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OTERO REALTY GROUP & PROPERTY MANAGEMENT
 File Number #

PROPERTY MANAGEMENT AGREEMENT

DATE:
COMMENTS:

PARTIES
1. Otero Realty Group & Property Management (hereinafter referred to as "Agent")
2.
  (hereinafter referred to as "Owner")
Telephone Numbers: (Home) ( )
  (Cell) ( )
  (Fax) ( )
Email Address:

COVENANTS
 
1. EXCLUSIVE AGENCY:
 
The owner hereby employs and appoints agent, and hereby accepts such employment and appointment on the terms and conditions hereinafter provided, as exclusive managing agent of the certain residence, hereinafter referred to as "Residence," located at:
 
Address:
City: State: Zip:
 
Estimated Rental Rate: $
 
2. TERMS:
 
a. The terms of this agreement shall commence on the day of , 20 , and terminate on the day of , 20 , subject to all the provisions set forth below:
 
This agreement will automatically renew annually without formal notification to the owner, for 12 months.
 
b. Accounting: Management shall receive all rent and hold all security deposits. Management shall furnish monthly statements of receipts, expenses and charges, and remit to owner all such receipts less actual disbursements there from. In the event the disbursements and charges shall be in excess of the receipts, the owner agrees to pay such excess promptly upon request. Agent agrees to mail all such statements to:
 
Address:
City:State: Zip:
 
Otero Realty Group & Property Management also offers direct deposit. Upon owner request that his/her rent be directly deposited into a local financial institution of their choice, rent shall be directly deposited into:
 
Financial Institutions Name:
Account Number:
 
(If no information provided above for direct deposit, Otero Realty Group & Property Management will automatically mail a check to the above address along with such statements.)
 
3. AGENTS AUTHORITY:
 
Owners authorize agent to act for and on behalf of owner either in the name of agent or owner in connection with the following:
 
  1. Rents: To rent, maintain and manage the residence and to collect rents due or to become due and give receipts therefore.
  1. Contracts: To terminate tenancies; and in that regard to sign and deliver appropriate notices.
  1. Repairs: To make or cause to be made and supervise all necessary repairs, alterations, maintenance, replacements, and improvements to the residence or property, and to purchase supplies and equipment and pay all expenses incurred in connection therewith. Agent agrees to secure the prior approval of the owner on all expenditures in excess of a maximum cost of $350.00 or any one item, except monthly or recurring operating charges and/or emergency repairs in excess of such maximum, if in the opinion of the agent such repairs are necessary to protect the residence or property from damage, to maintain services to the tenants as called for by existing leases, or repair air conditioners, heaters, or other major appliances or pool equipment.
  1. Employment: To hire, contract for, supervise and terminate all employees required for the management, cleaning and maintenance of the residence, all costs therefore to be charged to and paid by owner. Agent may perform any of its duties through its attorney's, agents or employees and shall not be responsible for the acts, defaults, or negligence of such attorneys, agents or employees if reasonable care has been exercised in their appointment and retention.
  1. Utilities: To enter into contracts for electricity, gas, water, fuel, vermin extermination, window cleaning, waste or rubbish removal, rental of furniture or equipment, and such other services as agent may deem necessary.
  1. Advertising: To place advertising for rental of the residence, to display signs upon the premises, to cause references of prospective tenants to be investigated and to enter into leases for terms not in excess of one year and to renew and/or exercise any right of cancellation of the same.
  1. Payments: To make all mortgage payments and to pay insurance premiums, taxes, impounds, assessments or other charges, levied against the residence as they become due: HOWEVER, IT SHALL NOT BE AGENTS RESPONSIBILITY TO DO SO. A SEPARATE AGREEMENT SHALL BE EXECUTED IF AGENT PAYS ANY OF THE ABOVE ITEMS.
  1. Costs: In the event of the inability or refusal of owner to pay all costs incurred and expended by agent in connection with any of the foregoing, agent is authorized to make such payments on owner's behalf from any and all funds of owner held by agent and shall periodically render a complete accounting thereof. In the event that agent pays any such costs from agent's own funds on behalf of owner, and owner thereafter fails or refuses to reimburse agent within fourteen (14) days after written request thereof, then agent shall be entitled to interest upon all such advances at the highest rate from date of such payment. In addition, the agent is authorized to repay itself from any funds agent holds for owner or collects on behalf of owner.
  1. Should the property enter into a foreclosure process this agreement will immediately become voidable by management company. Management shall have the right to void any lease and move the occupying tenant to another property.
 
4. AGENT'S AGREEMENT:
 
Agent agrees to the following:
 
  1. Communication; To reasonably confer with owner in the performance of its duties as set forth herein.
  1. Management: To use diligence in the management of the residence for the term of this agreement and upon the terms and conditions herein provided, and agrees to furnish the services of its organization for the renting, leasing and managing of the same.
  1. Trust Account: To establish and maintain in a bank, deposits which are insured by the Federal Deposits Insurance Corporation and in a manner to indicate the custodial for owner, with authority to draw thereon for any payments to be made by the agent in discharging its duties, liabilities or obligations arising under the provisions of this agreement and for the payment of the agent's fee, all of which shall be subject to the limitations of this agreement. Said account may be an interest bearing account and owner agrees that agent may retain any interest earned as additional compensation for duties performed. In addition, agent may establish an interest bearing trust account for receipt of tenant's security deposits, and agent may retain all interest earned with permission of tenants.
  1. Statutory Compliance: The agent shall not be responsible for maintaining the residence or any equipment therein in compliance with the requirements of any statute, ordinance, law or regulation of any governmental body or of any public authority or official thereof having jurisdiction, except to notify the owner promptly or forward to the owner promptly any complaints, warnings, notices or summons received by it relating to such matters. The owner authorizes the agent to disclose the ownership of the residence to any such officials and agrees to indemnify and hold harmless the agent, its representatives, servants, and employees, from any and all loss, cost, expense and liability whatsoever which may be an alleged violation of such laws, ordinances, statutes or regulations. Agent assumes no responsibility or management of personal property left by owner at premises.
 
5. OWNERS RESPONSIBILTY:
 
All acts and actions performed by the agent under the provisions of this agreement shall be done as an agent for the owner, and all such actions including any obligation or expense incurred in connection therewith shall be for the account, on behalf, and the sole responsibility of owner, any payments to be made by the agent hereunder shall be made from any monies deposited to owner's special account or as may be otherwise provided. Agent shall not be obligated to make any advance to or for the account of the owner or to pay any sums, except out of funds held or provided as aforesaid, nor shall the agent be obliged to incur any liability or obligations for the account of the owner without assurance that funds necessary for the discharge thereof will be provided. In the event the agent does advance funds for the account of the owner to cover any expense or obligation for the owner, the owner agrees to reimburse agent for said expenses within thirty (30) days of written notification by agent. If funds necessary to defray the costs incurred by agent in the performance of the provisions hereof and are not available to agent in owner's special account and are not otherwise provided by owner within thirty (30) days of written notification thereof by agent, then agent may terminate this agreement forthwith and shall thereafter have no further duty or responsibility hereunder. Also, the agent is authorized to repay itself from any fund's agent holds for owner or funds collected on behalf of the owner.
 
6. ASSIGNMENT OF RENTS:
 
Owner hereby assigns to agent all rents collected for the use of the residence during the term hereof, and all other receipts collected by the agent on behalf of owner during the terms hereof for the purpose of paying all expenses incurred by agent in managing and maintaining the residence and other expenses authorized under the terms of this agreement, together with agreements fees accruing for the services rendered or provided herein.
 
7. OWNERS AGREEMENT:
 
The owner further agrees:
 
  1. Payment of Costs: To make all mortgage payments accruing against the residence when due and to pay all expenses incurred by the agent, including but not limited to attorney's fees for counsel or suit involving any alleged violation by the agent or by the owner, or both, of any constitutional provision, statute, ordinance, law or regulation of any governmental body pertaining to fair employment, Federal Fair Credit Reporting Act, environmental protection, or fair housing (unless the agent is formally adjudicated to have personally and not in a representative capacity violated such constitutional provision, statute, ordinance law or regulation). Nothing herein contained, however, shall require the agent to employ such counsel in any such proceeding or suit.
  1. Indemnification: To indemnify, defend and hold the agent harmless from all claims, liability or losses arising out of or resulting from agent's performance of the duties and responsibilities as provided herein, and from liability for damage to property and injuries to or death of any employees or other person whomsoever occurring in, on or about the premises of the residence and in that regard to carry at owners expense public liability, fire, theft and casualty insurance naming the owner and the agent as insured there under and providing limits which will be adequate to protect their interest and inform agent as to the existence of such insurance. Unless the owner shall provide such insurance and furnish such certificate within thirty (30) days from the date of this agreement, agent may, but shall not be obligated to contract for and place such insurance and charge the cost thereof to the account of the owner.
  1. Sales Agency: During the terms and for a period of one year after termination of this agreement, should any property which is the subject of this agreement be sold to any tenant secured by Otero Realty Group & Property Management, owner agrees to pay Otero Realty Group & Property Management a commission equal to six (6%) percent of the sale price.
 
8. AGENCY FEE:
 
  1. For leasing 50% (1/2) of first months rent, payable upon execution of lease agreement. This fee may only be charged twice in any calendar year.
  1. For Management 10 (Ten) percent of the gross monthly rents received, payable monthly.
  1. Miscellaneous: In order to minimize the fee the agent charges the owner, the agent may collect and retain for themselves from the tenants all or any of the following:

    A fee for serving notices, a check collection charge, credit report fees, non-refundable security, late fees and administrative management charge and/or broker's commission.

    There may be additional charges to the owner for specific services too numerous to detail.
 
9. CANCELLATION:
 
In the event the owner or the agent terminates this agreement prior to its expiration date, a $500.00 fee on every property covered by this agreement shall immediately become due and payable as a cancellation and leasing commission due Otero Realty Group & Property Management. Also, in the event this agreement is terminated prior to its expiration date, Otero Realty Group & Property Management may at its option return any refundable security deposits it holds to the TENANTS who paid the security deposits, and shall be released of any and/or all responsibility thereof. Should the owner choose to list the property for sale with Otero Realty Group & Property Management or to move into said property, the cancellation fee shall be waived.
 
The failure of the owner to pay the mortgage is a material breach non-curable of this agreement and it is at the agent's option to exercise the following remedies based upon the best interests of the agent and/or the tenant(s) and not the owner. If the agent receives notice and/or knowledge that the owner has stopped paying the mortgage and/or the property has or will go into default and/or the property has or will go into foreclosure, the owner authorizes the agent (manager) and it is at the agent's option and discretion to notify the tenant(s) of the said non-payment, default and/or foreclosure. In addition, the owner authorizes the agent, at the agent's discretion, to release the tenant from the lease, allow the tenant to relocate to another property, even a property that is managed by the agent and is owned by another client, and return the refundable security deposit to the tenant either upon return of the keys to the property to the agent or upon the transfer of ownership of the property, without off-set for damages caused by the tenant.
The owner will hold harmless and indemnify the agent for any and all actions that may arise from the impending or actual non-payment, default and/or foreclosure by the owner of the property. The agent retains the right to be paid either directly by the owner or from funds held on the owners behalf for the commision that would have been paid for the duration of the lease.
 
A 30 day written notice of Intent to Cancel must be received by Otero Realty Group in the event that the owner chooses to terminate this agreement prior to its expiration date.
 
10. PAYMENT:
 
All funds due owners will be made payable on or before the 20th of each month unless the renters have been late paying rent or checks from renters have not cleared the bank.
 
11. OTHER ITEMS OF AGREEMENT:
 
 
12 . ENTIRE AGREEMENT:
 
This agreement and all attachments hereto shall constitute the entire agreement between the parties, and no variance or modification thereof shall be recognized and effective, unless provided by supplemental agreement in writing and executed in the same manner as this agreement.
 
13. Fair Housing Clause:
 
Owner is acknowledging that they are aware of Federal and Local Fair Housing Laws and understand that agent will act according to their provisions. If owner should at any time request agent to disregard Fair Housing Laws and/or State or Local landlord/tenant laws, this contract will be terminated immediately and the management fees for the balance of this contract or $1000.00 whichever is greater will be due upon termination
 
14. SIGNATURES:
 
For the convenience of the parties, this agreement may be executed in counterparts, which are in all respects identical and each of which shall be deemed complete in itself so that any one may be introduced in evidence or used for any other purpose without the production of the counterparts. This agreement shall be binding upon the successors and assigns of the agent, and the heirs, administrators, executors, successors and assigns of the owner.

IN WITNESS THEREOF, the parties hereto have executed this agreement the day and year first above written.
 
OWNER: X ___
AGENT: X ___
BROKER: X ___