Management Agreement for Commercial Property

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Management Agreement for Commercial Property Powered By Docstoc
					This Property Management Agreement is an agreement between the owner of
commercial property and a manager or management company, setting forth the terms
and conditions of a contract for the management of the property. This document
contains the duties of the agent and of the owner, as well as the length of the
agreement and fee to be earned by the agent. The language and terms of this template
document can be modified to fit the needs of the drafting parties. This form should be
used by the owner of commercial property seeking to hire a property manager or by a
property management company.
        COMMERCIAL PROPERTY MANAGEMENT AGREEMENT
This Commercial Property Management Agreement (this “Agreement”) is entered into on this
__________ day of ______, ______ by and between __________ (“Owner”) and __________
(“Agent”).
                                     RECITALS

WHEREAS, Owner holds legal or equitable title to the property located at [PROPERTY
ADDRESS]; and

WHEREAS, Owner desires to retain the services of Agent and Agent desires to perform such
services in the manner and upon the terms and provisions hereinafter set forth.

NOW THEREFORE, in consideration of the mutual covenants made by the parties hereto, and
other good and valuable consideration, the parties agree to the following terms.

                                            TERMS

1.     AGENCY

Owner hereby employs Agent to lease and manage Owner's commercial property (the
“Property”) located [ADDRESS] and more particularly described as: [LEGAL DESCRIPTION].

2.     TERM OF AGREEMENT

This Agreement shall continue for a period of one year from the date hereof, and shall be
automatically renewed from year to year unless terminated by either party upon ____ (___) days
written notice sent to the other party.

3.     DUTIES OF AGENT

In order to properly manage and lease the Property, Agent shall have the following duties and
responsibilities:

       A.     Best Efforts

              Agent shall use its best efforts to search for and retain tenants for the Property.

       B.     Lease Negotiations

              Agent shall handle all lease negotiations with tenants. All such agreements are
              subject to the approval of Owner.

       C.     Employees
                Agent shall employ, supervise, discharge, and pay all employees or independent
                contractors who are reasonably required to properly manage and operate the
                Property. Agent shall pay all employees and independent contractors and fully
                complete all necessary federal and state tax returns and payments of related taxes
                on behalf of Owner.

        D.      Supplies

                Agent shall purchase all necessary supplies for the proper management of the
                Property.

        E.      Repairs and Maintenance

                Agent shall contract for or undertake the making of all necessary repairs and the
                performance of all other necessary work on the Property, including all required
                alterations to carry out this Agreement properly. However, no expenses shall be
                incurred for such matters in excess of ____________ dollars ($__) for any single
                item without the express consent of Owner, except where required in case of
                emergency.

        F.      Mortgages and Other Expenses

                From the rents received, Agent shall pay all operating expenses and such other
                expenses as requested by Owner. This may include the payment of mortgages
                and/or taxes.

        G.      Collection of Rents

                Agent shall collect the rents and other income from the Property promptly when
                such amounts come due and take all necessary steps to collect same. Agent shall
                perform all reasonable acts on behalf of Owner for the protection of Owner in
                collection of such amounts.

        H.      Financial Records

                All monies collected by Agent shall be deposited into a bank account as specified
                by Owner. Such monies of Owner shall not become mingled with funds of Agent.
                Agent shall provide Owner with periodic statements accounting for all expenses
                and shall open its records to Owner upon demand.

4.      COMPENSATION OF AGENT

Owner shall pay Agent, as full compensation for the services of Agent, the sum of __________
dollars ($______) per month. This amount shall be payable to Agent when such funds become
available from the amounts collected by Agent pursuant to this Agreement.




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5.      DUTIES OF OWNER

Owner shall provide all necessary documents and records to and fully cooperate with Agent in
all matters with respect to this Agreement.

6.      INDEMNITY

Owner shall indemnify and hold Agent completely harmless with respect to liability, damages,
costs, and expenses in connection with any damage or injury whatsoever to persons or property
arising out of the use, management, operation, occupation, ownership, maintenance, or control of
the Property. However, Owner shall not indemnify Agent against the willful or intentional
misconduct of Agent.

7.      NOTICES

All written notices to Owner or to Agent may be addressed and mailed, by United States
registered mail, to the following addresses:

To Owner:               ______________________
                        ______________________
                        ______________________

To Agent:               ______________________
                        ______________________
                        ______________________

8.      MODIFICATION

This Agreement may not be modified, altered, or amended in any manner except by an
agreement in writing executed by both parties.

IN WITNESS THEREOF, the parties execute this Agreement as of the date first written above.


OWNER

__________________________
[NAME]


AGENT

____________________________
[NAME]




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DOCUMENT INFO
Description: This Property Management Agreement is an agreement between the owner of commercial property and a manager or management company, setting forth the terms and conditions of a contract for the management of the property. This document contains the duties of the agent and of the owner, as well as the length of the agreement and fee to be earned by the agent. The language and terms of this template document can be modified to fit the needs of the drafting parties. This form should be used by the owner of commercial property seeking to hire a property manager or by a property management company.
This document is also part of a package Real Estate Forms for your Business 46 Documents Included