PROPERTY MANAGEMENT AGREEMENT
("Owner"), and
("Broker"), agree as follows:
1.
APPOINTMENT OF BROKER: Owner hereby appoints and grants Broker the exclusive right to rent, lease, operate, and manage the property(ies)
months after the original commencement date of this Agreement. After the exclusive term expires, this Agreement shall continue as a
non-exclusive agreement that either party may terminate by giving at least 30 days written notice to the other.
F. CONTRACTS; SERVICES: Contract, hire, supervise and/or discharge firms and persons, including utilities, required for the operation and
maintenance of the Property. Broker may perform any of Broker’s duties through attorneys, agents, employees, or independent contractors and,
except for persons working in Broker’s firm, shall not be responsible for their acts, omissions, defaults, negligence and/or costs of same.
G.
J. RESERVES: Maintain a reserve in Broker's trust account of $ .
K. DISBURSEMENTS: Disburse Owner's funds held in Broker's trust account in the following order:
(1) Compensation due Broker under paragraph 8.
(2) All other operating expenses, costs and disbursements payable from Owner’s funds held by Broker.
(3) Reserves and security deposits held by Broker.
(4) Balance to Owner.
L. OWNER DISTRIBUTION: Remit funds, if any are available, monthly (or ), to Owner.
M. OWNER STATEMENTS: Render monthly, (or ), statements of receipts, expenses
and charges for each Property.
(C.A.R. Form PMA, Revised 11/12)
C.
D.
E.
REPORTS, NOTICES AND SIGNS: Comply with federal, state or local law requiring delivery of reports or notices and/or posting of signs or notices.
H.
I. TRUST FUNDS: Deposit all receipts collected for Owner, less any sums properly deducted or disbursed, in a financial institution whose deposits
are insured by an agency of the United States government. The funds shall be held in a trust account separate from Broker’s personal accounts.
Broker shall not be liable in event of bankruptcy or failure of a financial institution.
N. BROKER FUNDS: Broker shall not advance Broker’s own funds in connection with the Property or this Agreement.
Owner's Initials ( ) ( )
The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized
reproduction of this form, or any portion thereof, by photocopy machine or any other
means, including facsimile or computerized formats. Copyright © 1991-2012,
CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS RESERVED.
Broker's Initials ( ) ( )
Date
Reviewed by
PMA REVISED 11/12 (PAGE 1 OF 4)
PROPERTY MANAGEMENT AGREEMENT (PMA PAGE 1 OF 4)
Prepared using zipForm® software
Agent:
Broker:
known as
,
and any additional property that may later be added to this Agreement ("Property"),
upon the terms below, for the period beginning (date) and ending (date) , at
11:59 PM. (If checked:) Either party may terminate this Property Management Agreement ("Agreement") on at least 30 days written notice
2. BROKER ACCEPTANCE: Broker accepts the appointment and grant, and agrees to:
A. Use due diligence in the performance of this Agreement.
B. Furnish the services of its firm for the rental, leasing, operation and management of the Property.
3. AUTHORITY AND POWERS: Owner grants Broker the authority and power, at Owner's expense, to:
A. ADVERTISING: Display FOR RENT/LEASE and similar signs on the Property and advertise the availability of the Property, or any part thereof, for
rental or lease.
B. RENTAL; LEASING: Initiate, sign, renew, modify or cancel rental agreements and leases for the Property, or any part thereof; collect and give
receipts for rents, other fees, charges and security deposits. Any lease or rental agreement executed by Broker for Owner shall not exceed
year(s) or shall be month-to-month. Unless Owner authorizes a lower amount, rent shall be:
at market rate; OR a minimum of
$ per ; OR see attachment.
TENANCY TERMINATION: Sign and serve in Owner’s name notices that are required or appropriate; commence and prosecute actions to evict
tenants; recover possession of the Property in Owner’s name; recover rents and other sums due; and, when expedient, settle, compromise and
release claims, actions and suits and/or reinstate tenancies.
REPAIR; MAINTENANCE: Make, cause to be made, and/or supervise repairs, improvements, alterations and decorations to the Property;
purchase, and pay bills for, services and supplies. Broker shall obtain prior approval of Owner for all expenditures over $
for any one item. Prior approval shall not be required for monthly or recurring operating charges or, if in Broker’s opinion, emergency expenditures
over the maximum are needed to protect the Property or other property(ies) from damage, prevent injury to persons, avoid suspension of
necessary services, avoid penalties or fines, or suspension of services to tenants required by a lease or rental agreement or by law, including, but
not limited to, maintaining the Property in a condition fit for human habitation as required by Civil Code §§ 1941 and 1941.1 and Health and Safety
Code §§ 17920.3 and 17920.10.
EXPENSE PAYMENTS: Pay expenses and costs for the Property from Owner’s funds held by Broker, unless otherwise directed by Owner.
Expenses and costs may include, but are not limited to, property management compensation, fees and charges, expenses for goods and
services, property taxes and other taxes, Owner’s Association dues, assessments, loan payments and insurance premiums.
SECURITY DEPOSITS: Receive security deposits from tenants, which deposits shall be given to Owner, or
placed in Broker’s trust
account and, if held in Broker’s trust account, pay from Owner’s funds all interest on tenants’ security deposits if required by local law or
ordinance. Owner shall be responsible to tenants for return of security deposits and all interest due on security deposits held by Owner.
Phone: Fax:
(i) Owner has no knowledge of lead-based paint or lead-based paint hazards in the housing except:
Owner Name: Date:
7.
LEAD-BASED PAINTA.
The Property was constructed on or after January 1, 1978.
The Property was constructed prior to 1978.OR
Owner has no reports or records pertaining to lead-based paint or lead-based paint hazards in the housing, except the following, which
Owner shall provide to Broker:
8.
COMPENSATION:
A.
Owner agrees to pay Broker fees in the amounts indicated below for:
(1) Management:
(2) Renting or Leasing:
(3) Evictions:
(4) Preparing Property for rental or lease:
(5) Managing Property during extended periods of vacancy:
(6) An overhead and service fee added to the cost of all work performed by, or at the direction of, Broker:
(7) Other:
B. This Agreement does not include providing on-site management services, property sales, refinancing, preparing Property for sale or refinancing,
.
.
.
.
.
.
If Owner requests Broker to perform services not included in this Agreement, a fee shall be agreed upon before these services are performed.
.
C. Maintain the Property in a condition fit for human habitation as required by Civil Code §§ 1941 and 1941.1 and Health and Safety Code §§
17920.3 and 17920.10 and other applicable law.
D. Pay all interest on tenants’ security deposits if required by local law or ordinance.
E. Carry and pay for: (i) public and premises liability insurance in an amount of no less than $1,000,000; and (ii) property damage and worker’s
compensation insurance adequate to protect the interests of Owner and Broker. Broker shall be, and Owner authorizes Broker to be, named as an
additional insured party on Owner’s policies.
F. Pay any late charges, penalties and/or interest imposed by lenders or other parties for failure to make payment to those parties, if the failure is
due to insufficient funds in Broker’s trust account available for such payment.
G. Immediately replace any funds required if there are insufficient funds in Broker’s trust account to cover Owner’s responsibilities.
.
Owner's Initials ( ) ( )
Copyright © 1991-2012, CALIFORNIA ASSOCIATION OF REALTORS®, INC.
Broker's Initials ( ) ( )
Date
Reviewed by
PMA REVISED 11/12 (PAGE 2 OF 4)
PROPERTY MANAGEMENT AGREEMENT (PMA PAGE 2 OF 4)
(1)
(2)
(ii)
B. POOL/SPA DRAIN
Any pool or spa on the property does (or, does not) have an approved anti-entrapment drain cover, device or system.
DISCLOSURE:
5.
affecting the Property; (ii) any delinquent amounts due under any loan secured by, or other obligation affecting, the Property; (iii) any bankruptcy,
insolvency or similar proceeding affecting the Property; (iv) any litigation, arbitration, administrative action, government investigation, or other pending
or threatened action that does or may affect the Property or Owners ability to transfer it; and (v) any current, pending or proposed special
assessments affecting the Property. Owner shall promptly notify Broker in writing if Owner becomes aware of any of these items during the term of
this Agreement.
6.
If Owner is not a California Resident or a corporation or LLC qualified to conduct business in California, Owner authorizes Broker to withhold and
transmit to California Franchise Tax Board ("FTB") 7% of the GROSS payments to Owner that exceed $1,500 received by Broker, unless Owner
completes and transmits to Broker FTB form 589, nonresident reduced withholding request, FTB form 588, nonresident withholding waiver, or
FTB form 590, withholding exemption certificate.
A.
TAX WITHHOLDING:
B. If Owner is a nonresident alien individual, a foreign entity, or other non-U.S. person, (Foreign Investor) Owner authorizes Broker to withhold and
transmit to the Internal Revenue Service (IRS) 30% of the GROSS rental receipts unless Owner elects to treat rental income as “effectively
connected income” by submitting to Broker a fully completed IRS form W-8ECI, Certificate of Foreign Person’s Claim for Exemption From
Withholding on Income Effectively Connected With the Conduct of a Trade of Business in the United States. A Foreign investor Owner will need to
obtain a U.S. tax payer identification number and file a declaration with the IRS regarding effectively connected income in order to complete the
form given to Broker. Further, the Foreign Investor Owner will be responsible for making any necessary estimated tax payments.
OWNER REPRESENTATIONS: Owner represents that unless otherwise specified in writing, Owner is unaware of: (i) any recorded Notice of Default
O.
4. OWNER RESPONSIBILITIES: Owner shall:
A. Provide all documentation, records and disclosures as required by law or required by Broker to manage and operate the Property, and
immediately notify Broker if Owner becomes aware of any change in such documentation, records or disclosures, or any matter affecting the
habitability of the Property.
B.
keysafe/ lockbox addendum (C.A.R., Form KLA).
Indemnify, defend and hold harmless Broker, and all persons in Broker’s firm, regardless of responsibility, from all costs, expenses, suits,
liabilities, damages, attorney fees and claims of every type, including but not limited to those arising out of injury or death of any person, or
damage to any real or personal property of any person, including Owner, for: (i) any repairs performed by Owner or by others hired directly by
Owner; or (ii) those relating to the management, leasing, rental, security deposits, or operation of the Property by Broker, or any person in
Broker’s firm, or the performance or exercise of any of the duties, powers or authorities granted to Broker.
modernization, fire or major damage restoration, rehabilitation, obtaining income tax, accounting or legal advice, representation before public
agencies, advising on proposed new construction, debt collection, counseling, attending Owner’s Association meetings or
Property Management
KEYSAFE/LOCKBOX:
(If checked) Owner authorizes the use of a keysafe/lockbox to allow entry into the Property and agrees to sign a
11. DISPUTE RESOLUTION:
A. MEDIATION: Owner and Broker agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction
before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or
claim to which this paragraph applies, any party (i) commences an action without first attempting to resolve the matter through mediation, or (ii)
before commencement of an action, refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney
fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT
THE ARBITRATION PROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 11C.
Owner Name: Date:
B.
ARBITRATION OF DISPUTES:
“NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING
OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL
ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO
HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING
UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN
THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO
THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF
CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.”
“WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT
OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."
Owner's Initials
/
Broker's Initials
/
R
Date
Reviewed by
PMA REVISED 11/12 (PAGE 3 OF 4)
PROPERTY MANAGEMENT AGREEMENT (PMA PAGE 3 OF 4)
C.
ADDITIONAL MEDIATION AND ARBITRATION TERMS: The following matters shall be excluded from mediation and
arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or
installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action; (iii) the filing or
enforcement of a mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or
bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of
attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the
mediation and arbitration provisions.
Owner's Initials ( ) ( ) Broker's Initials ( ) ( )
Copyright © 1991-2012, CALIFORNIA ASSOCIATION OF REALTORS®, INC.
(3) Other: .
9. AGENCY RELATIONSHIPS: Broker may act, and Owner hereby consents to Broker acting, as dual agent for Owner and tenant(s) in any resulting
transaction. If the Property includes residential property with one-to-four dwelling units and this Agreement permits a tenancy in excess of one year,
Owner acknowledges receipt of the “Disclosure Regarding Agency Relationships” (C.A.R. Form AD). Owner understands that Broker may have or
obtain property management agreements on other property, and that potential tenants may consider, make offers on, or lease through Broker,
property the same as or similar to Owner’s Property. Owner consents to Broker’s representation of other owners’ properties before, during and after
the expiration of this Agreement.
10.
.
Owner and Broker agree that any dispute or claim in Law or equity arising between them out of this Agreement or any
resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The
arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience,
unless the parties mutually agree to a different arbitrator. The parties shall have the right to discovery in accordance
with Code of Civil Procedure §1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9
of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court
having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act.
Exclusions from this arbitration agreement are specified in paragraph 11C.
NOTICES: Any written notice to Owner or Broker required under this Agreement shall be served by sending such notice by first class mail or other
agreed-to delivery method to that party at the address below, or at any different address the parties may later designate for this purpose. Notice shall
be deemed received three (3) calendar days after deposit into the United States mail OR
Property Management
C. Broker may divide compensation, fees and charges due under this Agreement in any manner acceptable to Broker.
D. Owner further agrees that:
(1) Broker may receive and keep fees and charges from tenants for: (i) requesting an assignment of lease or sublease of the Property; (ii)
processing credit applications; (iii) any returned checks and/or ( if checked) late payments; and (iv) any other services that are not in
conflict with this Agreement.
(2) Broker may perform any of Broker’s duties, and obtain necessary products and services, through affiliated companies or organizations in
which Broker may own an interest. Broker may receive fees, commissions and/or profits from these affiliated companies or organizations.
Broker has an ownership interest in the following affiliated companies or organizations:
Broker shall disclose to Owner any other such relationships as they occur. Broker shall not receive any fees, commissions or profits from
unaffiliated companies or organizations in the performance of this Agreement, without prior disclosure to Owner.
Owner Name: Date:
12. EQUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state and local anti-discrimination laws.
13. ATTORNEY FEES: In any action, proceeding or arbitration between Owner and Broker regarding the obligation to pay compensation under this
Agreement, the prevailing Owner or Broker shall be entitled to reasonable attorney fees and costs from the non-prevailing Owner or Broker, except as
provided in paragraph 11A.
14. ADDITIONAL TERMS: Keysafe/Lockbox Addendum (C.A.R. Form KLA); Lead-Based Paint and Lead-Based Paint Hazards Disclosure
(C.A.R. Form FLD)
15. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the parties are incorporated in this
Real Estate Broker (Firm)
Date
State
THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR
ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE
TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
This form is available for use by the entire real estate industry. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark
which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
R
Date
Reviewed by
PMA REVISED 11/12 (PAGE 4 OF 4)
PROPERTY MANAGEMENT AGREEMENT (PMA PAGE 4 OF 4)
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, INC.
a subsidiary of the California Association of REALTORS®
525 South Virgil Avenue, Los Angeles, California 90020
DRE Lic. #:
Agreement. Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter,
and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be
ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be
extended, amended, modified, altered or changed except in writing. This Agreement and any supplement, addendum or modification, including any
copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing.
Owner warrants that Owner is the owner of the Property or has the authority to execute this Agreement. Owner acknowledges Owner has
read, understands, accepts and has received a copy of the Agreement.
Owner Date
Owner
Print Name Social Security/Tax ID # (for tax reporting purposes)
Address City State Zip
Telephone Fax Email
Owner Date
Owner
Print Name Social Security/Tax ID # (for tax reporting purposes)
Address City State Zip
Telephone Fax Email
Address
City
Zip
Telephone
Fax
Email
Property Management
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