AGREEMENT TO MANAGE AND LEASE REAL ESTATE
(This is a legally binding contract. If you do not understand it, seek legal advice.)
This agreement to manage and lease real estate is made and entered into as of this ________ day of __________________, _________ by
and between _______________________________________________________________________ hereinafter called the Owner and
__________________________________________________________________ hereinafter called the Broker.
Whereas, Owner is the owner of the property known as ______________________________________________________ located at
_________________________________________ and legally described as _________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
Owner hereby employs Broker exclusively to rent, lease, operate and manage said property subject to the terms and conditions of this
agreement.
In consideration of the management and leasing functions to be performed by Broker under this agreement, Owner agrees to pay Broker a
fee or fees for services rendered at the rates hereinafter set forth. Owner recognizes Broker as agent in any negotiations relative to said
property or any part thereof, which may have been initiated during the term hereof, and if consummated, shall compensate Broker in
accordance with the rates hereinafter set forth. Such compensation is due and payable on demand and may be deducted by Broker from
gross receipts.
Management: _______________________________________________________________________________(plus sales tax)
Leasing: ___________________________________________________________________________________(plus sales tax)
The term of this agreement shall commence on the _________ day of ____________________, ___________ and expire on the
___________ day of ___________________________, ____________. This agreement is automatically renewable, upon expiration, for
annual periods unless terminated by either party giving 30-days' written notice to the other party in advance of such termination date.
However, the termination of this agreement shall not affect the right of Broker to receive leasing commissions or fees which have accrued
on the date specified in such notice and have not been paid.
As agent for Owner, Broker owes Owner the duties of loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and
full accounting. Broker must disclose all known material facts about the property which could affect a tenant's use or enjoyment of the
property, disclose information which could have a material impact on either party's ability to fulfill their obligations under the lease
agreement, respond honestly and accurately to questions concerning said property, and deal honestly and fairly with all parties.
The duties and responsibilities of Broker in connection with the management of said property are as follows:
1. Broker shall take all reasonable steps to collect and enforce the collection of all rentals and other charges due Owner from tenants
of said property in accordance with the terms of their tenancies.
2. From gross revenues collected from said property, Broker is hereby authorized to accrue and make disbursements from Owner's
funds for contractual mortgage payments, property and employee taxes, salaries and any other compensation due and payable to
the employees of Owner, special assessments, premiums for hazard and liability insurance and any other insurance required, and
sums otherwise due and payable by Owner as operating expenses which are incurred pursuant to the terms of this agreement
including management and other fees as provided herein.
3. Broker shall deposit gross revenues collected into a special trust account in a bank whose deposits are insured by the Federal
Deposit Insurance Corporation. Broker shall have authority to endorse checks payable to Owner, deposit funds of Owner into
said trust account, and to draw on such account any payment to be made by Broker to discharge any of the liabilities or
obligations incurred by Broker pursuant to this agreement.
4. Broker shall arrange all repairs, replacements and decorating necessary to maintain said property in its present condition and for
the operating efficiency of said property. The expense of any one item of maintenance shall not exceed the sum of $___________
unless authorized by Owner or unless Broker determines it to be an emergency. Owner approval is not required in the event of an
emergency where immediate repairs are required to preserve the property, continue essential services to the property, avoid
danger to life or property, or to comply with federal, state or local law.
5. Broker shall have the authority to negotiate, prepare and execute all leases and to cancel and modify existing leases as agent for
Owner.
