Realty Connection
2078 Hwy 14 East
Prattville, AL 36066
Robin Davies: Cell: 334-657-8495 Email:
Stephanie Irvine: Cell: 334-407-1350 Email:
Management Agreement
This agreement is made by and between Realty Connection, hereinafter referred to as BROKER and ______, hereinafter referred to as OWNER tosecure the services of BROKER in the management of real property known as: ______, hereinafter referred to as the PREMISES for a period beginning on ______, 20___ and is subject to the following terms and conditions.
1. APPOINTMENT AND AUTHORITY OF BROKER:
a. OWNER hereby appoints BROKER as the sole and exclusive BROKER to rent, lease,manage, collect and receipt for rents and operate the PREMISES. The OWNER, however, retains the right to make all management decisions concerning rental terms andmust advise BROKER of these terms at onset of Agreement. The agreed upon rentalamount for this specific property will be $ ______per month.
b. BROKER is authorized to secure the services of other real estate agents and conduct other marketing activities for purposes of securing a new tenant.
c. It is agreed that the BROKER is entitled to compensation provided herein in connection with any lease that may be executed during the term of this agreement, even if said lease was negotiated by the OWNER or any other party. BROKER shall be paid compensation at the rate as provided herein in connection with any lease which is being negotiated at the time of termination of this agreement if the tenant was introduced to the PREMISES by BROKER.
d. In the event that the premises is not rented or leased within ninety (90) days of the date of this Agreement, or remains vacant without being subject to a lease for any ninety (90)day period, either party may terminate this Agreement upon thirty (30) days writtennotice to the other party of such intention to terminate, provided that such writtennotice is delivered to the other party prior to the rental or lease of the premises throughthe efforts of BROKER. This contract will remain in effect until one party notifies theother party of their intentions to terminate the agreement. If a tenant is currentlyoccupying the premises, the termination date will be the same as the tenant lease enddate and no sooner. If the PREMISES contain multiple rental units, the terminationprovisions of this section will only apply if all units were not rented or leased withinninety (90) days of the date of this Agreement, or all units remained vacant for any ninety (90) day period. Termination of this Agreement shall not adversely affect therights of tenants under then existing leases.
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2. SPECIFIC AUTHORITY FOR REPAIRS AND ALTERATIONS
a. A Reserve Fund will / will not be established upon the commencement of thisAgreement. If owner agrees to keep reserve fund in escrow it will be maintained eitherfrom rental proceeds or from owner replenishing funds within a ten (10) day notice in theamount of $250.00.
b. OWNER hereby gives BROKER the authority and power and agrees to pay promptly ondemand all legitimate expenses in connection with the following: to contract for suchservices as emergency repairs, repairs necessary to protect PREMISES from damage ormaintenance as called for in state, city, county law or any ordinance or covenant whichshall apply to PREMISES or to upkeep PREMISES in cases of vacancy status. OWNERhereby gives BROKER the express authority and power to make any necessaryemergency repairs without prior consent from the OWNER. BROKER hereby agrees tomake OWNER aware of any necessary emergency repairs as soon as reasonablypossible. BROKER is authorized on behalf of OWNER to hire, discharge, supervise andpay any employees or contractors for work performed. All providers of services shall bedeemed to be acting on behalf of the OWNER and not the BROKER. BROKER will not be liable to the OWNER or others for any act, default or negligence on the part of suchpersons; contractors or other workmen, providing BROKER has taken reasonable care inengaging them or their employers.
3. BROKER’S RESPONSIBILITIES: In addition to the foregoing, the BROKER will perform the following functions on OWNER’S behalf:
a. Make reasonable efforts to collect all the rents and other fees due from tenants whensuch amounts become due, and deposit same into an agency account maintained onbehalf of the OWNER, but BROKER does not guarantee the payment of any tenant’srent;
b. Withdraw from such account all funds needed for proper disbursements for expenses payable by the OWNER including without limitation, BROKER’S compensation; andremit balance of rent to OWNER at OWNER’S address set forth in Paragraph 8 with awritten statement;
c. Rent is due and payable from the Tenant on or before the 5th day of each month. If rent is paid on time by Tenants, then BROKER agrees to disburse balance of rent owed toOWNER by the 12th of each month. If rent is paid late, then BROKER agrees to disbursebalance of rent owed to OWNER, including OWNER portion of late fees as soon asreasonably possible;
d. Collect and place into escrow accounts, as required by law, security deposits under any lease. BROKER is authorized to disburse the security deposit at such times and to suchpersons as BROKER shall in good faith believe to be entitled to such funds in accordance with the Alabama laws governing security deposits. Any interests earned onsaid deposits shall belong to BROKER; and
e. The late fee charge for this property will be based upon the agreed upon monthly rentalamount as stated in Paragraph 1. A late fee of $50 plus two (2%) percent per day for each day of unpaid rent after the 5th of the month will be charged. The late fee will be split between the owner and the BROKER.
4. BROKER’S COMPENSATION: In consideration of the services rendered by BROKER,OWNER agrees to pay BROKER the following forms ofcompensation:
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a. FOR SET-UP/ORIGINATION: A fee of $ 0.00 to be paid at the time of execution of thecontract.
b. FOR MANAGEMENT: a fee equal to 10% of the agreed upon rental amount as stated inParagraph 1. If a late payment is received, OWNER & BROKER agree to split late feeequally.
c. CHARGES TO TENANTS: Returned Check Charges and application fees paid byTenants under any lease are the property of the BROKER to offset expenses in enforcingthe respective provisions unless otherwise stipulated in Paragraph 15.
d. PET FEE: Pets ______will______will not be allowed to reside in thisdwelling. If pets are allowed what is the maximum number of pets permitted? ______If allowed, the non-refundable pet fee of $200.00for the first pet and $100.00 for each additional pet allowed will be used to cover any damages the pet(s) caused. If there are no repairs needed, the pet fee will be split equally betweenBROKER and OWNER and OWNER’s portion released to the OWNER uponcompletion of the lease agreement. If pets are only allowed outside, owner understands that Realty Connection can not guarantee that pets will not be allowed inside the premisis, such as in the case of inclement weather. OWNER hereby agrees that Realty Connection can not be held responsible for pets being allowed indoors even if stated that pets will be allowed outdoors only. If this is a concern, OWNER should not allow pets.
5. INDEMNIFICATION: OWNER agrees (a) to indemnify, defend and save the BROKER harmless from all loss, expense, damage, claim suits and costs whatsoever (includingwithout limit attorney’s fees and expenses) incurred and arising from performance or attemptedperformance by BROKER of its duties and powers hereunder whether for personal injury and/or property damage suffered by any person whomsoever on or about the PREMISES orotherwise, and (b) to carry at OWNER’S expense liability insurance, with proof of suchbeing provided to BROKER. The BROKER also shall not be liable for any error of judgment orfor any mistake of fact or law or for anything which BROKER may do or refrain from doing,hereinafter, except in cases of willful misconduct or gross negligence. The BROKER shall notbe responsible for any damage to the PREMISES, under any circumstances, by the Tenant orothers.
6. LEGAL PROCEEDINGS: BROKER is empowered to sign and/or cancel leases onOWNER’Sbehalf, to enforce the provisions of same, to institute legal action or otherproper proceedings tocollect rents and other sums due, and when expedient, to settle,compromise and release suchactions and suits, and to dispossess Tenants, and otherpersons, including without limitinstitution of eviction proceedings in the name of and onbehalf of OWNER. OWNER mayselect the attorney of OWNER’s choice to handle anysuch matters and incur court costs atOWNER’S expense. BROKER is not responsible for defending OWNER against any claim brought in a proceeding court action.
7. BINDING AUTHORITY: This agreement shall be binding upon the successors and assigns of BROKER, and upon the heirs, administrators, executors, successors, and assigns ofOWNER.
8. COMMUNICATIONS/NOTICE: OWNER agrees to receive any and all communications fromBROKER at the address, phone, fax number and/or email address listed on Property OwnerInformation Sheet on file. Any notice required or permitted to be given pursuant to theprovisions of this agreement shall be deemed given (1) when delivered personally, or(2) on thedate such notice is deposited in the United States Mail, postage prepaid, certifiedor registeredmail, return receipt requested, at that address.
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9. OWNER REPRESENTATIONS AND WARRANTIES:
a.OWNER represents and warrants to the BROKER that, to the best of OWNER’Sknowledge, the PREMISES are free of hazardous and/or toxic wastes and/orsubstances(as such terms are defined under applicable federal and state laws); thatthe PREMISESare fit for human
habitation; and there are no hidden or latentdefects or conditions on or affecting the PREMISES other than______;that the PREMISES are not the subject of any order to repair or to demolish orotherorder of any governmental authority; that the PREMISES comply with allcurrentlyapplicable laws, statutes and governmental rules and regulations; thatthe OWNER willat all times during the term of this Agreement fully andpromptly comply with thelawful requirements of applicable governmental authorities.
b. OWNER declares that all mortgage payments have been made and account is current.
c. OWNER warrants that there are operating smoke detectors on the premises.
d. OWNER agrees that prior to TENANT taking possession of the property for the first time, OWNER agree to have any carpeting in the home professionally cleaned, homeitself professionally cleaned (This is non-negotiable. Owner must agree to these terms. Cleaning done by OWNER is not allowed, this benefits both the OWNER and PROPERTY MANAGER), all light bulbs in working order, newly replaced air filterand grass cut and bushes and trees properly trimmed.
10. LEAD-BASED PAINT DISCLOSURE: For dwellings built before 1978, and as required byapplicable law, a Disclosure of Information on Lead-Based Paint and Lead-BasedPaintHazards (the “Disclosure”) must be signed by OWNER and attached to this agreement.OWNER represents that either (1) the improvements on the PREMISESwere all submitted,commenced, and constructed after December 31, 1977, or (2) the disclosure has been fullycompleted and is attached to this Agreement. OWNER agreesto provide BROKER with anysuch additional information or reports as may come to OWNER’S possession during the term of this Agreement. OWNER acknowledged thatBROKER has informed OWNER of theOWNER‘s obligations to provide a Tenant ofthe property with the pamphlet“Protect Your Family From Lead in Your Home” to provide information to a Tenantof the property with copies of available records and reports with respect to the property andlead-based paint and lead-based paint hazards, all pursuant to 42 USC 4582(d), as amended.
11. FORCE MAJEURE: Any delays in the performance of any obligations of BROKER underthis Agreement shall be excused to the extent that such delays are caused by wars, national emergencies, natural disasters, strikes, labor disputes, utility failures, governmentalregulations, riots, adverse weather, and other similar causes not within the control ofBROKER, and any time periods required for performance shall be extended accordingly.
12. PAYMENT FROM OWNER’S FUNDS: BROKER shall have no duty to expendBROKER’Sindividual funds in fulfillment of BROKER’S responsibilities under this agreement. Allpayment required or permitted to be made by BROKER shall be made from OWNER’S funds.OWNER agrees to deposit with BROKER promptly on demand such funds as may be necessaryin BROKER’S reasonable judgment for performance byBROKER as provided inthis Agreement.
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13. ARBITRATION: The parties agree that any controversy, complaint, claim, or dispute arisingout of this Agreement shall be settled by binding arbitration and the parties hereto specificallywaive any rights they have to commence an action other than arbitration against each other.
14. AVAILABILITY OF TENANTS: BROKER shall make a good faith effort to obtainTenantsfor the PREMISES, but BROKER makes no guarantee that tenants can be found.
15. OTHER STIPULATIONS:
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16. BINDING EFFECT: This Agreement shall be binding on, and for the benefit of the partieshereto and their respective heirs, successors and assigns. This Agreement shall begoverned by,interpreted under and enforced in accord with the law of the State ofAlabama. This is the entireAgreement between the parties and may not be modified exceptin writing signed by bothparties.
17. SURVIVAL: Indemnification and other provisions of this Agreement which benefitBROKERshall survive any termination of this Agreement.
18. FACSIMILE AND OTHER ELECTRONIC MEANS: The parties agree that the offer, anycounteroffer and/or acceptance of any offer or counteroffer may be communicated by useof afax or other secure electronic means, including but not limited to electronic mail and theinternet, and the signatures, initials and handwritten or typewritten modifications to any of theforegoing shall be deemed to be valid and binding upon the parties as if the original signatures,initials and handwritten or typewritten modifications were present on the documents in thehandwriting of each party.
19: TERMINATION: OWNER shall comply with the Alabama Uniform Residential LandlordTenant Act and other applicable laws. If BROKER is unable to comply with such lawsdue tothe action or inaction of OWNER concerning PREMISES, BROKER may immediatelyterminate this Agreement by reason of frustration of compliance with law, by providing writtennotice of termination to OWNER. Upon written notice of the termination of the ManagementAgreement to the Tenant(s) of PREMISES, BROKER shall have no liability to the Tenant(s)concerning any events related to the tenancyoccurring after the termination of this Agreement.
20. SALE OF PREMISES TO TENANT: It is hereby understood and agreed that if the tenant residing in
the home decides to purchase the home either during a lease period, upon lease terminating in any way
or within 90 days of the lease terminating, BROKER is entitled to a 4% commission for the sale of the
property. Furthermore, it is understood and agreed that BROKER will have the right to report the sale of
the property in the MLS and OWNER agrees to sign any forms necessary to report this sale and have the
BROKER represent them in the sale process.
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WHEREFORE, the parties have executed this Residential Management Agreement or caused the same to be executed by their authorized representative.
THIS AGREEMENT supersedes all prior written and oral agreements and can be amended only through a written agreement signed by both parties.
IN WITNESS WHEREOF, the parties hereto have subscribed their names on this _____ day of ______, 20______.
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Owner Owner
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Property Manager
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