Real Estate Asset Management Fee Agreement for the United Kingdom

Real Estate Asset Management Fee Agreement Template for England and Wales

A comprehensive legal agreement governed by the laws of England and Wales that establishes the terms and conditions under which an asset manager provides professional real estate management services. The agreement details fee structures, service scope, performance metrics, reporting requirements, and responsibilities of both parties. It includes provisions for regulatory compliance, risk management, and operational procedures specific to the UK real estate sector.

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What is a Real Estate Asset Management Fee Agreement?

The Real Estate Asset Management Fee Agreement is essential for establishing professional relationships between property owners and asset managers in England and Wales. It is typically used when property owners or investment funds require professional management of their real estate portfolios. The agreement covers critical aspects including management fees, performance metrics, service levels, and regulatory compliance requirements. It provides legal protection for both parties while ensuring clarity in service delivery and compensation structures within the UK regulatory framework.

What sections should be included in a Real Estate Asset Management Fee Agreement?

1. Parties: Identification and details of the asset manager and client

2. Background: Context of the agreement and brief description of the services

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of asset management services to be provided

5. Fee Structure: Management fees, performance fees, and payment terms

6. Term and Termination: Duration of agreement and termination provisions

7. Obligations of the Manager: Duties and responsibilities of the asset manager

8. Client Obligations: Responsibilities and commitments of the client

9. Liability and Indemnification: Limitation of liability and indemnification provisions

What sections are optional to include in a Real Estate Asset Management Fee Agreement?

1. Performance Metrics: Specific KPIs and performance measurement criteria - include when performance-based fees are part of the agreement

2. Regulatory Compliance: Specific regulatory obligations and compliance requirements - include when managing regulated funds or providing regulated services

3. Environmental Provisions: Environmental management and sustainability requirements - include when managing properties with specific environmental commitments

What schedules should be included in a Real Estate Asset Management Fee Agreement?

1. Schedule 1 - Property Portfolio: List and details of properties under management

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees and charges

3. Schedule 3 - Service Level Agreement: Detailed service standards and performance metrics

4. Appendix A - Reporting Requirements: Format and frequency of required reports

5. Appendix B - Key Personnel: Details of key team members and their responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Financial Services and Markets Act 2000: Primary legislation governing financial services regulation in the UK, including asset management activities and financial promotions

Financial Services Act 2012: Updates to financial services regulation including amendments to FSMA 2000 and establishment of FCA regulatory framework

Property Law Act 1925: Fundamental property law legislation governing real estate transactions and ownership in England and Wales

Landlord and Tenant Act 1954: Key legislation governing the relationship between landlords and tenants in commercial property contexts

Law of Property (Miscellaneous Provisions) Act 1994: Additional property law provisions affecting real estate transactions and management

FCA Regulations: Regulatory requirements set by the Financial Conduct Authority for asset managers providing regulated services

AIFMD: Alternative Investment Fund Managers Directive requirements for alternative investment fund managers

RICS Professional Standards: Professional standards and guidance set by the Royal Institution of Chartered Surveyors for real estate professionals

Consumer Rights Act 2015: Legislation governing consumer rights and business obligations in service provision

Unfair Terms in Consumer Contracts Regulations 1999: Regulations protecting consumers from unfair terms in contracts and agreements

Money Laundering Regulations 2017: Regulations concerning anti-money laundering and counter-terrorist financing requirements for property transactions

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime, including property-related transactions

UK GDPR: Data protection regulation governing the processing of personal data in the UK post-Brexit

Data Protection Act 2018: UK's implementation of data protection requirements, working alongside UK GDPR

Supply of Goods and Services Act 1982: Legislation governing contracts for the supply of services, including professional services

Value Added Tax Act 1994: Tax legislation relevant to fee structures and charging VAT on asset management services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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