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That before hiring a property management company, it’s important to verify that it is licensed with the Department of Licensing?
The AG’s office filed charges against an unlicensed property management company in Auburn and a King County Superior Court Commissioner ordered NW Property Solutions to pay a total of half a million dollars for making unauthorized modifications to homes, making false and misleading representations and refusing to pay homeowners. Property management services were advertised for free, then homeowners were pressured to sign contracts the commissioner described as “unfair” and “unconscionable”. The contracts gave the company’s owner, Jackson, sole control over the properties in exchange for monthly rental payments to the homeowners. Those contracts contained provisions hidden in fine print that gave Jackson’s company the right to withhold rental payments if the owners attempted to contact Jackson via phone about issues at the properties.
Without telling homeowners or obtaining their approval, Jackson built new interior walls to expand the number of bedrooms in the rental properties he controlled. In one case, Jackson built three additional bedrooms into a home zoned for no more than six and then packed the home with 14 tenants. When local government officials imposed fines and penalties, Jackson refused to pay and left homeowners to foot the bill.
The company was found guilty of multiple violations of Washington’s Consumer Protection Act.
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Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.
