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Publication date: 23.04.2024
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A property management contract is a legal document in which one party (the settlor of management) transfers to another party (the manager) the right to manage certain property for a specified period of time.
The main aspects of this type of contract include:
Transfer of property to management: The founder of management transfers the property to the manager for management within a certain period. This can be a variety of assets, as already mentioned, including businesses, real estate, securities, etc.
Obligations of the manager: The manager undertakes to manage the property in the interests of the founder of the management or the person indicated by him (beneficiary). This means that the manager must conduct business with this property on behalf of the founder and act in his interests.
Management fee: The manager receives a fee for his property management services. Terms regarding the amount and method of payment are usually defined in the contract.
Term of the contract: The property management contract can be concluded for a certain period, after which it can be extended by agreement of the parties or terminated. If the parties did not specify the term of the contract, it is considered concluded for 5 years.
The essential conditions of the property management contract are the definition of the amount and types of property, which is transferred to the managing party for management. This list must be clearly defined and include all details regarding property objects, as well as determine the scope and terms of payment for property management services. In addition to these essential terms, other details may be included, such as the rights and obligations of the parties, the reporting procedure, the responsibilities of the parties, etc. It is important that all essential terms are clearly defined and understood by both parties to the contract in order to avoid misunderstandings and conflicts in the future.
The conclusion of a property management agreement in writing is an important requirement from the point of view of legislation. The written form of the contract allows the parties to clearly record the terms of the agreement and reduces the risk of misunderstandings or disputes in the future. The real estate management contract, in particular objects of unfinished construction or future real estate objects, is subject to notarization. The notarization of the contract is important for ensuring its legal validity and protecting the rights of the parties.
The reasons for termination of the property management contract, which are determined in accordance with the legislation or the terms of the contract, namely:
1. If the property under management is destroyed or lost, this may lead to termination of the contract.
2. If the contract has a fixed term, it is terminated automatically upon the expiration of this term.
3. If the beneficiary is a natural person and he dies, or a legal entity and it is liquidated, this may lead to the termination of the contract.
4. If the beneficiary refuses to receive the benefit, this may be grounds for terminating the contract.
5. If the manager has lost the capacity to take legal action or died, this may also lead to the termination of the contract.
A property management contract may be subject to registration with the State Tax Service at the place of registration of a tax-paying organization or an individual entrepreneur. These contracts must be accounted for and reflected in tax reporting without creating a separate legal entity for this activity.
In order to conduct a legal analysis of the contract, the analysis of the contract, first of all, it is necessary to read all its terms in detail and determine whether they meet the requirements of the law and whether they do not violate the rights of any of the parties. Therefore, it is better to contact qualified lawyers who will analysis of documents of your property management contract. Lawyers with sufficient experience and knowledge will be able to help you understand all legal aspects of the contract, identify possible risks and prepare the necessary measures for their management.
