Property Management Service Agreement – Mixed-Use Property
This Property Management Service Agreement – Mixed-Use Property should be used by a property management company appointed to manage a mixed-use development on behalf of the owner. An example would be a row of shops with flats above.
This service agreement (also known as a service contract) provides for the commercial units within the property (such as shop units or offices) to be let on leases or licences to occupy and for the residential units to be let on assured shorthold tenancies.
The whole property, comprising both commercial and residential areas, is to be managed by the management company for the term of the agreement. The agreement sets out in detail the rights and obligations of each party. It includes clauses dealing with key issues such as insurance, liability and indemnity, financial record keeping, confidentiality and non-solicitation.
The scope of the management company’s role is set out in Schedule 1. An example scope of work is included in the template but this should be reviewed carefully and amended as appropriate to suit the needs of the management company and to reflect the particular transaction.
Fees and payment are covered in Schedule 2. There can be a monthly fee, ad hoc payments or a combination of the two.
Schedule 3 contains the owner’s obligations. The example wording should be reviewed and amended as necessary.
This Agreement includes provisions relating to the mandatory requirements for property managers to be members of a Client Money Protection Scheme. This statement must be included if the Manager holds client money.
This Property Management Service Agreement – Mixed-Use Property contains the following clauses:
- Definitions and Interpretation
- Provision of the Services
- Client’s Obligations
- Fees, Payment and Records
- Liability, Indemnity and Insurance
- Force Majeure
- Term and Termination
- Effects of Termination
- No Waiver
- Further Assurance
- Assignment and Sub-Contracting
- Relationship of the Parties
- Third Party Rights
- Entire Agreement
- Dispute Resolution
- Law and Jurisdiction
And the following schedules:
- Specification of Services
- Fees and Payment
- Client’s Obligations
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
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