PROPERTY MANAGEMENT AGREEMENT
PARTIES: The parties to this agreement are (Owner) and (Broker) Alltex Residential P.L.L.C. dba CENTEX REALTY. Owner appoints Broker as Owner's sole and exclusive leasing and managing agent of the real property: PROPERTY: , TX (address, city, state, zip) Owner authorizes Broker to lease the Property at market rates and on competitively reasonable terms. MANAGEMENT FEE: Each first day of the month Owner will pay Broker . Payable in Travis County TX. TERM: Primary Term: The primary term of this agreement starts on and ends on . Unless owner provides written notice of termination to broker at least thirty (30) days before the end date, this agreement will automatically renew and continue until such time as either party terminates this agreement by giving at least thirty (30) days advance written notice to the other party. If Broker cannot continue to effectively provide leasing and management services to Owner, for any reason; broker may terminate this agreement at any time with 3 days notice. SECURITY DEPOSITS AND CONTRACTS UPON TERMINATION: Before Broker is to deliver to Owner any tenant's security deposit held by Broker after this agreement terminates, Owner must deliver to tenant a signed statement acknowledging that Owner is responsible for the tenant's security deposit and the exact dollar amount of the security deposit. Owner agrees to be responsible for all then-existing contracts related to the property executed prior to the termination of this agreement and to hold Broker harmless from all claims related to such contracts. This paragraph survives termination of this agreement. DUTIES AND AUTHORITY OF BROKER: Broker may: advertise the Property for lease at owner's expense; display signs on the property; authorize other agents to show the property; screen rental applications; execute & renew lease agreements; deny applicants & renewals of leases if needed; file insurance claims for owner; collect from tenants or prospective tenants application, bad check & late fees (and retain for the cost of collecting such fees); terminate tenancies & serve notices of termination; evict tenants & recover possession of the property; execute landlord liens; use brokers sole judgment to settle or compromise & release any action to recover possession, lost rent, or other damages, or to reinstate any tenancy or make concessions to avoid disputes; act for Owner before Owners' Association if needed; collect rents to be held in a trust account for all management properties ( separate from brokers company operating account ); collect security deposits held in a trust account; at owners expense, hire, contractors to make repairs, do maintenance or re-decorations, or alterations to the Property (including any non-real estate items). Broker will contact owner by telephone or email when any single repair exceeding $300.00 is needed; unless it is deemed an emergency or health/safety concern by broker. If Broker is unable to contact owner, broker may do any and all repairs at their discretion. Owner will be charged the exact amount of any repair expense with no added fees for such expenses. The Repair receipts will be posted online for owners records. If an outstanding balance of owners’ account exceeds $500 for a period of 10 days of more; a 10% surcharge for any expense incurred on owners behalf, may be added at brokers’ option and interest charged at a rate of 18% per year plus any court costs incurred to collect. Excessive repairs will be considered “remodeling” and at brokers discretion may be subject to a 15% surcharge; and/or owner may need to hire a contractor to supervise repairs. VACANCY PERIODS: Broker may at owners expense: advertise, contract for: utilities, cleaning, pool work, lawn care, paint, offer leasing fees at an agreed amount, or do other items broker deems needed; perform other services related to leasing & management of the property. Vacancy / “turnover” is the most expensive time period of ownership. Owners should plan ahead for these expenses and utilize marketing strategies discussed with the management company. LEASING & RENEWAL FEES: Whenever a new tenant is procured, owner agrees to pay a one time Leasing Fee (which will be deducted from the first months rent) of 75% of one months rent. This leasing fee will be shared 25% to Centex Realty and 50% to the cooperating broker/agent who brings an acceptable application, or to the owner if they desire to secure an acceptable resident. Centex Realty is not liable for refunding any leasing fees for any reason. Renewal of leases with existing tenants will be at a rate of $150. Owners should discuss the Leasing Fee with the broker if needed to explain all the options available. ONLINE COMPUTERIZED STATEMENTS SHOWING MONTHLY RENT COLLECTED and EXPENSES will be available online th at no additional cost to owner. Broker will send monthly rent collected on or about the 9 day of every month to owner by electronic funds transfer, which owner will set up online when invited by Centex Realty. All expenses incurred in regards to this property (or any other property managed by broker, if a balance is due) & management fee will be deducted from the rent each month and the balance of rent sent to owner. Non-use of online statements and or banking will be by arrangement with broker. Year End statements will be assessable to owners online. LISTING SERVICES: When the Property is marketed for lease, Broker may file the Property as a listing with any Multiple Listing Service (MLS) and on a computerized system of public access. After the Property is leased, information about the lease will also be submitted to MLS. LOCKBOX: Not mandatory. A LOCKBOX is placed on the Property in which a key to the Property is placed. They make it more convenient for agents to show the Property. Agents will “call first” when planning to show. Only agents can open lockboxes. The lockbox records who has opened it. They involve some risk (such as unauthorized entry, theft, property damage, or personal injury). Neither the Association of REALTORS@ nor any MLS system requires the use of a lockbox. Please discuss the advantages and disadvantages of lockboxes with your Broker, insurance agent, and/or attorney. Broker [X] is [ ] is not authorized to place a lockbox containing a key to the Property on the Property. Indemnity: If a lockbox is authorized, Owner will protect, defend, indemnify, and hold harmless Broker, Broker's associates, and other brokers or their associates, the Association of REALTORS, any MLS, from any damages or claims arising from the use of the lockbox including, but not limited to, damages to or loss of real or personal grope or Personal injury not caused by Broker's negligence. Owner assumes all risk of any loss, damage, and injury. LEGAL COMPLIANCE: The parties will comply with all legal obligations, duties, and responsibilities under the Texas Property Code, fair housing laws, or any other statute, administrative rule, local ordinance, or restrictive covenant related to the leasing,
use, management, or care of the Property. Broker is not responsible for the compliance of any building or equipment on the Property with any statute, ordinance, law, regulation of any governmental body or of any public authority or official, or deed restriction. OWNER'S RESERVES: Broker may hold $300.00 in trust in the owners management account as reserves for expenses relating to owners property, to be used at Broker's discretion for expenses. This $300 will be collected from the first months rent. PROPERTY CONDITION: Owner should make broker aware of any material defect, environmental hazard, and any violation of any statute, ordinance, law, regulation of any governmental body or deed restriction on the Property that would affect the health or safety of any tenant. Owner will remedy any conditions that affect the safety or health of a person on the property. If the Property was built before 1978, Owner will complete an addendum regarding lead-based paint. Owner authorizes Broker to disseminate to prospective tenants or other brokers copies of the addendum completed by Owner Owner will protect, defend, indemnify, and hold harmless Broker, Broker's associates, and any other broker or their associates from any damages, costs, attorney's fees, and expenses arising from: (i) Owner's failure to disclose, repair, or remedy any material defect or any condition affecting the health or safety of a tenant: or (ii) Owner providing any incorrect information to Broker. Broker's associates, other brokers or their associates, or any prospective tenants. OWNER'S REPRESENTATIONS AND ADDITIONAL PROMISES: Owner represents that:(1) Owner has fee simple title and peaceable possession of the Property and all its improvements and fixtures, unless rented, and has the legal capacity to rent the Property;(2) Owner is not now a party to a listing agreement or a property management agreement with another broker for the sale, lease, rental, or management of the Property;(3) no person or entity has any right to purchase, lease, or acquire the Property by virtue of an option, right of first refusal, or other agreement;(4) no delinquencies or defaults exist under any deed of trust, mortgage, or other encumbrance affecting the Property;(5) the Property is not under the direction of any court; and (6) All written information relating to the Property provided to Broker by Owner is true and correct. If Owner becomes delinquent under any lien, mortgage, deed of trust, or other encumbrance affecting the Property, Broker may inform any tenant occupying the Property of such delinquency. C. Owner must at all times this agreement is in effect: (1) cooperate fully in good faith with Broker to facilitate the showing and marketing of the Property;(2) not rent or lease the Property to anyone without Broker's prior approval;(3) not enter into another listing or property management agreement with another broker for the rental, leasing, or management of the Property. (4) Provide Broker with copies of all leases if any, pertaining to the Property. Owner should check with their insurance agent as to the type of coverage needed on a “rental” property & a vacant property. Interest on Trust Accounts: Broker may place any funds Broker holds in trust for Owner in an interest-bearing account and may retain any interest or income from such account. Compensation from interest is earned and payable at the time such interest accrues. Fees for Sale of Property: "Sell" means to sell, convey, transfer, or exchange or to agree to sell, convey, transfer, or exchange. (1) If Owner sells the Property at any time this agreement is in effect, this agreement will terminate on the date the sale closes, unless it terminates earlier by other provisions and owner will pay broker a cancellation fee equal to three months management fees. Broker may waive the fee if Owner utilizes Broker to sell the Property pursuant to this agreement. If at any time this agreement is in effect or within 90 days after its termination, Owner sells the Property to a tenant who occupied the Property, Owner will pay Broker a fee of 3% of the sales price at the time the sale closes. If, however, a separate written listing agreement between Owner and Broker applies to the sale, this paragraph will not apply. Fees under this paragraph are earned at the time Owner agrees to sell the Property and are payable at closing. If at any time this agreement is in effect Owner sells or agrees to sell the Property to a person other than a tenant occupying the same Property and does not utilize Broker to sell the Property pursuant to a separate written listing agreement, Owner will pay Broker $200 for Broker's time and services to coordinate any showings, inspections, appraisals, repairs, and other matters related to the sale of the Property. Fees under this paragraph are earned at the time such services are rendered and payable upon Owner's receipt of Broker's invoice or statement. REIMBURSEMENT OF BROKER'S EXPENSES: Owner will reimburse Broker the following expenses that are related to the leasing or management of the Property: If copies have been provided to owner of any paperwork that broker has; and additional copies must be made for owner or someone owner designates such as a lender; (1) copy charges; (2) charges for long distance telephone calls or facsimile transmissions; (3) regular, express, or certified mail charges; (4) notary fees; and (5) any other expenditure authorized by this agreement or Owner. These will be charged at the rate of $25 per occurrence at brokers’ option. FUNDS RECEIVED BY BROKER AFTER TERMINATION: If Broker receives any funds on behalf of Owner after this agreement terminates (for example, payment of rent, damages, bad debts, etc.) Broker may deduct reimbursements Broker is entitled to retain as if this agreement was then in effect. This provision survives termination o f this agreement. LIMITATION OF LIABILITY: Broker is not responsible in any manner for: (1) Personal injury to Owner or any tenant resulting from acts of third parties (2) Loss or damage of personal or real property due to vandalism, theft, or freezing water pipes (3) Late fees or derogatory credit rating, owner incurs to any creditor caused by any late payments or late rent by any tenant (4) Any lease violations or default by any tenant; or (5) Any other damage or loss. If any loss, damage, or injury to the Property or any person is caused by Broker or Broker's negligence and such loss or damage is covered and compensable under any insurance policy related to the Property. Owner agrees, to the extent permitted by law, to hold Broker liable only for Owner's deductible in such a policy and any other out-of-pocket expenses. DEFAULT: If either party breaches or fails to comply with this agreement or makes a false representation in this agreement, the party will be in default. If either party is in default, the non-defaulting party may seek any relief provided by law. MEDIATION: The parties agree to negotiate in good faith in an effort to resolve any dispute related to this agreement that may
arise between the parties. If the dispute cannot be resolved by negotiation, the dispute must be submitted to mediation before resorting to arbitration or litigation. If the need for mediation arises, the parties to the dispute will choose a mutually acceptable mediator and will share the cost of mediation equally. ATTORNEY'S FEES: If Owner or Broker is a prevailing party in any legal proceeding brought as a result of a dispute under this agreement or any transaction related to or contemplated by this agreement, such party will be entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney's fees. SPECIAL PROVISIONS: and Optional
Additional Monthly Fees:
Property to be rented on a 12 month______ ; 24 month_______ ; 36 month _______ lease term. Property to be offered as “Lease Purchase” with a $300 per month rent credit. Bill 1/3 1/3 1/3 (finance charge will apply) Section 8 OK (additional $8.00/mo management fee) Location Adjustment $ _____________ mo additional management fee Condition Adjustment $ _____________ mo additional management fee Repair Service (addendum) Other:
Additional properties: _______________________________________________________________________________________ AGREEMENT OF PARTIES: Entire Agreement: This agreement contains the entire agreement between the parties and may not be changed except by written agreement. Joint and Several: All Owners signing this agreement are jointly and severally liable for all provisions of this agreement. Any act, notice to, payment to, signature of, or instruction from, any one or more of the Owners regarding this agreement, its renewal, extension, or termination, is binding on all Owners executing this agreement. Binding Effect: This agreement is binding upon the parties, their heirs, administrators, executors, successors, and permitted assigns. Controlling Law: The laws of the State of Texas govern the interpretation, validity, performance, and enforcement of this agreement. Severable Clauses: Should any clause in this agreement be found invalid or unenforceable by a court of law, the remainder of this agreement will not be affected and all other provisions will remain valid and enforceable to the fullest extent permitted by law. ADDITIONAL NOTICES: Broker's Fees and the sharing of fees between brokers are not fixed, controlled, recommended, suggested, or maintained by the Board or Association of REALTORS®, MLS, or any listing service. The amount an owner agrees to pay a broker is negotiable. Fair housing laws require the Property to be shown and made available for lease to all persons without regard to race, color, religion, national origin, sex, disability, or familial status. Whether a lockbox is authorized or not, Owner is advised to safeguard and/or remove all valuables from the Property. The Texas Property Code requires certain types of locks or security devices & peep holes on all exterior doors of residential rental properties and requires smoke detectors in certain locations. The Property Code requires the Owner to re-key the security devices and to test the smoke detectors each time a new tenant occupies the Property. Broker cannot give legal advice. NOTICES: Notices must be in writing & will be affective when hand-delivered, mailed, or sent by fax or an electronic transmission. Broker at: 3601 SLAUGHTER LN AUSTIN TX 78749 Owner Printed Name(s)__ _________________________
Owner Printed Name(s)_______________________________________
Phone: _(512) 264-5387 ______________________ Fax: E-mail ___(512) 637-1737 ______________
Phone(s): _________________________________________________ Fax: ______________________________________________________ Email: ___ ______________________________
@Centex-Realty.com
Alltex Residential PLLC dba CENTEX REALTY TX License # 0505447 ____________________________________________Date_________ signature ____________________________________________Date__________ signature ______________________________________________________ Primary Owner's Social Security or Tax ID Numbers
______________________________________ Broker or Agent for Broker Signature ____________
Date