Document Summary for Customized Management Agreement

Management Agreement Docs Package # 1

The Management Agreement is the cornerstone of the relationship between the property owner and the management company. It establishes the terms of the relationship, the fees, how to end the agreement when something goes wrong, waivers and liabilities. It is what you go to when things don’t work out on the operational side of the relationship. When the owner pushes back, you get to point to this agreement and remind them of what they agreed to in writing. This is the key document in your business model.

This document was originally drafted in 1990 by our attorneys at McCalla, Raymer where we were clients since 1980. Since then it has been tweaked, edited, updated, revised, sharpened and perfected to protect us from every known danger of property management. Revisions have been driven by the ever changing license law, landlord tenant law, federal and state law changes and our experiences. Every time we drop the ball and screw something up (which was a lot over 35 years) we made changes in this agreement. Our attorney, Monica Gilroy, of The Gilroy Firm (formerly of McCalla Raymer) has made changes in this document as recently as the summer of 2018. It is undoubtedly the best CYA management agreement you could ever use and full of revenue-generating strategies. Since this agreement was written by our attorney (a landlord/tenant litigation expert) to protect us, it goes a long way to shutting down opportunities for litigation against any manager.

Note: Long property management agreements should be avoided as they make owners suspicious and prompt them to send them to their attorney for review (not exactly what you’re hoping for). So, for many years we kept the PMA short (like 5 pages) and added Housekeeping (support) documents, separate from the agreement, to give special emphasis to things we wanted to draw their attention to. They execute all the housekeeping documents which gives them ‘the same strength as the PMA’ and helps us avoid Document Creep (ending up in a 15 page management agreement). You can download this management agreement with (or without) the Housekeeping (supporting) documents. It works great as a stand-alone agreement or in conjunction with all the other documents listed below.

What you get:

You will receive: a fully editable management agreement (PMA) that you will add your name to, make some dollar (and percentage) changes, and be up and running in minutes; plus, a document to help you fill in the right information so your final agreement is exactly what you want. The “Instructions to Adapt the Management Agreement to Your Company” identifies 20 blanks to fill in so you don’t miss anything in the Agreement to adapt it to your model; plus a document completely filled-in plus instructor training notes after every paragraph addressing each issue in detail; plus a training document of Duties, Promises, Warranties the owner makes to the manager, and manager to the owner.

Package #1 Pricing Management Agreement Only for $497.00.  (Subscribers get 20% off this price) Think of this as what you might earn leasing one property, or about the cost of 2 hours with a medium priced attorney.

You can download the PMA documents 1-4 only (package #1) or bundle them up with other packages on this page.

In addition, for no additional cost, we will review your finished documents once you complete them if you want us to. Also, for an additional $200, attorney Monica Gilroy of The Gilroy Firm (the attorney who wrote our documents) will review your documents.

Remember: this is much more than just the documents. This is 35 years of information and experience wrapped up in documents (plus training notes/videos) including several new revenue streams, CYA protections and things you didn’t even know you needed and won’t even think about until it’s too late.

We have spent tens of thousands of dollars with our lawyer over the last two decades perfecting and revising these documents. They have prevented countless lawsuits and disputes with owners and have made us a lot of money (literally millions). You will too if you acquire these documents and put them to work in your business. Or, learn from your own experiences, over the next 20 years, make your own mistakes and create your own documents. The choice is yours.package2

Housekeeping (Supporting) Documents Package #2

to be added to every property management agreement

Over the years we have figured out that there are some things you need to address in a separate document because it needs special attention. Mold, mortgage foreclosures and personal property issues are examples. Sometimes, when a big topic is addressed in the management agreement, it stretches the document into eight or ten pages which is to long. Some management agreements go on for 15 pages and they are overwhelming. Long agreements generate too much information (and suspicion) for the owner. Better to carve out some topics from the property management agreement and put them on separate pages. You use all these housekeeping documents with all property management agreements.

1. Mold / Mildew / Moisture Disclosure

Any moisture issues the owner has had in (and around) the property, in the past five years, needs to be disclosed to the tenant before they take possession. You need to notify the tenant if the owner has had a flood, leak, mold, water damage etc. Failure to disclose this can have serious consequences and we’ve fought several battles with tenants over this disclosure. Make sure the owner signs this and have the tenant sign a copy before they move in.

Tenants get irate when they discover ‘the owner had moisture/mold issues and wet basement with previous tenants’ (or while they lived there) and feel deceived when it’s not disclosed before they took possession. When tenants feel tricked or deceived they talk to lawyers. The manager usually ends up being blamed by the tenant and ends up sharing in their moving costs.

Owners don’t think to tell you ‘unless you ask’ so be sure to make an issue out of this. We’ve been burned more than once over this failure to ask, and get hold harmless agreements from the owner. You can use the same owner signed original over and over again so ‘don’t use the original.’ Make copies for future tenants to execute.

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2. Establishing & Maintaining the Trust Account

Tell your owner/client clearly about your trust account requirements and how your state law regulates the management of those funds. NEVER cover their expenses and send them an invoice or you’ll be bankrolling them forever. Make it clear they need to pre-fund maintenance, maintain a minimum account balance (owner reserve) and keep all trust accounts positive. Let them know you will be depositing all funds you receive into a trust account and report to them monthly. This disclosure takes care of all those issues and gives you a document to point back to when they resist depositing money with you before you pull the trigger on normal maintenance and turnkey projects. This is often hard to manage because owners want to stay in control. They want to pay off an invoice, after the job is done, and they verify it. After the job is done is never the time to argue about money.

Set this up right and you’ll have no trouble with the administration of your owner’s trust account. Make it clear that you intend to follow the licensing and trust account laws of your state and they need to embrace and cooperate with that effort or find another manager. You are no different than a bank, brokerage house or sales company. You must follow the rules of your licensing bureau and ‘having the money in the owners trust account BEFORE you order the work’ is part of that compliance issue.

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3. Personal Property Disclosure

Owners love to leave personal property behind thinking it will still be there when they return. It seldom is and guess who they want to hold responsible for protecting and managing it? YOU of course. No matter what you say to them, they think you should be the guardian of their stuff, and see to it that it gets returned in good shape. Protect yourself. Take yourself off the hook in advance and make it clear ‘you’re not the manager of their personal property.’ For years we tried to accomplish this with a stip in the management agreement but it didn’t work. You need to draw their special attention to this Issue and this document accomplishes that.

This document tells them to take their personal property out or don’t expect to see it ever again. They will leave stuff locked in a closet in the basement and expect you to manage it as well. They will expect you to manage the water leaks and mold on their stuff in their Owner’s Closet and blame you when the rodents find their way in. Make it clear you’ll list items they leave behind but they can’t hold you accountable when it turns up missing or broken.
Note: when the sheriff and his boys start tossing out the tenant’s stuff they seldom ask “is this yours, or the owners.” You need this document to protect yourself.

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4. Owner’s Mortgage Disclosure

One of the huge risks managers bare today is renting a property, move the family in, then watching as it goes into foreclosure and the tenant gets evicted by the lender. We’ve had it happen more than we’d like to admit. If you don’t protect yourself you will get sued by the tenant for violation of your promise of quiet enjoyment, unlawful dispossessory or constructive eviction. When the owner signs this document they are promising the mortgage is current; if it goes into foreclosure they will notify you immediately (not that it will help any), and (here is the big one) they will pay your attorney fees if you get sued by the tenant over the foreclosure issues. Don’t make the mistake of thinking, “if the owner loses the home in a foreclosure they won’t have any money to defend you, so why go through the effort.” Wrong!!!

Many landlords have great credit, own their own home, have good paying jobs and will still let their rentals go into foreclosure. Don’t think they are broke just because they let the rental go back to the bank. Having them defend you is good protection and they will sign this without question if they think they will not be foreclosed on. If they hesitate signing this you should be suspicious and do more research. Get this signed up front and protect yourself from the carnage of a foreclosure.

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5. W-9 Form

The IRS requires that you report to them (with a copy to your owner) at the end of every year, regarding how much rent you collected from the tenant on their behalf. Your report is due to the IRS before January 31st and the penalties against YOU for failure to report are substantial. This is the document the owner signs acknowledging this report and your requirement to send it to the IRS. Make sure they sign it or you will have a very unhappy owner when you do your reporting.

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6. Lead Paint and Flood Disclosure

Houses built before 1978 often had lead in the paint which has been discovered to be toxic and a serious health hazard for kids under 8 and pregnant women. Federal law requires that you have the owner and tenant sign this to disclose the potential presence of (or lack of) this poison in the home. The owner signs this document to reveal to you (and the tenant) any knowledge they have regarding any lead paint in their home. Copy the original the owner signs and have every tenant sign (a copy) before you move them in. Use the same original over and over. Just have the tenant sign a copy and keep it with other important tenant documents.

Every one of these documents is the result of getting burned, blamed, fined or fired for something we either didn’t do right or didn’t disclose adequately. You can have your attorney draft each of these documents and tweak them over the next 10 years as you go through your learning curves, or, download them and be up and running instantly. It’s not a matter of IF you’ll need them, but WHEN. Protecting Yourself is a full time effort in property management.

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7. Authorization to Add Agent (property manager) as an Additional Insured.

Houses built before 1978 often had lead in the paint which has been discovered to be toxic and a serious health hazard for kids under 8 and pregnant women. Federal law requires that you have the owner and tenant sign this to disclose the potential presence of (or lack of) this poison in the home. The owner signs this document to reveal to you (and the tenant) any knowledge they have regarding any lead paint in their home. Copy the original the owner signs and have every tenant sign (a copy) before you move them in. Use the same original over and over. Just have the tenant sign a copy and keep it with other important tenant documents.

Every one of these documents is the result of getting burned, blamed, fined or fired for something we either didn’t do right or didn’t disclose adequately. You can have your attorney draft each of these documents and tweak them over the next 10 years as you go through your learning curves, or, download them and be up and running instantly. It’s not a matter of IF you’ll need them, but WHEN. Protecting Yourself is a full time effort in property management.

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8. Personal Property Feature Disclaimer

You’ll need a form for the owner to describe all the features of their property including number of bedrooms, baths, schools, community amenities, which appliances are included, utilities included and other features. Don’t let them ‘push this off on you.’ If there is an error they will blame YOU and THEY should have the information in THEIR files. Often you’ll advertise a property with a washer/dryer and the owner will take it, leaving you to buy one for the tenant (or other crazy things like this). We’ve made the mistake many times of identifying the wrong schools, listing the microwave when the owner takes them, forgetting that the security system was the tenant's expense and so on. There are lots of ways to screw this up so make the owner complete it. There is more than one way to do this. This format is sufficient for most rental houses but will need to be tweaked by you to fit your model.

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9. Authorization and Agreement for Automatic Electronic Funds Transfer (EFT/ACH)

This document gives you the authority to automatically credit and debit funds from the owner’s account as necessary and remains in effect until you receive written notice to discontinue.

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10. Owner Declaration and Data Schedule

This document helps clarify ownership, who’s speaking for the owner(s) (or entity). This is a data-collection form.

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11. Unenforceable Terms in the Lease Disclosure

Sometimes managers allow stipulations in a lease that they really don't have a system in place to monitor or enforce. Occasionally they take over someone else's lease and find language that is not trackable, measurable or enforceable. Examples might include: no pets 10 pounds no indoor pets, no smoking, temperature set at 70° during cold weather, guests can only stay three days and tenant agrees to water the shrubbery. These types of stipulations are impossible to monitor, measure and enforce and disclosure of this to the owner lowers the risk of the manager being sued for professional liability or malpractice when they leave these items in the lease.

Here’s the problem

Owners naturally believe if it’s In the lease, it’s enforceable and will hold it against their manager when it's not. Owners think you’re the expert and they are paying you to get it right and draft leases that are enforceable. It is incumbent on you to get it right and be legal and be enforceable or YOU are going to be blamed when all hits the fan.

To protect yourself you must remove (or at least lower) this liability from your company by either removing this kind of language from the lease or disclosing the reality of the lack of tracking and enforcing it to your owner. You may want to consider making this a housekeeping document to be signed by the owner when you take on the property. You could use this language in an owner newsletter or annual report and disclosure. One way or another you should send it out (maybe twice a year) to remind owners that these kinds of stipulations, although added in most leases, cannot be tracked, monitored, or enforced. This is one more CYA document to protect your company from the many liabilities of this business; especially liability from an angry owner.

This product includes the disclosure language to the owner and training document for the manager and their staff regarding how and when to implement this document.

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12. New Property/Owner Sign Up Checklist

Every office needs to develop an internal tracking form to assure all the owner sign up documents are in the file and all the issues have been addressed.

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Housekeeping Documents Package # 2 (items 1-12)

Package # 2 Includes Items 1-12

What you get: Mold / Mildew / Moisture Disclosure; Establishing & Maintaining the Trust Account; Personal Property Disclaimer; Owner’s Mortgage Disclosure; W-9 Form; Lead Paint and Flood Disclosure; Authorization to Add Agent (property manager) as an Additional Insured; Property Features; Authorization and Agreement for Automatic Electronic Funds Transfer (EFT/ACH); Owner Declaration and Data Schedule; New Property/Owner Sign Up Checklist; Things You Can’t Track, Monitor or Enforce

Pricing: 12 Housekeeping (Supporting) Documents for $110.00.  (Subscribers get 20% off this price) Think of this as what you might earn leasing one property, or about the cost of 2 hours with a medium priced attorney.

You can download the Housekeeping (Supporting) Documents 1-12 only (package #2) or bundle them up with other packages on this page. package3

$110.00Add to cart

(Subscribers get an additional 20% off)

Ancillary Documents Package # 3

Use these documents when appropriate

Over time you’ll run into special situations that need a specialized document. The following are individual documents, checklists and policy statements that will help you manage the owner sign up process. Each file contains a document ready for your immediate use, plus a completed document to help with your learning curve, plus, the same documents with instructor notes for even more training (where and when appropriate).

1. Owner’s Homeowner Association Disclosure

Owners will forget to tell you about HOA requirements and restrictions regarding leasing in their managed communities. This document has been created in 1996 due to the ever increasing dangers we faced leasing in aggressive HOA-managed communities. Owners forget to tell managers about special signage requirements, special forms the tenant needs to sign, special permits needed to lease in the community and these issues can get managers in all sorts of fistfights. HOA’s are booting tires when dues are not paid, dismantling entry keys to pools and evicting tenants over continuous rule violations and managers need to protect themselves from these HOA (or owner caused) hazards.

Managers are getting sued by tenants over loss of right to quiet enjoyment, wrongful dispossessory, harassment and constructive eviction when the HOA’s begins to bare down on them. Managers need a document to protect themselves when owners forget to disclose the presence of an aggressive HOA and the requirements of tenant rules in the community. (You also need to have the tenant sign a document preventing them from suing you if the HOA does them wrong. See our Tenant CYA section for a list of documents to protect yourself in these situations).

This is one of the most toxic and litigious battle ground of management exposure in today’s rental market and owners need to notify (and indemnify) managers for the fallout from these issues. HOA’s have hugh power over the owner, and ultimately you, regarding what happens in their communities and they love to wield it without mercy. Don’t get caught up in the fines, assessments and debates without having this protection from the owner.

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2. Power of Attorney

Often you’ll find yourself in a situation where ‘one of the owners wants you to deal with the other one’ and not be involved in any decisions. Or, you’ll be receiving orders from several owners and you’ll want to ‘reduce the confusion and designate one to do all the talking.’ Managing for two or three owners is often chaotic like kids listening to two parents who don’t agree. A power of attorney is the solution and they are easy to fill out.

This is one our attorney crafted years ago just for owners to identify ‘who is doing the talking’ or ‘I’m traveling a lot, take orders from my brother.’ You don’t want to follow those instructions without a document protecting yourself if the designate does something stupid and makes a bad decision for the owner. When in doubt you’ll be blamed for listening to the wrong person and take the hit for the consequences. Get it in writing. Use a POA. They are simple to complete and will cover you when things go wrong.

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3. Modification of Agreement Addendum

Add this page when you want to make fee changes in your PMA for an investor. Don’t make changes in the property management agreement. This document will get the job done without diluting all the protection laid out in your property management agreement.

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4. Adding a Property to an Existing Management Agreement

Often you will have a client with an ever growing list of properties to manage like builders, banks, large investors and REIT’s. We use to execute a new management agreement with each new property. That process was laborious, generated way too much paper and was certainly time consuming. Our attorney drafted a simple document that allows us to ‘add a new property to an existing management agreement’ and avoid all the duplication. This simplifies the process and saves you from over-documenting each transaction. Owners love it as it saves them from having to go through a completely new set of documents each time they give you a new property. You still need separate housekeeping documents, like lead paint and a features page, but you save time by just adding new properties to an existing document. I recommend just copying the original management agreement to the new file and attaching this addendum. You may want to add a special stipulation to the original management agreement that anticipates future additions like “this agreement will be sufficient for future properties to be added by the owner by the execution of a separate addendum.”

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5. Multiple Owner Declaration and Data Schedule (Exhibit)

Use this as an Exhibit requiring all owners to sign when there are more than 2 owners. Use the management agreement signature page and the Owner Declaration and Data Schedule housekeeping document when there are two owners or less.

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6. Entity Declaration and Data Schedule

This is a similar version of the document above but addresses entity owners only. Use this in addition to the appropriate entity document. You need to pin them down hard when they own the property in an entity.

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7. Home Warranty Disclosure and Agreement

This document takes the manager off-the-hook when the warranty company fails to perform on a timely basis and permissions the manager to step in, solve the problem and bill the owner.

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Ancillary Documents Package # 3 (items 1-8)

Package # 3 Includes Items 1-8

What you get:Owner’s Homeowner Association Disclosure; Power of Attorney; Investor Management Agreement Addendum; Adding a Property to an Existing Management Agreement; New Property/Owner Sign Up Checklist; Multiple Owner Declaration and Data Schedule; Entity Declaration and Data Schedule; Home Warranty Disclosure and Agreement

Pricing: 8 Ancillary Documents for $140.00.  (Subscribers get 20% off this price) Think of this as what you might earn leasing one property, or about the cost of 2 hours with a medium priced attorney.

You can download the Ancillary Documents 1-8 only (package #3) or bundle them up with other packages on this page.

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$110.00Add to cart

(Subscribers get an additional 20% off)For more savings view Super Package # 6 at the bottom of the page.

Entity Documents Package # 4

Use only when the property is held by a trust, corporation or Limited Liability Company.

Often properties are hidden in an entity like a Corporation, Limited Liability Company or Trust. If you’re not careful the owner will trick you by having the wrong party execute your PMA. When a property is held in an entity you need a special document to protect yourself from wily owners who don’t really have the proper authority to act on behalf of the entity. Our attorney crafted these many years ago and we insist on having the owner complete one, get it witnesses and notarized, before we take on the management of their property. Each file contains a document ready for your immediate use, plus a completed document to help with your learning curve, plus, the same documents with instructor notes for even more training (where and when appropriate).

1. Certification of Trust

For asset protection purposes many owners will title their property into a trust. When you see this in the tax records, or on the title page of their deed, you need to remember ‘an individual’s signature on your management agreement is not adequate documentation.’ You can be accused of malpractice or incompetence if you don’t get the listing/management agreement right. Claims from someone that “I’m the real owner behind the scenes, take your instructions from me” isn’t good enough when the title is in an entity or trust. It’s your job to ‘get it right’ and there is no closing attorney to look over your shoulder protecting you from documentation errors or fraud.

You need a Certification of Trust, with a signature, witness and notary for your file to protect yourself when things go south and you have an issue with an owner or tenant. Make sure you’re dealing with the right person, with the right authority, and sending the money to the right account before you take on the property titled in a trust. There’s a lot of money at stake and people get real mad when it goes to the wrong account. Make them fill out this certification and swear, in front of a notary, they are the person you can trust for ownership decisions for the trust.

This product includes the document and an example for training.

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2. Corporate Resolution

Every builder, bank, developer, REIT (and many private owners) hold title to their property in a Corporation. It’s your job to get the paperwork right or you’ll pay a price if you skip over this because you don’t know what to do. Require the one claiming to be in charge to complete and execute a corporate resolution. People working out of a corporation know this is expected so don’t disappoint them. They had to execute one of these to open a bank account, get an EIN number and take title of the property. These documents will protect you when things go wrong and they are simple to fill out. Get the person ‘claiming ownership’ (or signing authority) to complete it, execute it, get a witness and notary for your protection and stick it in your file for safe-keeping. You’ll sleep better knowing you have crossed all the t’s and dotted all the i’s.

This product includes the document and a sample for training.

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3. Limited Liability Company Affidavit

Often a property is held in a Limited Liability Company (LLC) for asset protection or to hide the identity of the real owner. Many investors use this strategy to mask who the owner is. Hiding title is a popular form of creating anonymity and this often confuses the property manager. Don’t become one of the tricked ones in the long list of owners wishing to remain anonymous. It’s your job as the licensed professional to get the paperwork right or you’ll pay a stiff price for failing to. You have no closing attorney to figure this out for you so you must do it yourself. Require the one claiming to be in charge to complete and execute this LLC affidavit and keep it in your records. These documents will protect you when things go wrong and they are simple to fill out. Get the person claiming ownership (or signing authority) to complete it, execute it in front of a witness and notary for your protection. You’ll sleep better knowing you have crossed all the t’s and dotted all the i’s.

This Product Includes THREE Documents

1. LLC Affidavit and Certification of Authority
2. Limited Parnership Affidavit and Certification of Authority
3. Instructions on Completing and LLC Authority and Example

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Entity Documents Package # 4 (items 1-3)

Package # 4 Includes Items 1-3

What you get:Certification of Trust; Corporate Resolution; Limited Liability Company Affidavit

Pricing: 4 Entity Documents for $70.00.  (Subscribers get 20% off this price) Think of this as what you might earn leasing one property, or about the cost of 2 hours with a medium priced attorney.

You can download the Entity Documents 1-3 only (package #4) or bundle them up with other packages on this page.

$70.00Add to cart

(Subscribers get an additional 20% off)For more savings view Super Package # 6 at the bottom of the page.

Video Training Package Package # 5

Video Training (Package #5)

To accelerate your understanding and implementation of these documents we’ve prepared 58 training videos covering all the details of these documents. These videos are shot in studio and go through each stipulation in painstaking detail to uncover protections for the manager, revenue-generating strategies and can be used to help you train your staff and leadership on the use of the documents.


$195.00Add to cart

(Subscribers get an additional 20% off)For more savings view Super Package # 6 at the bottom of the page.

SUPER Package # 6

Buy Packages 1, 2, 3, 4, 5 all together as the SUPER Package for Customized PMA

Total of all packages bought separately totals $1,177.00 You can get all packages together for only $995 (Package #6). (Subscribers get another 20% off this price or $716.00)

$995.00Add to cart

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