract.
*Primary Owner-Print: ________________________________________ Signature: __________________
Date: __________________ *Primary Tax ID: _______________________Phone # __________________
Email Address: __________________________________________________________________________
* _______________________________,___________________________,___________,____________
Mailing / Forwarding Address City State Zip Code
*Owner is US Citizen (initial where applicable):
_______Yes
_______No
*Owner is US Resident (initial where applicable):
_______Yes
_______No
*** Should Owner be considered Foreign Person by IRS, the property manager should withhold thirty percents
(30%) of the gross rental receipts and remit the funds to the IRS. For additional info, please refer to:
http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Persons-Receiving-Rental-Income-From-U.S.-
Real-Property
*Owner is CA Resident (initial where applicable):
_______Yes
_______No
*How did you find out about us?_____________________________________________________________
Agent Name: __________________________Signature: _________________________Date: ______________
Owner’s Initials_________
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Licensed Real Estate Broker/Property Manager
RENTAL PROPERTY INFORMATION QUESTIONNAIRE
___________________________________________, ________________________ ,________ ,_______________
Property Street Address City State Zip Code
1. Desire Rental Rate $____________________
2. Required Security Deposit $_________or ______ times rent.
3. Date Available ________________________
4. Neighborhood_________________________________________
GENERAL PROPERTY INFORMATION:
5. Type of Rental: (Please Circle) House Condo Townhouse Mobile Home Duplex Other:___________
6. Sq. Ft. _____________
7. Bedrooms ___________ Baths _____________ Stories _________
8. Year built_____________
9. Are all portions of the property constructed with permits and in compliance with local codes and ordinance? (Please
circle) Yes No ____If No, explain__________________________________________________________
10. Home warranty: (Please circle) Yes No If yes please provide necessary information:
_____________________________________________________________________________________________
11. Pets Allowed: Yes No If Yes: Type(s):_____________________ Weight Limit: __________
12. Smokers Allowed: (Please circle) Yes No
13. Is the Property subject to any pending legal action or foreclosure? Yes No
If Yes, please explain: _______________________________________________________________________________
14. Is the Property under any Government City/County restrictions (like Ellis Act, BMR): Yes No
If yes, please explain:
________________________________________________________________________________
15. Is the Property Governed by an Association: Yes No
If yes, Association Name: ________________________________________Assn. Mgmt. Phone: _____________________
Assn Contact Person: _____________________________ HOA Move-In Fees: Yes (Amount: _____________) No
Special HOA Move-In Procedures:________________________________________________________________________
*Copy of CC&R’s/Rules & Regulations: Yes No (You must provide a copy for prospective tenant-soft copy preferable)
16. Insurance Company: ______________________________________ Policy No. ________________________________
Agent: ________________________________________________________Phone No. _____________________________
17. Fireplaces: Yes No Operable: Yes No Location ________________________ Last Service date ____________
Allowed for Tenant to use: Yes No To be maintained by: Owner Tenant
18. Gated Community: Yes No Code: ______________________ Guarded: Yes No
19. Pool (Please Circle): Yes No If Yes: Community Private
Spa: Yes No Recreational Facility: Yes No (Include keys if applicable) Spa/Pool Service Included: Yes No
Owner’s Initials_________
Rev 03/24/16
20. Mailbox # _________ (Please include keys if applicable)
21. Storage Areas (Please Circle): Yes No If yes, please explain location/#: _____________________________________
22. Type of Flooring: Hardwood Concrete Tile Carpet Other: _________________________________________
*If applicable please explain care of flooring: ________________________________________________________________
23. Parking: (Please circle) Private Garage # of Cars ______ Covered Parking Carport Other: __________________
Assigned Spot # or area:_________________________________Other:___________________________________________
24. Garage Door Openers: Yes No How many to be provided to Tenant: ____ Code (if applicable) #:__________
25. Landscaping: (Please circle)
Front yard: Grass Desert None Other: _____________________________________________________________
Backyard: Grass Desert None Other: ______________________________________________________________
Services included - Gardener: Yes No Other: _____________________________________________________________
Sprinklers: Yes No Location of shut off: _____________________________________________________________
26. Is front yard fully fenced: Yes No Is back yard fully fenced: Yes No
27. Appliances: (Please circle all provided)
Refrigerator: Normal Side-by-Side Side-by-Side w/ water & ice Other: ____________________________________
Stove: Yes No (Gas or Electric) Microwave: Yes No Dishwasher: Yes No Disposal: Yes No Compactor: Yes No
Washer: Yes No (Gas or Electric) Dryer: Yes No (Gas or Electric) Hook ups only: Gas or Electric
How old are the appliances?__________ Are the appliances under warranty?______________________________________
If yes, warranty information______________________________________________________________________________
If Appliances info (brand, model, measurements, etc.) available? Yes No If yes, please attach.
28. Operable Smoke Detectors: Yes No How many/location(s)? ___________________________________________
29. Carbon Monoxide Detector? Yes No Location(s): ____________________________________________________
30. Security Alarm: Yes No
If Yes: Company ___________________________Phone________________________ Paid by: Owner Tenant
31. Main Water Turnoff Location: ____________________________ Location of GFI Reset: _______________________
Upon finding a tenant (s):
32. Utilities: (Please circle)
PG&E: Owner Tenant
Garbage: Owner Tenant Service Company Name_______________________*Pick Up Day: __________________
Water: Owner Tenant Service Company Name_______________________
Gardener: Owner Tenant Name_________________________Contact__________________________________
Cable: Owner Tenant Allowed providers________________________________________________________
Internet: Owner Tenant Allowed providers__________________________________________________________
Any allocation or proration of utilities: _____________________________________________________________________
_____________________________________________________________________________________________________
Owner’s Initials_________
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33. Keys: Please list/specify all keys, remotes, FOBs, etc. that will be provided to tenant(s)___________________________
_____________________________________________________________________________________________________
34. Existing Tenant(s) (if any):
Name(s): ________________________________Phone:____________________________Email:______________________
35. Please list any additional information or conditions affecting the property that the prospective tenant should know:
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
36. Please list any unusual/additional lease terms/conditions you would like to have imposed to the prospective tenant:
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
37. Please list any known maintenance issues on the property__________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
____________________________________________________________________________________________________
38. Signs/Flyers:
Is street sign allowed to be posted in front (side/back) of the property: Yes No
Is sign allowed to be posted at the window of the property: Yes No
Is marketing flyer allowed to be posted in the Common Area of the building: Yes, Location:_________ No
Comments:______________________________________________________________________________
39. How did You find us (Please Circle):
Online Search (please name the Search Engine if possible) ______________________________________________
Referral (please name the source) _________________________________________________________________
Contacted by APM Representative (please name the Representative) _____________________________________
Media Advertisement (please name the source)_______________________________________________________
Other:_________________________________________________________________________________________
40. Emergency Contact (other than Owner):
Name: __________________ Phone: _______________ Relationship: ____________E-mail: ___________________
Owner (Print name)___________________________________Signature____________________Date____________
Licensed Real Estate Broker/Property Manager
CHECKLIST
Property Address:_____________________________________________________________
How did you find out about us?___________________________________________________
This checklist is to assist you in completing the process of contracting with Azari Property
Management. All applicable items must be included before we can complete the contract.
___ 1. Management Agreement – Signed and completed including Social Security numbers and
contact numbers for all owners.
___ 2. Form 590 OR 587 completed and signed by Primary Owner.
*** If you ARE California Resident, please complete only form 590. If you are NOT CA Resident, please
complete only form 587.
___ 3. Automatic Deposit - include voided check if account that the monthly rent distribution is
deposited to, differs from checking account used to pay maintenance reserve.
___ 4. $99.00 check payable to Azari Property Management for setup fee.
___ 6. House/condominium Keys – minimum 3 copies of each. Please list all keys provided:
___________________________________________________________________________________
_________________________________________________________________________
___ 7. Mailbox Keys – minimum 2 copies
___ 8. Pool/Community Room Keys – minimum 2 copies.
___ 9. Pedestrian Gate Key – minimum 2 copies.
___ 10. Garage Remote (s)- minimum of 2.
___ 11. Gate Remote (s) – minimum of 2.
___ 12. Gate Card (s) – minimum of 2.
___ 13. CC&R and House Rules (applies to Condominiums only) - 1 copy (soft copy is preferable)
___ 14. Certificate of Insurance evidencing coverage with Azari PM added as additional insured
___ 15. Warranty – If this is a new home, please provide the building warranty information. If you
have purchased a home warranty, please provide a copy.
___ 16. Pool Service Company Name ________________________________________
___ 17. Landscaping Company Name _______________________________________
___ 18. Is power service currently on? Yes or No Phone number ________________________
___ 19. Is water service currently on? Yes or No Phone number _________________________
Form 590 C2 20157061163
Withholding Exemption CertificateTAXABLE YEAR
2016CALIFORNIA FORM
590
Exemption ReasonCheck only one reason box below that applies to the payee.By checking the appropriate box below, the payee certifies the reason for the exemption from the California income tax withholding requirements on payment(s) made to the entity or individual.
Individuals — Certification of Residency: I am a resident of California and I reside at the address shown above. If I become a nonresident at any time, I will promptly
notify the withholding agent. See instructions for General Information D, Definitions. Corporations: The corporation has a permanent place of business in California at the address shown above or is qualified through the
California Secretary of State (SOS) to do business in California. The corporation will file a California tax return. If this corporation ceases to have a permanent place of business in California or ceases to do any of the above, I will promptly notify the withholding agent. See instructions for General Information D, Definitions.
Partnerships or Limited Liability Companies (LLCs): The partnership or LLC has a permanent place of business in California at the address shown above or is registered with the
California SOS, and is subject to the laws of California. The partnership or LLC will file a California tax return. If the partnership or LLC ceases to do any of the above, I will promptly inform the withholding agent. For withholding purposes, a limited liability partnership (LLP) is treated like any other partnership.
Tax-Exempt Entities: The entity is exempt from tax under California Revenue and Taxation Code (R&TC) Section 23701 ______ (insert letter) or
Internal Revenue Code Section 501(c) _____ (insert number). If this entity ceases to be exempt from tax, I will promptly notify the withholding agent. Individuals cannot be tax-exempt entities.
Insurance Companies, Individual Retirement Arrangements (IRAs), or Qualified Pension/Profit-Sharing Plans: The entity is an insurance company, IRA, or a federally qualified pension or profit-sharing plan. California Trusts: At least one trustee and one noncontingent beneficiary of the above-named trust is a California resident. The trust will file a
California fiduciary tax return. If the trustee or noncontingent beneficiary becomes a nonresident at any time, I will promptly notify the withholding agent.
Estates — Certification of Residency of Deceased Person: I am the executor of the above-named person’s estate or trust. The decedent was a California resident at the time of death.
The estate will file a California fiduciary tax return. Nonmilitary Spouse of a Military Servicemember: I am a nonmilitary spouse of a military servicemember and I meet the Military Spouse Residency Relief Act (MSRRA)
requirements. See instructions for General Information E, MSRRA.
CERTIFICATE OF PAYEE: Payee must complete and sign below.
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov and search for privacy notice. To request this notice by mail, call 800.852.5711.
Under penalties of perjury, I hereby certify that the information provided in this document is, to the best of my knowledge, true and correct. If conditions change, I will promptly notify the withholding agent.
Type or print payee’s name and title ___________________________________________________ Telephone (_____)___________
Payee’s signature _______________________________________________________________ Date ______________________
The payee completes this form and submits it to the withholding agent. The withholding agent keeps this form with their records.
Withholding AgentName
PayeeName SSN or ITIN FEIN CA Corp no. CA SOS file no.
Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.) State ZIP code
The Azari Group Real Estate, Inc.
Form 590 Instructions 2015 Page 1
2016 Instructions for Form 590Withholding Exemption CertificateReferences in these instructions are to the California Revenue and Taxation Code (R&TC).
General InformationRegistered Domestic Partners (RDP) – For purposes of California income tax, references to a spouse, husband, or wife also refer to a Registered Domestic Partner (RDP) unless otherwise specified. For more information on RDPs, get FTB Pub. 737, Tax Information for Registered Domestic Partners.
A PurposeUse Form 590, Withholding Exemption Certificate, to certify an exemption from nonresident withholding. Form 590 does not apply to payments of backup withholding. For more information, go to ftb.ca.gov and search for backup withholding. Form 590 does not apply to payments for wages to employees. Wage withholding is administered by the California Employment Development Department (EDD). For more information, go to edd.ca.gov or call 888.745.3886.Do not use Form 590 to certify an exemption from withholding if you are a Seller of California real estate. Sellers of California real estate use Form 593-C, Real Estate Withholding Certificate, to claim an exemption from the real estate withholding requirement.The following are excluded from withholding and completing this form:• The United States and any of its agencies or
instrumentalities. • A state, a possession of the United States,
the District of Columbia, or any of its political subdivisions or instrumentalities.
• A foreign government or any of its political subdivisions, agencies, or instrumentalities.
B Income Subject to Withholding
California Revenue and Taxation Code (R&TC) Section 18662 requires withholding of income or franchise tax on payments of California source income made to nonresidents of California.Withholding is required on the following, but is not limited to:• Payments to nonresidents for services
rendered in California.• Distributions of California source income
made to domestic nonresident partners, members, and S corporation shareholders and allocations of California source income made to foreign partners and members.
• Payments to nonresidents for rents if the payments are made in the course of the withholding agent’s business.
• Payments to nonresidents for royalties from activities sourced to California.
• Distributions of California source income to nonresident beneficiaries from an estate or trust.
• Endorsement payments received for services performed in California.
• Prizes and winnings received by nonresidents for contests in California.
However, withholding is optional if the total payments of California source income are $1,500 or less during the calendar year.For more information on withholding get FTB Pub. 1017, Resident and Nonresident Withholding Guidelines. To get a withholding publication, see Additional Information.
C Who Certifies this Form Form 590 is certified by the payee. California residents or entities exempt from the withholding requirement should complete Form 590 and submit it to the withholding agent before payment is made. The withholding agent is then relieved of the withholding requirements if the agent relies in good faith on a completed and signed Form 590 unless notified by the Franchise Tax Board (FTB) that the form should not be relied upon.An incomplete certificate is invalid and the withholding agent should not accept it. If the withholding agent receives an incomplete certificate, the withholding agent is required to withhold tax on payments made to the payee until a valid certificate is received. In lieu of a completed exemption certificate, the withholding agent may accept a letter from the payee as a substitute explaining why they are not subject to withholding. The letter must contain all the information required on the certificate in similar language, including the under penalty of perjury statement and the payee’s taxpayer identification number. The withholding agent must retain a copy of the certificate or substitute for at least four years after the last payment to which the certificate applies, and provide it upon request to the FTB.If an entertainer (or the entertainer’s business entity) is paid for a performance, the entertainer’s information must be provided. Do not submit the entertainer’s agent or promoter information. The grantor of a grantor trust shall be treated as the payee for withholding purposes. Therefore, if the payee is a grantor trust and one or more of the grantors is a nonresident, withholding is required. If all of the grantors on the trust are residents, no withholding is required. Resident grantors can check the box on Form 590 labeled “Individuals — Certification of Residency.”
D DefinitionsFor California non-wage withholding purposes, nonresident includes all of the following:• Individuals who are not residents of
California.• Corporations not qualified through the
California Secretary of State (CA SOS) to do business in California or having no permanent place of business in California.
• Partnerships or limited liability companies (LLCs) with no permanent place of business in California.
• Any trust without a resident grantor, beneficiary, or trustee, or estates where the decedent was not a California resident.
Foreign refers to non-U.S.For more information about determining resident status, get FTB Pub. 1031, Guidelines for Determining Resident Status. Military servicemembers have special rules for residency. For more information, get FTB Pub. 1032, Tax Information for Military Personnel.Permanent Place of Business:A corporation has a permanent place of business in California if it is organized and existing under the laws of California or it has qualified through the CA SOS to transact intrastate business. A corporation that has not qualified to transact intrastate business (e.g., a corporation engaged exclusively in interstate commerce) will be considered as having a permanent place of business in California only if it maintains a permanent office in California that is permanently staffed by its employees.
E Military Spouse Residency Relief Act (MSRRA)
Generally, for tax purposes you are considered to maintain your existing residence or domicile. If a military servicemember and nonmilitary spouse have the same state of domicile, the MSRRA provides: • A spouse shall not be deemed to have lost
a residence or domicile in any state solely by reason of being absent to be with the servicemember serving in compliance with military orders.
• A spouse shall not be deemed to have acquired a residence or domicile in any other state solely by reason of being there to be with the servicemember serving in compliance with military orders.
Domicile is defined as the one place: • Where you maintain a true, fixed, and
permanent home. • To which you intend to return whenever you
are absent.
Page 2 Form 590 Instructions 2015
The payee must notify the withholding agent if any of the following situations occur:• The individual payee becomes a nonresident.• The corporation ceases to have a permanent
place of business in California or ceases to be qualified to do business in California.
• The partnership ceases to have a permanent place of business in California.
• The LLC ceases to have a permanent place of business in California.
• The tax-exempt entity loses its tax-exempt status.
If any of these situations occur, then withholding may be required. For more information, get Form 592, Resident and Nonresident Withholding Statement, Form 592-B, Resident and Nonresident Withholding Tax Statement, and Form 592-V, Payment Voucher for Resident and Nonresident Withholding.
Additional InformationFor additional information or to speak to a representative regarding this form, call the Withholding Services and Compliance telephone service at:Telephone: 888.792.4900 916.845.4900 Fax: 916.845.9512OR write to: WITHHOLDING SERVICES AND
COMPLIANCE MS F182 FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651
You can download, view, and print California tax forms and publications at ftb.ca.gov.OR to get forms by mail write to: TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD PO BOX 307 RANCHO CORDOVA CA 95741-0307
For all other questions unrelated to withholding or to access the TTY/TDD numbers, see the information below.Internet and Telephone AssistanceWebsite: ftb.ca.gov Telephone: 800.852.5711 from within the
United States 916.845.6500 from outside the
United StatesTTY/TDD: 800.822.6268 for persons with
hearing or speech impairmentsAsistencia Por Internet y Teléfono Sitio web: ftb.ca.gov Teléfono: 800.852.5711 dentro de los
Estados Unidos 916.845.6500 fuera de los Estados
Unidos TTY/TDD: 800.822.6268 para personas con
discapacidades auditivas o del habla
A military servicemember’s nonmilitary spouse is considered a nonresident for tax purposes if the servicemember and spouse have the same domicile outside of California and the spouse is in California solely to be with the servicemember who is serving in compliance with Permanent Change of Station orders.California may require nonmilitary spouses of military servicemembers to provide proof that they meet the criteria for California personal income tax exemption as set forth in the MSRRA.Income of a military servicemember’s nonmilitary spouse for services performed in California is not California source income subject to state tax if the spouse is in California to be with the servicemember serving in compliance with military orders, and the servicemember and spouse have the same domicile in a state other than California.For additional information or assistance in determining whether the applicant meets the MSRRA requirements, get FTB Pub. 1032.
Specific Instructions Payee InstructionsEnter the withholding agent’s name. Enter the payee’s information, including the taxpayer identification number (TIN) and check the appropriate TIN box.You must provide an acceptable TIN as requested on this form. The following are acceptable TINs: social security number (SSN); individual taxpayer identification number (ITIN); federal employer identification number (FEIN); California corporation number (CA Corp no.); or CA SOS file number.Private Mail Box (PMB) – Include the PMB in the address field. Write “PMB” first, then the box number. Example: 111 Main Street PMB 123.Foreign Address – Follow the country’s practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes. Do not abbreviate the country name.Exemption Reason – Check the box that reflects the reason why the payee is exempt from the California income tax withholding requirement.
Withholding Agent InstructionsKeep Form 590 for your records. The certification remains valid for 5 years or until the payee’s status changes. Do not send this form to the FTB unless it has been specifically requested. For more information, contact Withholding Services and Compliance, see Additional Information.
Form 587 C2 2015
Part IV Income AllocationGross payments expected from the withholding agent during the calendar year for: (a) Within California (b) Outside California (c) Total payments1 Goods and services: Goods/materials (no withholding required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
___________________________
Services (withholding required) . . . . . . . . . . . . ___________________________ ___________________________ ___________________________2 Rents or lease payments . . . . . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________3 Royalty payments . . . . . . . . . . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________4 Prizes and other winnings . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________5 Other payments . . . . . . . . . . . . . . . . . . . . . . . . . . ___________________________ ___________________________ ___________________________6 Total payments subject to withholding . Add column (a), line 1 through line 5 . . . . . . . ___________________________ ___________________________ ___________________________
Nonresident withholding threshold amount: . . . $1,500 .00
Backup withholding threshold amount: . . . . . . . $0 .00
Nonresident Withholding Allocation Worksheet
CALIFORNIA FORM
587
7041163
TAXABLE YEAR
2016The payee completes this form and returns it to the withholding agent.Part I Withholding AgentWithholding agent’s name
Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.) State ZIP code
Certification of Nonresident Payee
Sign Here
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb .ca .gov and search for privacy notice . To request this notice by mail, call 800 . 852 .5711 . Under penalties of perjury, I certify that the information provided on this document is true and correct . If the reported facts change, I will promptly inform the withholding agent .
Print or type payee’s name Telephone
( )Payee’s signature
Date
Print or type representative’s name and title Telephone
( )Authorized representative’s signature
Date
Part II Nonresident PayeePayee’s name m SSN or ITIN m FEIN m CA Corp no. m CA SOS file no.
Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.) State ZIP code
Nonresident payee’s entity type: (Check one)
m Individual/sole proprietor m Corporation m Partnership m Limited liability company (LLC) m Estate or trust
Part III Payment Type
Nonresident payee: (Check one)m Performs services totally outside California (no withholding required, skip to m Provides goods and services in California (see Part IV, Income Allocation) Certification of Nonresident Payee) m Provides services within and outside California (see Part IV, Income Allocation)m Provides only goods or materials (no withholding required, skip to m Other (Describe)___________________________________________ Certification of Nonresident Payee)
If the nonresident payee performs all the services within California, withholding is required on the entire payment for services unless the payee is granted a withholding waiver from the Franchise Tax Board (FTB) . For more information, get FTB Pub . 1017, Resident and Nonresident Withholding Guidelines .
The Azari Group Real Estate, Inc.
521 Gough Street
San Francisco CA 94102
2016 Instructions for Form 587Nonresident Withholding Allocation WorksheetReferences in these instructions are to the California Revenue and Taxation Code (R&TC).
General InformationBackup Withholding – With certain limited exceptions, payers that are required to withhold and remit backup withholding to the Internal Revenue Service (IRS) are also required to withhold and remit to the Franchise Tax Board (FTB) on income sourced to California . The California backup withholding rate is 7% of the payment . For California purposes, dividends, interests, and any financial institution’s release of loan funds made in the normal course of business are exempt from backup withholding . For more information, go to ftb .ca .gov and search for backup withholding .If a payee has backup withholding, the payee must contact the FTB to provide a valid Taxpayer Identification Number (TIN) before filing a tax return . The following are acceptable TINs: social security number (SSN); individual taxpayer identification number (ITIN); federal employer identification number (FEIN); California corporation number (CA Corp no .); or California Secretary of State (CA SOS) file number . Failure to provide a valid TIN will result in the denial of the backup withholding credit .
A PurposeUse Form 587, Nonresident Withholding Allocation Worksheet, to determine if withholding is required, and the amount of California source income subject to withholding .Withholding is not required if payees are residents or have a permanent place of business in California . Get FTB Pub . 1017, Resident and Nonresident Withholding Guidelines, for more information .Do not use Form 587 if any of the following apply:• You sold California real estate .
Use Form 593-C, Real Estate Withholding Certificate .
• The payee is a resident of California or is a non-grantor trust that has at least one California resident trustee . Use Form 590, Withholding Exemption Certificate .
• The payee is a corporation, partnership, or limited liability company (LLC) that has a permanent place of business in California or is qualified to do business in California . Foreign corporations must be qualified to transact intrastate business . Use Form 590 .
• The payment is to an estate and the decedent was a California resident . Use Form 590 .
Form 587 does not apply to payments for wages to employees . Wage withholding is administered by the California Employment Development Department (EDD) . For more information, go to edd .ca .gov or call 888 .745 .3886 .
B When to CompleteThe withholding agent requests that the nonresident payee completes, signs, and returns Form 587 to the withholding agent when a contract is entered into and before a payment is made to the payee . The withholding agent relies on the certification made by the payee to determine the amount of withholding required, provided the completed and signed Form 587 is accepted in good faith . Form 587 remains valid for the duration of the contract (or term of payments), provided there is no material change in the facts . By signing Form 587, the payee agrees to promptly notify the withholding agent of any changes in the facts .The withholding agent retains Form 587 for a minimum of four years and must provide it to the FTB upon request .
C Income Subject to Withholding
California Revenue and Taxation Code (R&TC) Section 18662 and the related regulations require withholding of income or franchise tax on certain payments made to nonresidents (including individuals, corporations, partnerships, LLCs, estates, and trusts) for income received from California sources .Withholding is required if total payments of California source income to the nonresident payee during the calendar year exceed $1,500 . The withholding rate is 7% unless the FTB grants a waiver . See General Information D, Waivers/Reductions .
Payments subject to withholding include the following:• Payments for services performed in
California by nonresidents .• Payments made in connection with a
California performance .• Rent paid to nonresidents if the rent is
paid in the course of the withholding agent’s business .
• Payments to nonresidents for royalties from business activities sourced to California .
• Payments of prizes for contests entered in California .
• Distributions of California source income to nonresident beneficiaries from an estate or trust .
• Endorsement payments received for services performed in California .
• Other payments of California source income made to nonresidents .
Payments not subject to withholding include payments:• To a resident of California or to a
corporation, LLC, or partnership, with a permanent place of business in California .
• To a corporation qualified to do business in California .
• For sale of goods .• For income from intangible personal
property, such as interest and dividends, unless the property has acquired a business situs in California .
• For services performed outside of California .
• To a payee that is a tax-exempt organization under California or federal law . Use Form 590 .
• To a payee that is a government entity .• To reimburse a payee for expenses
relating to services performed in California if the reimbursement is separately accounted for and not subject to federal Form 1099 reporting . Corporate payees, for purposes of this exception, are treated as individual persons .
D Waivers/ReductionsA nonresident payee may request that withholding be waived . To apply for a withholding waiver, use Form 588, Nonresident Withholding Waiver Request . A nonresident taxpayer has the option to request a reduction in the amount to be withheld . To apply for a withholding
Form 587 Instructions 2015 Page 1
reduction, use Form 589, Nonresident Reduced Withholding Request . The FTB does not grant reductions or waivers for backup withholding .
E Requirement to File a California Tax Return
A payee’s exemption certification on Form 587 does not eliminate the requirement to file a California tax return and pay the tax due . You may be assessed a penalty if: • You do not file a California tax return . • You file your tax return late . • The amount of withholding does not
satisfy your tax liability .For information on California filing requirements, go to ftb .ca .gov .
F How to Claim Non-Wage Withholding Credit
Claim your non-wage withholding credit on one of the following:• Form 540, California Resident Income
Tax Return• Form 540NR Long, California
Nonresident or Part-Year Resident Income Tax Return
• Form 541, California Fiduciary Income Tax Return
• Form 100, California Corporation Franchise or Income Tax Return
• Form 100S, California S Corporation Franchise or Income Tax Return
• Form 100W, California Corporation Franchise or Income Tax Return — Water’s-Edge Filers
• Form 109, California Exempt Organization Business Income Tax Return
• Form 565, Partnership Return of Income
• Form 568, Limited Liability Company Return of Income
Specific InstructionsDefinitions – For withholding terms and definitions, go to ftb .ca .gov and search for withholding terms .Private Mail Box (PMB) – Include the PMB in the address field . Write “PMB” first, then the box number . Example: 111 Main Street PMB 123 .Foreign Address – Follow the country’s practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes . Do not abbreviate the country name .
Page 2 Form 587 Instructions 2015
Part I – Withholding AgentEnter the withholding agent’s business or individual information, not both .
Part II – Nonresident PayeeEnter the payee’s business or individual information, not both . Check the appropriate TIN box and provide the ID number .
Part III – Payment TypeThe nonresident payee must check the box that identifies the type of payment being received .
Part IV – Income AllocationUse Part IV to identify payments that are subject to withholding . Only payments sourced within California are subject to withholding . Services performed in California are sourced in California . In the case of payments for services performed when part of the services are performed outside California, enter the amount paid for performing services within California in column (a) . Enter the amount paid for performing services while outside California in column (b) . Enter the total amount paid for services in column (c) .If the payee’s trade, business, or profession carried on in California is an integral part of a unitary business carried on within and outside California, the amounts included on line 1 through line 5 should be computed by applying the payee’s California apportionment percentage (determined in accordance with the provisions of the Uniform Division of Income for Tax Purposes Act) to the payment amounts . For more information on apportionment, get Schedule R, Apportionment and Allocation of Income .
Withholding AgentKeep Form 587 for your records . Do not send this form to the FTB unless it has been specifically requested .Withholding, excluding backup withholding, is optional at the discretion of the withholding agent on the first $1,500 in payments made during the calendar year . Withholding must begin as soon as the total payments of California source income for the calendar year exceed $1,500 . If backup withholding is required, there is no set minimum threshold and it supersedes all types of withholding .If circumstances change during the year (such as the total amount of payments), which would change the amount on line 6, the payee must submit a new Form 587 to the withholding agent reflecting those
changes . The withholding agent should evaluate the need for a new Form 587 when a change in facts occurs .
Certification of Nonresident PayeeThe payee and/or the authorized representative must complete, sign, date, and return this form to the withholding agent .Authorized representatives include those persons the payee authorized to act on their behalf through a power of attorney, a third party designee, or other individual taxpayers authorized to view their confidential tax data via a waiver or release .
Additional InformationFor additional information or to speak to a representative regarding this form, call the Withholding Services and Compliance telephone service at: Telephone: 888 .792 .4900 916 .845 .4900
Fax: 916 .845 .9512OR write to: WITHHOLDING SERVICES AND COMPLIANCE MS F182 FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651You can download, view, and print California tax forms and publications at ftb .ca .gov . OR to get forms by mail write to: TAX FORMS REQUEST UNIT FRANCHISE TAX BOARD PO BOX 307 RANCHO CORDOVA CA 95741-0307For all other questions unrelated to withholding or to access the TTY/TDD numbers, see the information below .Internet and Telephone AssistanceWebsite: ftb .ca .gov Telephone: 800 .852 .5711 from within the
United States 916 .845 .6500 from outside the
United StatesTTY/TDD: 800 .822 .6268 for persons with
hearing or speech impairmentsAsistencia Por Internet y Teléfono Sitio web: ftb .ca .gov Teléfono: 800 .852 .5711 dentro de los
Estados Unidos 916 .845 .6500 fuera de los
Estados Unidos TTY/TDD: 800 .822 .6268 para personas
con discapacidades auditivas o del habla