Summary

This exhibit documents a text message sent on May 6, 2024 by the property manager requesting that the tenant transfer monthly rent payments directly into the manager’s personal bank account instead of the owner’s. This message constitutes a serious violation of California property and real estate law and demonstrates a potential diversion of funds intended for the landlord. The request occurred after rent had already been paid in accordance with the signed lease terms.

Key Points

• The property manager requests the tenant’s payment be redirected to a private account “to me instead of to the owner.”
• This request attempts to alter contractual payment routing without authorization or written notice from the landlord.
• Represents a breach of fiduciary duty and potential fraud under California law governing licensed real estate agents.
• Demonstrates breakdown of proper management chain and misuse of agency authority.
• Serves as evidence of possible embezzlement or misappropriation of rent funds.

Applicable California Law

• Business & Professions Code §10176(g): It is unlawful for a real estate licensee to commingle or convert funds entrusted to them in a fiduciary capacity.
• Business & Professions Code §10131(b): Any person collecting rent or negotiating leases must act under a licensed broker and deposit funds into a trust account, not a personal account.
• Business & Professions Code §10138: All trust funds must be made payable to the broker under whom the salesperson is licensed, not to the individual.
• Civil Code §1947.3: Specifies lawful methods of rent payment and prohibits landlords or agents from unilaterally changing payment instructions without tenant consent and written notice.
• Penal Code §484: Knowingly diverting or misusing rent funds belonging to another party constitutes theft under California law.

Legal Interpretation

The message shows an unauthorized request for direct transfer of rent into a personal bank account, which violates real estate fiduciary requirements and may constitute financial fraud. A judge reviewing this would immediately identify the violation as a clear attempt to circumvent proper payment channels, exposing both the property manager and the brokerage (if affiliated) to civil and criminal liability.

Cross-References

Timeline Node: May 6, 2024 — Property manager requests direct rent transfer into personal bank account.

Folder Path: /Exhibits/Fraud_and_Fiduciary_Violations/1016.html

Tags: unauthorized rent diversion, fiduciary breach, real estate misconduct, financial fraud, California B&P Code §10176