Property Management Agreement - Template, Sample Form Pro · NG-law

PROPERTY MANAGEMENT AGREEMENT

THIS PROPERTY MANAGEMENT AGREEMENT (this "Agreement") is made on ________

BETWEEN

________, an individual of the following address:

________

(hereinafter referred to as the "Property Owner" which expression shall, where the context so admits, include his/her heirs, personal representatives, successors-in-title and assigns) of the one part.

AND

________, an individual of the following address:

________

(hereinafter referred to as the "Property Manager" which expression shall, where the context so admits, include his/her heirs, personal representatives, successors-in-title and permitted assigns) of the other part.

The Property Owner and the Property Manager are hereinafter individually referred to as a "Party" and collectively as the "Parties".

RECITALS

A. The Property Owner is the lawful owner of, and beneficially entitled to, the property described below (the "Rental Property") and desires to appoint the Property Manager to manage the same on the terms and conditions set out herein:

________

B. The Property Manager has represented that it possesses the requisite skill, experience and resources to manage the Rental Property and has agreed to do so in accordance with the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

1. THE RENTAL PROPERTY

1.1. The Property Owner hereby appoints the Property Manager, and the Property Manager hereby accepts the appointment, to manage the following property (the "Rental Property"):

________

1.2. The Rental Property is situate at ________ and is covered by title document number ________.

2. DESCRIPTION OF SERVICES

The Property Manager agrees to manage the Rental Property and to provide the following services in relation to the Rental Property (the "Services"):

(I) Managing the Rental Property by leasing, short-letting and operating the Rental Property in compliance with the applicable tenancy laws of ________.

(II) Collecting monies, rent, charges and other fees payable by tenants and remitting the same to the Property Owner. The Property Manager may, with the Property Owner's prior written consent, engage a legal practitioner or licensed estate agent to lawfully recover rent, and the Property Manager shall be reimbursed for reasonable expenses duly incurred and supported by receipts.

(III) Providing monthly remittance of rent and other monies collected from tenants. Such monies shall be remitted to the Property Owner on the ________ day of every month.

(IV) Setting the rent for the Rental Property to adequately reflect the prevailing market price for comparable properties in the same location, subject to the Property Owner's approval.

(V) Issuing rental receipts to tenants and maintaining accurate records of all leases granted, including the duration, commencement date and termination date of each lease.

(VI) Placing advertisements and conducting screening of prospective tenants who meet the Property Owner's qualifications and in accordance with applicable laws and regulations.

(VII) Making alterations and improvements to ensure the proper maintenance of the Rental Property when needed and upon securing the Property Owner's prior written approval.

(VIII) Carrying out repairs and routine maintenance of the Rental Property, and obtaining the Property Owner's prior written approval before incurring costs on repairs, renovations or alterations. This obligation includes engaging and paying contractors, designers and other service providers for such repairs or improvements.

(IX) Engaging cleaning services to ensure that the Rental Property is clean before letting and after a tenant vacates the Rental Property.

3. COMPENSATION

3.1. As compensation for all the Services rendered by the Property Manager under this Agreement, the Property Manager shall receive a fee in the sum of \u20a6________ (________) (the "Fee").

3.2. Such compensation shall be paid in the following manner: ________.

3.3. The Property Manager shall be entitled to be reimbursed for all incidental and out-of-pocket expenses reasonably incurred on behalf of the Property Owner, provided that the same have been authorised in writing by the Property Owner before being incurred and are supported by appropriate receipts.

3.4. The Fee is exclusive of Value Added Tax (VAT), which, where applicable, shall be charged in accordance with the Value Added Tax Act (Cap V1, Laws of the Federation of Nigeria 2004, as amended). The Parties shall comply with their respective obligations under the Personal Income Tax Act and other applicable tax legislation, including any obligation to deduct and remit withholding tax.

4. INVOICING AND PAYMENT

4.1. The Property Manager shall submit an invoice indicating a description of the work performed. The invoice shall be sent to the Property Owner on ________ of each ________.

4.2. The Property Owner shall pay each undisputed invoice within ________ days of receipt.

4.3. If the Property Owner fails to pay any undisputed sum after the due date, the Property Owner shall pay \u20a6________ (________) to the Property Manager as late payment charges.

5. OBLIGATIONS OF THE PROPERTY MANAGER

(I) The Property Manager shall be the primary point of contact for tenants and shall manage tenant enquiries, complaints and any problems or concerns that may arise during the tenancy.

(II) The Property Manager shall provide the Services diligently, professionally and with due care and skill.

(III) The Property Manager shall be responsible for the provision of all tools and equipment necessary to render the Services required under this Agreement.

(IV) The Property Manager shall comply with all applicable federal, state and local laws and regulations, including the applicable tenancy and rent control laws, and shall verify correct documentation in respect of the Rental Property.

(V) The Property Manager shall, where it processes any personal data of tenants or third parties, comply with the Nigeria Data Protection Act 2023 and any applicable subsidiary regulations.

(VI) The obligations outlined herein may be modified as mutually agreed in writing by the Parties and may include such additional duties as the Parties may agree.

6. OBLIGATIONS OF THE PROPERTY OWNER

(I) The Property Owner shall execute all documents necessary to grant authorisation to the Property Manager to manage the Rental Property on the Property Owner's behalf, including contracts, powers of attorney and letters of authorisation.

(II) The Property Owner shall provide the Property Manager with all documents, materials, information and equipment related to the Rental Property necessary for performing the Services under this Agreement.

(III) The Property Owner shall cooperate with the Property Manager and respond promptly to any reasonable requests or queries from the Property Manager.

(IV) The Property Owner shall pay all property-related expenses, such as ground rent, tenement rates, property taxes, insurance premiums and utility bills, and shall maintain sufficient reserves for contingencies.

(V) The Property Owner shall make decisions regarding the Rental Property and approve maintenance or repair work, lease agreements and rental rates.

(VI) The Property Owner shall maintain open communication with the Property Manager, provide feedback and discuss any changes or updates regarding the property management arrangement.

7. INDEMNITY

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7.2. The Property Owner shall not be liable to indemnify the Property Manager under the following circumstances:

(I) personal injury, property damage or other harm directly attributable to the Property Manager's negligence or misconduct; and

(II) Claims originating from the Property Manager's failure to comply with applicable laws, regulations or responsibilities relating to the Rental Property, provided that such failure is not the consequence of the Property Owner's act or omission.

7.3. This indemnity shall not apply to any Claims arising from the Property Manager's negligence, wilful misconduct or intentional breach of this Agreement.

7.4. The indemnification obligations set out in this clause shall survive the termination or expiration of this Agreement.

8. REPRESENTATIONS AND WARRANTIES

8.1. The Property Owner represents and warrants that it is the lawful owner of the Rental Property and has the full right, power and authority to enter into this Agreement and to appoint the Property Manager to manage the Rental Property.

8.2. The Property Owner represents and warrants that the Rental Property is free from any encumbrances, liens or legal disputes that may affect the Property Manager's ability to perform the Services under this Agreement.

8.3. The Property Manager represents and warrants that it has the necessary skills, experience, qualifications and resources to perform the Services in a professional and competent manner in accordance with this Agreement.

8.4. The Property Manager represents and warrants that it shall comply with all applicable laws, regulations and standards in the performance of the Services under this Agreement.

8.5. Each Party represents and warrants that the execution and performance of this Agreement does not and will not conflict with or breach any other agreement or obligation to which it is bound.

9. TERM AND TERMINATION

9.1. This Agreement shall commence on ________ (the "Effective Date") and shall continue until ________, unless terminated earlier by either Party in accordance with this Agreement.

9.2. Either Party may terminate this Agreement where the other Party fails to perform a fundamental obligation hereunder. The Property Owner may terminate this Agreement where the Property Manager fails to fulfil the Services and fails to remedy such default within thirty (30) days of written notice.

9.3. The Property Manager may terminate this Agreement where the Property Owner fails to pay the Fee due under this Agreement after written demand.

9.4. The Property Owner may terminate this Agreement where the Property Manager engages in any act amounting to gross misconduct.

9.5. Either Party may terminate this Agreement without cause by giving the other Party not less than ________ days' prior written notice.

9.6. Upon termination or expiry of this Agreement, the Property Manager agrees to:

(I) promptly deliver the keys to the Rental Property, together with all confidential information, documents, books, materials and any other property associated with the Rental Property held by the Property Manager, to the Property Owner;

(II) delete all data concerning the Rental Property from any electronic devices, hard disks or similar storage media owned by the Property Manager, subject to any retention obligations imposed by law; and

(III) not disclose or use any of the Property Owner's confidential information or trade secrets, and the Property Owner shall be entitled to seek an injunction or any other legal remedy to prevent such disclosure or use.

9.7. Upon termination, the Property Owner shall pay all Fees accrued up to the date of termination and any fees falling due for the Services rendered by the Property Manager.

10. INTELLECTUAL PROPERTY OWNERSHIP

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11. CONFIDENTIALITY

11.1. The Parties acknowledge that, by virtue of this Agreement, the Property Manager may have access to non-public confidential information regarding the affairs of the Property Owner. The Property Manager agrees to maintain the confidential nature of such information and not to disclose the same except as permitted herein.

11.2. Confidential information includes all information or materials of whatever nature relating to the purpose disclosed by either Party, whether in writing, orally or otherwise, including documents, techniques, practices, tools, specifications, inventions, patents, trademarks, software, drawings and programmes, but shall not include information which:

(I) can be established by written records to be already known to the Property Manager or the public at the time of disclosure;

(II) enters the public domain through no fault of the Property Manager;

(III) is given by the Property Owner to third parties without any restriction;

(IV) is given to the Property Manager by any third party lawfully in possession of such information and having the legal right to disclose it; or

(V) is required by law, regulation or order of a court of competent jurisdiction to be disclosed.

11.3. Where any personal data is processed in connection with this Agreement, the Parties shall comply with the Nigeria Data Protection Act 2023 and shall implement appropriate technical and organisational measures to protect such data.

11.4. The obligations under this clause shall survive the termination or expiration of this Agreement.

12. FORCE MAJEURE

12.1. Neither Party shall be liable for any failure to fulfil any term of this Agreement where such fulfilment has been delayed, hindered, interfered with or prevented by force majeure, which in this Agreement shall mean any circumstance:

(I) which is beyond a Party's control;

(II) which such Party could not reasonably have avoided or overcome; and

(III) which is not attributable to the other Party.

12.2. Without prejudice to the generality of the foregoing, force majeure shall include the following events and circumstances:

(I) war, hostilities or invasion;

(II) rebellion, terrorism, revolution, insurrection, military or usurped power;

(III) riot, civil disorder, epidemic, pandemic, natural disaster or other acts which may reasonably affect a Party's ability to fulfil its obligations under this Agreement.

12.3. The affected Party shall notify the other Party promptly of the occurrence of any force majeure event. Where such event continues for a period exceeding ________ days, either Party may terminate this Agreement by written notice.

13. DISPUTE RESOLUTION

13.1. The Parties shall use their best endeavours to amicably settle, through negotiation, any dispute arising from or in connection with this Agreement.

13.2. Where the Parties cannot resolve the dispute within thirty (30) days, the matter shall be referred to mediation.

13.3. Where the dispute remains unresolved after mediation, it shall be finally settled by arbitration in accordance with the Arbitration and Mediation Act 2023. The seat of arbitration shall be ________, the arbitration shall be conducted by a sole arbitrator appointed by agreement of the Parties, and the language of arbitration shall be English. The award shall be final and binding on the Parties.

13.4. This Agreement shall be governed by, and construed in accordance with, the laws of the Federal Republic of Nigeria.

14. MODIFICATION AND VARIATION

The Parties may modify any part of this Agreement only with the express written consent of both Parties. If any part of any modified version of this Agreement becomes invalid or unenforceable, the remaining parts shall continue to be valid and enforceable.

15. MISCELLANEOUS

15.1. Variation: This Agreement may be amended or varied only by an instrument in writing signed by both Parties. No delay or omission to exercise any right under this Agreement shall be construed as a waiver.

15.2. Notices: All notices under this Agreement shall be in writing and shall be delivered personally, sent by registered or courier post, or by electronic mail to the address or email of the receiving Party. The address for service of the Property Owner is ________ and that of the Property Manager is ________.

15.3. Headings: Headings in this Agreement are used for convenience only and shall not be construed to limit or affect the terms of this Agreement.

15.4. Counterparts: This Agreement may be executed in counterparts, all of which together shall constitute one and the same Agreement.

15.5. Entire Agreement: This Agreement, together with any addendum hereto, constitutes the entire agreement between the Parties and supersedes any prior written or oral agreement between them.

15.6. Assignment: No Party shall assign any of its obligations or duties under this Agreement without the prior written consent of the other Party.

15.7. Enurement: This Agreement shall enure for the benefit of and be binding on the Parties and their respective heirs, executors, administrators, personal representatives and permitted successors and assigns.

15.8. Cumulative Rights: The rights of the Parties under this Agreement are cumulative and shall not be construed as exclusive, except as otherwise provided by law.

15.9. Waivers: Any term or provision of this Agreement may be waived in writing at any time by the Party entitled to its benefit. No delay or omission to exercise any right shall be construed as a waiver.

15.10. Severability: If any part of this Agreement is held to be unenforceable, the remainder of this Agreement shall continue in full force and effect.

15.11. Further Assurance: The Parties shall execute and deliver all such documents and take all such actions as may be necessary or incidental to give effect to the provisions of this Agreement.

IN WITNESS WHEREOF the Parties have duly executed this Agreement the day and year first above written.

SIGNED, SEALED AND DELIVERED by the within named Property Owner ________

________________________

in the presence of:

Name: ________

Address: ________

Occupation: ________

Signature: ..........................................................................................................

SIGNED, SEALED AND DELIVERED by the within named Property Manager ________

________________________

in the presence of:

Name: ________

Address: ________

Occupation: ________

Signature: ..........................................................................................................