licensed real estate broker/property manager property ... · owner’s initials _____ 1 rev....

Owner’s Initials ______

1

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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Rev. 03/25/2016

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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Rev. 03/25/2016

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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Rev. 03/25/2016

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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Rev. 03/25/2016

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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Rev. 03/25/2016

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: ______________

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Persons-Receiving-Rental-Income-From-U.S.-Real-Property

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Persons-Receiving-Rental-Income-From-U.S.-Real-Property

Owner’s Initials_________

Rev 03/24/16


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


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: _____________________________________________________________________

_____________________________________________________________________________________________________


Rev 03/24/16

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____________


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.

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



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.



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

licensed real estate broker/property manager property ... · owner’s initials _____ 1 rev....

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