Llc Operating Agreement for Real Estate Brokerage by okg12282

VIEWS: 115 PAGES: 6

More Info
									                                           COSMOPOLITAN PROPERTIES, LLC
                                          PROPERTY MANAGEMENT AGREEMENT

 THIS IS A LEGALLY BINDING CONTRACT. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE YOU ON REAL ESTATE. IF
                                 YOU DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY.

In consideration of the covenants herein contained, __________________________________________ hereinafter called OWNER
and COSMOPOLITAN PROPERTIES, LLC hereinafter called AGENT, agree as follows:

EMPLOYMENT: The OWNER hereby employs the AGENT exclusively to rent, lease, operate and manage the property (hereinafter
called the PREMISES), described as: ___________________________________________________ upon the terms and conditions
hereinafter set forth for a period of _______________ beginning on the __________ day of _______________ 20____ and ending
on the _________ day of _______________ 20____. Either party may terminate this Agreement upon THIRTY (30) days written
notice. See LIQUIDATED DAMAGES. This Agreement contains an automatic renewal provision for annual periods, until canceled, IN
WRITING, by either party, giving 30 day notice.

ACCEPTANCE OF EMPLOYMENT:           The AGENT accepts the employment and agrees:

    a.   To use diligence in the management of the PREMISES for the period and upon the terms herein provided, and agrees to
         furnish the services of its organization for the renting, leasing, operating and managing of the herein described PREMISES.

    b.   To render monthly statements of receipts, expenses and charges to the following person(s) at the address(es) shown:

NAME:                                                          NAME:
_______________________________________                        _______________________________________
_______________________________________                        _______________________________________
_______________________________________                        _______________________________________
PHONE #: _______________________________                       PHONE #: _______________________________
E-MAIL: ________________________________                       E-MAIL: ________________________________

PROCEEDS TO: In the event the disbursements and charges shall be in excess of the receipts, the OWNER agrees to pay such
expenses promptly, but nothing herein contained shall obligate the AGENT to advance its own funds on behalf of the OWNER.

    c.   ALL RECEIPTS COLLECTED FOR THE OWNER will be deposited into an interest bearing trust account as set forth in Arizona
         Statutes and will be kept separate from AGENT’S personal account. ALL SECURITY DEPOSITS COLLECTED BY OWNER will be
         deposited into an interest bearing trust account. All interest collected on the trust accounts will be paid to AGENT. AGENT
         will not be liable in the event of bankruptcy or failure of depository.

AUTHORITY AND POWERS:        The OWNER hereby gives AGENT the following authority and powers and OWNER AGREES TO
ASSUME THE EXPENSE IN CONNECTION HEREWITH:

    a.   To advertise the availability for rental of the PREMISES or any part thereof, to display “FOR RENT” signs, to sign, renew
         and/or cancel leases for the PREMISES or any part thereof, to collect rent due, give receipts, terminate tenancies, sign and
         serve notices in the name of the OWNER, to institute and prosecute actions to evict tenants and recover possession of


1|Page

                                                                                              Owner Initials ________ / ________
        PREMISES, to sue in the name of the OWNER and recover rents and other sums due and when expedient, to settle,
        compromise and release such actions or suits or reinstate such tenancies.

   b.   To make or cause to be made and supervise repairs, alterations and/or decorating on PREMISES, purchase supplies and pay
        all bills incurred. The AGENT agrees to secure the prior approval of the OWNER on all expenditures in excess of $300.00 for
        one item, EXCEPT monthly or recurring operating charges and/or EMERGENCY REPAIRS in excess of the maximum, if, in the
        opinion of the AGENT, such repairs are necessary to protect PREMISES from damage or maintain services to the tenants as
        called for in their lease and to comply with federal, state, or local laws, such an emergency repairs shall be made by Agent
        at Owner’s expense without prior approval, and owner shall be notified within 48 hours of such emergency repair.

   c.   To hire, discharge and supervise all labor required for the operation and maintenance on the PREMISES, it being agreed that
        all work done on the PREMISES will be supplied by INDEPENDENT CONTRACTORS, who are not deemed employees of either
        the AGENT or OWNER. The AGENT will receive no payment of any kind from the independent contractors doing work to
        the PREMISES. The AGENT may perform any of its duties through OWNER’S attorneys and/or agents, but shall not be
        responsible for their acts, defaults or negligence if reasonable care has been exercised in their appointment and retention.
        It is understood that AGENT will in no way be responsible for payment of any repairs and/or maintenance to the PREMISES
        and has acted solely as a facilitator for the OWNER in this instance.

   d.   To make contract for any necessary utilities and trash or rubbish hauling and other services or such services as the AGENT
        shall deem advisable, the OWNER to assume the obligation of any contract so entered into at the termination of this
        Agreement.

   e.   The OWNER agrees to establish a permanent operating reserve to be held in a US Bank Account allowing “Agent”
        management rights and signing privileges, in the amount of $300.00.

INDEMNIFICATION AND FURTHER AGREEMENT:

   a.   To indemnify, defend and SAVE THE AGENT HARMLESS from all damage suits in connection with the management of the
        PREMISES and/or any liability for damage to the property and/or injuries or death of any employee, tenant or other person
        whomsoever. The OWNER will carry, at owner’s expense, public liability insurance to adequately protect owner’s interest
        and that insurance will be in form, substance and amount reasonably satisfactory to the AGENT. IN THE EVENT THE
        PROPERTY HAS A POOL AND/OR SPA, THE OWNER WILL CARRY, AT OWNER’S EXPENSE, A MINIMUM $1,000,000.00 EXCESSS
        LIABILITY INSURANCE POLICY NAMING AGENT AS CO-INSURED.

   b.   To pay all expenses incurred by the AGENT, including, but not limited to, international phone/fax transmissions, postage
        costs, copying costs, bank charges, ADVERTISING COSTS, reasonable attorney’s fees, AGENT’S costs for time or actual costs
        in connection with any proceeding or suit involving an alleged violation by the AGENT or OWNER, or both, of any law
        pertaining to fair credit reporting, environmental protection, rent control, taxes, illegal discrimination on the basis of race,
        sex, color, religion, familial status, national origin, mental or physical disability OR any other charges which are an expense
        to the property.

   c.   When applicable, the PREMISES shall be removed from the market upon approval of a tenant application.

   d.   Nothing herein shall be construed as a solicitation for a listing if the PREMISES is currently listed by another broker.




2|Page

                                                                                               Owner Initials ________ / ________
The OWNER also agrees to pay reasonable expenses (or appropriate amount of such expenses where other employees or AGENT
also benefit from the expenditure) incurred by the AGENT in obtaining compliance with any law affecting the PREMISES or activities
thereto.

RENTAL RATES:

Minimum acceptable rent: $________
Current charges include a $_________ security Deposit paid by the lessee, administrative fee of $150.00, paid by lessee, and a
credit/criminal check fee of $35.00, paid by lessee. City of Phoenix tax will be charged on all money collected except the security
deposit amount.

Pets: ____________ with __________deposit.

Other special conditions: __________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

MANAGEMENT FEES:


    a.   MANAGEMENT FEE: 7.5 % OF MONTHLY GROSS RECEIPTS FROM THE OPERATION OF THE PREMISES during the period this
         AGREEMENT remains in full force and effect. Gross receipts are all amounts received including, but not limited to, RENTS
         AND ANY NON REFUNDABLE SECURITY DEPOSITS. LATE FEES WILL BE RETAINED BY THE AGENT.


    b.   LEASING FEE $300.00 OF FIRST MONTH’S RENT ON ANY NEW LEASE OBTAINED BY THE AGENT (Waived for renewals).


    c.   ACCOUNT SET- UP FEE: $50


    d.   ADVERTIZING FEE: $60/mo. when vacant.


    e.   MAINTENANCE AND REPAIR: Routine maintenance repairs will be billed at $40/hr. (billed in quarter hour increments of
         $10.00 per 15 min.), parts shall be billed at cost plus 15% administrative fee. Agent is authorized to make or cause to be
         made, through contracted services or otherwise, all ordinary repairs and replacements reasonably necessary to preserve
         the Premises in its present condition and for the operating efficiency of the Premises, and all alterations required to comply
         with lease requirements, governmental regulations, or insurance requirements. Routine repairs that exceed $300.00 will be
         approved by owner prior to Repairs completion.



    f.   TURNKEY READINESS: A Flat fee of $_________will be charged for turnkey readiness prior to a new renter taking
         occupancy, which includes maintenance labor, touch up paint, standard carpet cleaning and housecleaning. Any parts for


3|Page

                                                                                              Owner Initials ________ / ________
         repair will be billed at cost plus 15% administrative fee. A full paint may be done at additional fee negotiated between
         OWNER/AGENT.
         VACANT PROPERTIES NEEDING EXTENSIVE REFURBISHMENT: FEE TO BE NEGOTIATED BETWEEN OWNER/AGENT.

                 TURNKEY FEES:             Condo:                                      Single Family Home:
                                           $375/one bedroom                            $475 up to 1800 sq. ft.
                                           $400/two and three bedrooms                 $575 over 1800 sq. ft.

    g.   A MINIMUM $100.00 fee will be charged for time and expenses related to an eviction proceeding.

MARKETING PROPERTY FOR SALE:              If property is sold through any Broker NOT referred to OWNER by AGENT during the
term of this Agreement, the balance of commission on any remaining lease will be paid to AGENT, within five working days.
Management Agreement and/or services will be terminated upon receipt by AGENT of an executed listing agreement with any
Broker NOT referred to OWNER by AGENT. Any balance of commission due AGENT will be paid to AGENT within five days.



OTHER ITEMS OF MUTUAL AGREEMENT: __________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________


CANCELLATION AND LIQUIDATED DAMAGES:                 This Management Agreement may be terminated by either party without
cause, with a THIRTY (30) DAY WRITTEN NOTICE. Should the OWNER cancel this Agreement for any reason, the AGENT shall be
entitled to liquidated damages in the amount of 100% of the remaining aggregate value of the lease for which the AGENT was the
procuring cause, as evidenced by the fully executed lease agreement on file with AGENT. Payment of liquidated damages may, but
is not limited to, withdrawal from any owner funds in AGENT’S Trust Account. In the event OWNER notifies any tenant, for which
the AGENT is procuring cause, to pay rent to OWNER, AGENT will consider that a cancellation by owner and will be entitled to above
described liquidated damages.

FURTHER AGREEMENT:

    a.   The OWNER expressly withholds from AGENT any power or authority to make any STRUCTURAL changes in any building or
         to make any other major alterations or additions in or to any building or equipment, EXCEPT in the event emergency repairs
         are required because of danger to life or property OR which are immediately necessary for the preservation and safety of
         the tenants and/or occupants OR are required to avoid the suspension of a necessary service as set forth in Arizona
         Statutes.

    b.   The AGENT does not assume and is given no responsibility for compliance of any building on the PREMISES or any
         equipment therein. The AGENT shall notify the OWNER promptly of any notices, complaints, warnings or summons
         received relating to matters concerning requirements of any statute, ordinance, law or regulation of any governmental
         body or public authority, but the AGENT does not assume nor is given responsibility for compliance to these requirements.
         The OWNER represents that, to the best of his/her knowledge, the PREMISES and all equipment comply with all such
         requirements and authorizes the AGENT to disclose the ownership of the PREMISES to any such official. In compliance with
         Federal and State Statutes, the OWNER shall notify AGENT of any knowledge of LEAD BASED PAINT OR MOLD which might
4|Page

                                                                                           Owner Initials ________ / ________
         be or have been present in the property. OWNER agrees to indemnify and hold harmless AGENT’S representatives and
         employees from all loss, cost, expenses or liability whatsoever which may be imposed on them or any of them by reason of
         any present or future violation of alleged violation of such laws, ordinances, statutes or regulations.

    c.   In the event it’s alleged or charged that any building on the PREMISES or any equipment therein or any act by the OWNER
         with respect to the PREMISES or sale, rental, or other disposition thereof, fails to comply with, or is in violation of any of the
         requirements of any constitutional provision, statute, ordinance, law or regulation of any governmental body or any order
         ruling of any public authority or official thereof having or claiming to have jurisdiction thereover, and the AGENT, in its sole
         and absolute discretion, considers that the action or position of the OWNER may result in damage or liability to the AGENT,
         the AGENT shall have the right to cancel this Agreement any time by written notice to the OWNER of its election to do so,
         which cancellation shall be effective upon service of such notice. Such notice may be served personally, by certified mail,
         verified fax or e-mail. Such cancellation shall not release the indemnities of the OWNER set forth above and shall not
         terminate any liability or obligation of the OWNER to the AGENT for any payment, reimbursement, or other sum of money
         then due and payable to AGENT.

    d.   IN THE EVENT THE PROPERTY IS SOLD DURING THE TERM OR WITHIN 60 DAYS OF THE EXPIRATION OF THIS AGREEMENT TO
         A PARTY RESIDING IN THE PROPERTY AS A TENANT AND AS THE RESULT OF AGENT’S EFFORTS IN SECURING THE TENANT,
         OR TO ANY OTHER PARTY INTRODUCED TO OWNER BY AGENT, THEN AGENT’S BROKER SHALL BE PAID A REAL ESTATE
         BROKERAGE FEE IN THE AMOUNT OF 5% OF THE GROSS SALE PRICE OF THE PROPERTY. WITH THE PERMISSION OF OWNER,
         AGENT MAY REFER THE PROPERTY TO ANOTHER COOPERATING BROKER FOR MARKETING.

    e.   The OWNER shall pay or reimburse the AGENT for any sums of money due under this agreement for services performed
         prior to termination, not withstanding any termination of this Agreement. All provisions of this Agreement that require the
         OWNER to have insured of defined, reimbursed or indemnified the AGENT shall survive any termination and, if AGENT is or
         becomes involved in any proceeding or litigation by reason of having been the OWNER’S AGENT, such provisions shall
         apply. Thirty-five days after termination of this Agreement, reimbursement for all moneys remaining in the property
         accounts maintained by the AGENT, EXCEPT for moneys needed for unpaid obligations incurred during the term of the
         Agreement, will be made to the OWNER. A final accounts receivable and payable list and final bank reconciliation will be
         sent to OWNER within seventy-five days after termination of the Agreement. All property management records, including
         but not limited to, rental and management agreements, financial and maintenance records will be kept by AGENT for a
         period of three years after termination of Management Agreement as set forth in Arizona Statutes.

    f.   ***MEDIATION CLAUSE***: OWNER and AGENT agree to mediate any dispute or claim arising out of or relating to this
         Agreement, any alleged breach of this Agreement or services provided in relation to this Agreement before resorting to
         court action. Any agreement signed by the parties pursuant to the mediation conference shall be binding. All mediation
         costs will be paid equally by the parties to the Agreement. Duties shall include, but are not limited to, allegations made by
         OWNER or AGENT of concealment, misrepresentation, negligence and/or fraud. IN ANY COURT ACTION, ATTORNEY FEES
         ARE AWARDED TO PREVAILING PARTY.

This Agreement shall be binding upon the successors and assigns of the AGENT, and the heirs, administrators, successors and assigns
of the OWNER.

AGENCY VERIFICATION: AGENT is and shall remain the exclusive agent of the OWNER. As such, the AGENT is expressly directed by
the OWNER, to execute on behalf of the OWNER, all documents that may be required under current Law or Rule as they relate to an
Agency Relationship another broker may have with their client.


5|Page

                                                                                                Owner Initials ________ / ________
STATUTORY AGENT:          OWNER shall pay AGENT $10.00 per year to act, at OWNER’S direction, as OWNER’S STATUTORY AGENT in
compliance with State Statutes regarding Slum Abatement.

ORIGINATION OF AGREEMENT:         This document was executed in the state of Arizona.




IN WITNESS WHEREOF, the parties hereto have affixed or caused to be affixed their respective signatures this __________ day of
_______________ 20___.

OWNER(S) – For tax purposes, include Social Security Numbers or Tax ID Numbers.


_______________________________________                     _______________________________________
Signature of Owner                                          Signature of Owner
Social Security Number: ___________________                 Social Security Number: ___________________


_______________________________________                     _______________________________________
Signature of Owner                                          Signature of Owner
Social Security Number: ___________________                 Social Security Number: ___________________



AGENT: ________________________________
E-Mail: _________________________________




BROKER ACCEPTANCE: _________________________________________ DATE: ___________________

FILE NUMBER: ___________________________




6|Page

                                                                                          Owner Initials ________ / ________

								
To top