At great cost to me
in this Eviction battle that I'm in, I'm gonna take the time to teach you about
real estate law as far as your residential leases, contract law and fraud,
we're going to talk about my case, what the building is trying to do and what
my legal side is up to in order to get to the end of this thing.
And hopefully by the end of this, you're going to be much more prepared
to sign your leases and negotiate your leases.
This is huge.
It's got to me thousands of dollars to give you this information.
So before we even get to my title,
real like subscribe, because if you're going to put me through
this to learn, you might as well subscribe to my channel right now.
So my name is Sean Rakidzich.
This is Airbnb Automated and let's teach you some contract law.
All right, welcome back, Airbnb Family today.
I just got out of Eviction court.
It didn't go how I thought it was going to go, and it definitely did not go.
How you guys expected it to go.
I'm certain of it.
So I'm going to hit you with a lot
of stuff right now, and I'm going to try to keep it concise.
Also, the last time I was in this building, I did a video about the three
things that you can do to market your Airbnb off the Airbnb to get more leads.
And the audio quality was trash.
Because really you to get good audio in this building.
So hopefully the audio is better.
If the audio is good enough, you can hear me.
Leave me like my check like me if you can hear me.
But anyway to the topic.
So let me tell you about the negotiation.
First off, where did we begin?
My real estate agent and I approached the building.
We wanted twelve leases at a building,
and we negotiated three year leases with four months of concessions.
Second month free, 12, 24, 36 months free.
We then negotiated kind of our scheduled,
like onboarding for all the leases, and we executed lease number one.
So lease number one, they gave me my lease concession that gave me my lease.
My lease did not have any provisions in it
that prevented me from running my business, which of course, is important.
Expected the lease everything's chipper. We sign up.
We're good to go.
I move my property manager into that apartment as we start to get
boxes from Amazon and everywhere else getting ready to launch.
So we pick up one unit so that we're paying rent for one spot.
But then we can use that space to fill up with everything and start staging.
And then we activate four more leases,
move all the furniture in that day, and then do do do.
So here's where it starts to derail.
We go to pick up our other four units, and there's a delay.
The lawyer did not give management the owner has a lawyer,
and there's a management company that feeds the leases to the leasing staff.
They did not feed the leases to the leasing staff in time.
So there's been a multi day delay.
We placed a furniture order that was about
to be like, we're going to deliver four really nice sleeper sofa,
and we spend all this money on other stuff that we need these keys.
So I'm bugging property management for the keys.
And, like, I need keys.
They're like, Well, you need to sign the leases before we can give you the keys.
I'm like, okay, sounds good. Give me the leases.
They're like, Well, hold on.
We're waiting on them.
So they did not provide me by four next leases until 30 minutes to an hour after
the furniture people were at the building waiting to unload the furniture.
So I meet with the building to get
the keys because the furniture people need to get let in.
We finally get the documents.
Part of them is electronic.
And then because everything was rushed,
the lease concessions and other documents still had to be done on paper.
So I'm signing with a representative
of the building some documents on paper, and I'm signing the core part of the lease
electronically, getting these bills done both on wicked fast.
Get the keys. We start setting up everything.
Everything's good to go.
We then very shortly later,
get a cease and desist order from the lawyer that wrote the contracts.
Right.
Really weird stating that you cannot list your property on Airbnb.
Well, first off, we are not even listed yet.
There's another person in the building that is listing on Airbnb and has been
for a year, and we're still setting up our properties.
So I say, hey, we're not even live, like,
taking guests yet because we're still setting up the properties.
But we also negotiated our terms.
So we're going to be marketing
the property and we have right to, but we're currently not doing anything.
You're telling us not to.
So let's talk to the owner and see if there's a misunderstanding trying to be
mutual here and make sure that if there was a mistake, we can come to terms.
That was the last I heard of that.
Then the owner fires the management
company and the leasing staff that I negotiated with and brings in GraySTAR.
Graystar picks it up and says, hey,
you have an eviction that we're supposed to be pushing you through.
I'm like, I think there's a misunderstanding.
Let me walk you through it. So the regional director of GraySTAR and I
and the property manager of the New Lady, we all sit down and talk about this,
and they come to the understanding that we're not a regular resident.
We are in LLC who signed the leases. Oh, okay.
Well, let's go talk to the owner. Sounds good.
We actually work with another company, Sander all the time, and they had the same
business model so we understand we're good moving on.
I a month and a half later get a judgment
or documentation like a petition or pleadings.
I get a copy of pleadings for an eviction petition while I'm in Costa Rica.
Right.
So now they're having me show up today for court.
So I lawyer up and we go through the whole
process here and here's where we're at here's what we discovered.
And we found this out while I'm sitting across from their lawyer.
We discovered this in the moment of a negotiation because this is wicked.
So we signed our first lease.
I inspected that first lease that delay the lawyer, he wrote in language that was
not agreed upon during our original negotiation.
He not only put media press promotions,
which is my company that's been signing these leases as
the residence or the lease holder, but he wrote me in under it as an added
resident lease holder, and I did not personally apply for residency.
I did not apply to stay there.
So he added me in improperly.
That was not part of our negotiation.
He then also added in the use of premise
clause that we cannot advertise the building.
We cannot advertise on any services, Airbnb, VRBO or more.
Right. All these.
So what he expectedly did was kill our leases, saying, okay,
you can have these extra four leases, but you can't advertise or do anything
with them, and that's kind of where we were.
So what does this mean for you?
First, you need to know what a contract is.
So let me post a screenshot, mutually beneficial agreement.
Each party must agree and accept the contract and its components.
Okay. First off to consideration
that the contract is new to be beneficial, both parties must recognize the benefits
from the contract that they both are receiving benefit from the contract.
Obviously, you must be legally able to sign a contract.
It must be lawful, and it must be written when it's real estate law.
So these are the basic elements of the contract.
You could argue that there's more.
So what's really tricky about this is
you can argue that if somebody gives you
a contract that you do not like and you sign it under pretenses that were
not favorable to you, that you can argue against this.
So we're going to talk about fraudulent inducement.
Next,
fraudulent inducement is where somebody through fraud of contract, like, think,
if they can write into a contract, they induce you to do business against
your will because you were not aware of this inducement.
So there's six aspects to fraudulent inducement in order for it to be argued.
So
actually, let me here. Let me pull it up.
I actually sent this to my lawyer.
So fraudulent inducement.
This is how to super damages.
That's a different one. This is fun.
I'm doing all this research as we're talking.
So let's see if I can put this up to you.
I'm on a screenshot this for you because I think you guys would like it.
So the party in question
must have made a fraudulent misrepresentation of the facts
to the misrepresentation must be material to the transaction.
Three, the perpetrator of the fraud must know that the misrepresentation was false.
The perpetrator who made the misrepresentation.
This is number four
with the intent to persuade the victim into agreeing to the contract.
And then five. The victim relied on this
misrepresentation and six, the victim would not have agreed to engage
in the transaction if he or she knew the truth.
This contract.
If I knew that my name was on the contract, not just my business.
I would not have signed those leases.
I was not personally guaranteeing these four leases.
That's one.
So he got that alone was fraudulent inducement.
He fraudulently induced me into the contract.
And the argument for me signing it,
then this is the thing that you have to argue now is that when I signed it,
I had to be in a situation that was UN optimal or just not optimal for me.
Let's open up this one and see if I can get you a screenshot of this one too.
And I'm seeing you guys everything right now.
This is heavy stuff.
Okay, so terms misrepresentation.
So something that is online with facts to fraudulent is station is false
statement that is known to be false or is made recklessly
without knowing or caring whether it is true or false,
and it is intended to induce a party to detrimentally rely on it.
Negligent misrepresentation is a careless
or invert false statement in circumstances where care should not have been taken.
Material misrepresentation is a false
statement that is likely to induce a reasonable person to assent or
that the maker knows is likely to induce the recipient to a cent.
That's a really fun one.
Direct an unlawful corrosion used
by the stronger party to induce the weaker party to enter into a contract
by threatening the weaker party with financial harm.
So direct can be argued here.
How do we argue the rest?
They delayed providing me to contracts
to the point where I had a business that I struck with supplier.
The supplier was supplying me furniture that day.
I did not get the furniture that day.
I would have lost $1,500 in delivery fees and the furniture would have went away.
We would have had to have it re delivered
at a future date, which means that we would have lost more
business because there would have been a delay in our set up time.
So we could have lost $1,500 plus opportunity costs,
which because of this forced me to act too quickly in order to get these contracts
finalized in order to obtain my keys to complete our business function.
And so signing those leases without
review, which of course you can say, Sean, that's so dumb of you.
Why did you sign for leases like
electronically while signing things on paper and not review those leases.
Well, because when you go back to the contract terms
here, the contract must be mutually beneficial.
And there's no mutual benefit in me signing a lease that says you cannot
Airbnb your space or advertise your space on lodging websites because our business
model is to make a place ready and then the market.
And if I sign a lease that says I cannot market the property,
that is something that I would not sign that has no benefit to me.
I'm just picking up the liabilities of rent.
There is no value because those properties are not for me to stay in.
I do not need them. I do not need five apartments or twelve
apartments for me to live in twelve of them.
There's no way to argue that with that said, we are making the argument
that the first contract was the correct contract.
The confession agreement was the correct concession agreement that we
have written communication valleys of emails back and forth between all
parties, showing that this is what was agreed upon initially and the owner knew
and that we struck a deal for twelve apartments under this agreement
and that every lease following should have fallen under that agreement.
So when the lawyer wrote in new language
into a lease and did not let us know that new language violated our original
agreement, he snuck in fraudulently language that we would not have agreed to.
And thus, when I signed the extra leases
that we signed, there were supposed to be duplicates.
And overall, the leases look very much the same.
Right?
So we signed what was supposed to be duplicate documents just for different
units, because we already agreed on all units in one stroke.
So all twelve leases should have been
the same exact leases just with planned, different start dates.
And they changed the agreement out.
So that's where we're coming from now.
What did we do in court today, aside from knowing this now and starting
to formulate our plan and how we're going to take our line of action?
We could have taken this to court today,
and one we could have just taken it shown the communications between us
and the the management company that was terminated show the original lease.
We could have made our fraudulent inducement claims, and we could have went
through with it immediately and one and not benefit addicted.
But here's the problem is, you need to have a plan in these situations.
It's not just what you want.
It's not just what you can do it's. What is your plan?
What do you want from this?
We have a non cooperative agreement with the building.
Now, that building does not like us anymore.
The owner doesn't like the deal that his
management team agreed to, and so he wants us out.
He's putting pressure on GraySTAR.
Graystar does not want that pressure.
Graystar does not want us there.
If the owner is going to be on their tail.
So they're going to be constantly looking for things to have problems with.
We are no longer able to have a mutually
beneficial relationship with that building.
So we need out.
We can win this court case, but that doesn't give us a safe exit
from the building without weird further litigation and tying us up.
We need to now decide what is it that we want.
And so we have continued it for a month.
And this allows us to speak with GraySTAR,
speak with the previous management company, the owner.
If we can ever get that person
on the phone or to respond to a single email and come up with something that we
think works for us where we don't take unreasonable loss and we can
move on from the building without having to deal with these parties ever get.
And everybody can move unhappy.
And that's the fun part is we could battle this and win it and then end up
in a contentious arrangement with the building for years to come.
But that's not good for business, is it? No, it's not.
So
don't win an argument for the sake of winning an argument.
That's not why you won't be successful.
If that's your whole point is just a win.
Arguments approach all negotiations with a strategic mindset for outcome.
So if you have questions, feel free to leave them in the comments.
Hopefully you like this video because this is some way cool stuff, way cool stuff.
And this will rarely happen.
This is a situation of fraud,
and we're in a sticky spot because somebody tried to pull a fast one on us.
So that's fun if you guys stay tuned, of course I'm going to give you more.
Obviously, September is when my next court case for this is we'll probably have it
negotiated before then, but I'll let you know kind of what we're going to do.
So with that said, I'm going to get back
to doing my homework and thank you for watching Arben be automated.
I will see you on the other side.