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PROPERTY MANAGEMENT AGREEMENT __________________________________________________ (Hereinafter OWNER) and Property Manager, AMERICAN CAPITAL REALTY GROUP, INC. (Hereinafter AMCAP) mutually agree as follows: I. GRANT OWNER hereby employs and grants AMCAP the right to rent, lease, operate and manage the property known as: ________________________________________ _____________________________________________ (Hereinafter SUBJECT PROPERTY). II. TERM This AGREEMENT shall begin on and end on AGREEMENT shall automatically renew for successive periods. III. AMCAPs DUTIES a) AMCAP shall use due diligence in the performance of this AGREEMENT. b) AMCAP shall deposit all monies and/or receipts collected for OWNER (less any sums properly deducted or otherwise provided herein) in a Separate Account in a national or state institution qualified to engage in the trust or banking business, separate from AMCAPs business account. c) AMCAP shall render monthly reports and/or statements of receipts, expenditures and charges (Hereinafter DISBURSEMENTS) to OWNER. In the event that DISBURSEMENTS shall be in excess of the rents collected by AMCAP. OWNER hereby agrees to reimburse AMCAP promptly upon demand of AMCAP. d) AMCAP shall forward OWNERs Draw from OWNERs Separate Account on approximately the fifteenth (15th.) day of each month. This
SCOPE OF AMCAPs DUTIES At all times during the entire term and successive terms of this AGREEMENT, OWNER grants AMCAP the following authority and powers. OWNER agrees to pay the expenses in connection with OWNERs grant of authority and powers as follows: a) To advertise the availability for rental of the SUBJECT PROPERTY or any part thereof, and to display For Rent/For Lease signs thereof; b) To sign, renew or cancel rental agreements; c) To collect other charges and expenses due or to become due and give receipt therefore; d) To terminate tenancies and to sign and serve in the name of the OWNER such notices as are appropriate; e) To institute and prosecute actions to evict tenants and to recover possession of said premises in the name of OWNER and recover rents and other sums due; and when expedient, to settle, and/or release such actions or suits or reinstate such tenancies; f) To execute leases on behalf of OWNER. Each lease shall not exceed ___ months, unless first approved by OWNER; g) To make or cause to be made and supervise repairs and alterations, to purchase supplies; to mail items and pay all bills therefrom. AMCAP agrees to secure the prior approval of the OWNER on all expenditures in excess of $_____ for any one item, except monthly or recurring operation charges and emergency repairs as necessary to protect the property from damage or prevent damage to life or to the property of others or to avoid suspension of necessary services or to avoid penalties or fines or to maintain services to the tenants as called for in their leases; h) To hire, discharge and supervise all labor and employees required for the operation and maintenance of the premises. If instructed by OWNER, AMCAP may perform any of its duties as described in this AGREEMENT through OWNERs attorneys, agents and/or employees and shall be held harmless for their acts, defaults, negligent or intentional conduct; i) To enter into service contracts, if necessary, for electricity, gas, fuel, water, telephone, window cleaning, trash or rubbish hauling and other services or such of them as AMCAP shall deem advisable. Upon termination or default of this AGREEMENT, OWNER agrees to assume the obligation of any service contract so entered; j) To pay OWNERs scheduled loan indebtedness, property taxes, employee taxes, and special assessments pertaining to the SUBJECT PROPERTY;
k) At no additional expense to OWNER, OWNER shall allow AMCAP to be named as an additional insured and maintain in full force and effect the insurance coverage delineated in Section V, paragraph c; l) AMCAP shall have all other necessary authority to carry out the intent of the AGREEMENT and to protect the interests of the OWNER; m) AMCAP shall have the opportunity to list the SUBJECT PROPERTY for sale for a period of not less than 120 days upon OWNERs desire to sell SUBJECT PROPERTY; n) AMCAP will place Professional Management and Now-Renting signs on the complex. In addition, banners, flags and additional For Rent signs are available to attract walk-in/drive-by prospects. V. OWNERs DUTIES a) OWNER shall pay AMCAP, in consideration for the management services provided to OWNER by AMCAP, a management fee calculated on the basis of ____% of the total gross receipts/rents collected, including but not limited to laundry service fees, late fees and other miscellaneous income; b) OWNER shall except in the event of AMCAPs willful negligence, indemnify and hold AMCAP harmless from any and all costs, damages, attorneys fees, suits, liabilities, damages or claim for damages including but not limited to those arising out of any injury or death to any person or persons or damage to any property of any kind whatsoever, and to whomsoever, belonging, including OWNER, in any way or its performance or exercise of any of the duties, obligations, powers or authorities herein or hereafter granted to AMCAP; c) OWNER shall provide AMCAP with proof of coverage with a competent insurance broker, fire insurance, comprehensive general liability insurance including public liability and property damage coverage, Workers Compensation insurance in the minimum amount required by local law and/or any additional insurance necessary for OWNERs protection. OWNER hereby directs AMCAP to acquire (unless policies are already in place) and pay for said insurance coverage from the OWNERs Separate Account; d) ______ For Retail or Commercial properties, in consideration for the leasing services provided to OWNER by AMCAP, a leasing fee calculated on the basis of _____%; e) OWNER shall, if OWNER requests for AMCAP to undertake work exceeding that usual to normal management, then OWNER and AMCAP shall be agreed upon for such services before work begins. Normal management does not include
modernization, refinancing, fire restoration, major rehabilitation, obtaining income tax advice, presenting petitions to planning or zoning committees, advising on proposed new construction, preparation and submission of annual loan requirements or other counseling; f) OWNER shall be responsible for costs of advertising. VI. ACCOUNT PROVISIONS Upon termination or default of this AGREEMENT, OWNER agrees that ________ shall remain in OWNERs Separate Account for a minimum of sixty (60) days to ensure payment of all expenses, unless otherwise directed in writing by AMCAP. VII. NOTICE REQUIREMENTS If it shall become necessary for AMCAP or OWNER to give notice of any kind, the notice shall be written and served by delivering such notice personally or by registered or certified mail to the address shown under the signature to the AGREEMENT. This AGREEMENT shall be binding upon the successors of AMCAP, and the heirs, administrators, executors, successors and assigns of the OWNER, except upon sale of SUBJECT PROPERTY, which automatically voids this AGREEMENT. VIII. ATTORNEYS FEES In the event a lawsuit is instituted to enforce the terms of the AGREEMENT, or to determine the rights of either party in relation to this AGREEMENT, the prevailing party herein shall be entitled to reasonable attorneys fees. IX. DEFAULT a) OWNER shall be in default under this AGREEMENT if OWNER fails to timely make payment to AMCAP as described herein or if OWNER fails to perform any of the obligations described herein. b) If at any time AMCAP reasonably believes that the prospect of OWNERs payment of any indebtedness is impaired, then OWNER shall be considered in default. c) OWNER shall be in default if OWNER is involved in the following events: insolvency, commencement of bankruptcy or the sale of SUBJECT PROPERTY. AMCAP shall be held harmless in the event of OWNERs bankruptcy.
TERMINATION With cause, AMCAP or the OWNER shall have the right to terminate this AGREEMENT with thirty (30) days written notice.
Parties acknowledge having read and understood the foregoing prior to execution and receipt of a duplicate original.
OWNER: __________________________ DATE: _____________________________ ADDRESS: _____________________________________________________________ AMCAP __________________________ DATE: _____________________________ 12631 E. Imperial Highway, Suite F-200 Santa Fe Springs, CA 90670 A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE. IF YOU DESIRE LEGAL ADVICE, PLEASE CONSULT YOUR ATTORNEY.
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