Management Agreement (Real Estate) for India

Management Agreement (Real Estate) Template for India

A comprehensive legal document governed by Indian law that establishes the relationship between a property owner and a professional management company for the operation, maintenance, and administration of real estate assets. The agreement details the scope of management services, financial arrangements, reporting requirements, and compliance obligations under Indian regulatory framework, including RERA 2016 and relevant state laws. It outlines the responsibilities, authority limits, fee structure, and operational procedures while ensuring compliance with local property management regulations and industry standards.

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Management Agreement (Real Estate)

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What is a Management Agreement (Real Estate)?

The Management Agreement (Real Estate) is a crucial document used in the Indian real estate sector when property owners wish to delegate the management and operation of their real estate assets to professional management companies. This agreement is particularly relevant in the context of Indian property law, including compliance with RERA 2016, state-specific real estate regulations, and local municipal laws. It is commonly used for commercial complexes, residential developments, shopping centers, and mixed-use properties where professional management is required. The document typically includes comprehensive provisions for property maintenance, financial management, tenant relations, regulatory compliance, and reporting structures, while clearly defining the scope of authority delegated to the management company.

What sections should be included in a Management Agreement (Real Estate)?

1. Parties: Identification of the property owner(s) and the management company, including their registered addresses and authorized representatives

2. Background: Context of the agreement, including property details and purpose of engaging the management company

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Formal appointment of the manager, duration of the agreement, and renewal terms

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

6. Manager's Rights and Obligations: Comprehensive list of the manager's responsibilities and authority limits

7. Owner's Rights and Obligations: Owner's responsibilities, including funding obligations and cooperation requirements

8. Financial Arrangements: Management fees, operating expenses, budgeting, and accounting procedures

9. Reporting and Records: Requirements for financial reporting, maintenance of records, and audit rights

10. Compliance and Permits: Obligations regarding regulatory compliance and maintenance of necessary permits

11. Insurance: Insurance requirements for both parties

12. Indemnification: Mutual indemnification provisions and liability limitations

13. Termination: Grounds for termination, notice requirements, and post-termination obligations

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and force majeure

What sections are optional to include in a Management Agreement (Real Estate)?

1. Environmental Compliance: Specific environmental obligations and compliance requirements, used for properties with significant environmental impact

2. Staff and Employment: Terms regarding on-site staff employment and management, relevant for larger properties requiring dedicated staff

3. Marketing and Leasing: Provisions for marketing and leasing services, applicable for commercial properties or residential complexes with high turnover

4. Capital Improvements: Procedures for major renovations and improvements, important for older properties or those requiring significant upgrades

5. Emergency Procedures: Specific procedures for handling emergencies, crucial for high-risk or high-value properties

6. Technology and Systems: Requirements for property management software and systems, relevant for modern or smart buildings

7. Sustainability Measures: Green building and sustainability requirements, important for LEED-certified or environmentally conscious properties

What schedules should be included in a Management Agreement (Real Estate)?

1. Property Details: Detailed description of the property, including location, boundaries, and amenities

2. Scope of Services: Detailed breakdown of management services with specific tasks and frequencies

3. Fee Structure: Detailed breakdown of management fees, additional charges, and payment terms

4. Key Performance Indicators: Metrics for evaluating management performance

5. Operating Budget: Annual operating budget and financial projections

6. Maintenance Schedule: Planned maintenance activities and schedules

7. Emergency Contacts: List of emergency contacts and escalation procedures

8. Required Insurance: Detailed insurance requirements including types and coverage amounts

9. Applicable Permits: List of required permits and licenses with renewal dates

10. Staff Requirements: Staffing plan including roles, responsibilities, and qualifications

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

India

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Facility Management

Commercial Real Estate

Residential Real Estate

Retail Real Estate

Industrial Real Estate

Hospitality

Mixed-use Development

Asset Management

Relevant Teams

Legal

Operations

Facility Management

Property Management

Asset Management

Finance

Compliance

Real Estate

Administration

Maintenance

Leasing

Relevant Roles

Property Manager

Facility Manager

Real Estate Manager

Asset Manager

Operations Manager

Legal Counsel

Compliance Officer

Financial Controller

Real Estate Director

Portfolio Manager

Property Owner

Building Manager

Maintenance Manager

Leasing Manager

Real Estate Administrator

Industries
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India. Essential for structuring the management agreement's basic elements including offer, acceptance, consideration, and terms.
Real Estate (Regulation and Development) Act, 2016 (RERA): Regulates real estate sector, including management of properties. Provides framework for responsibilities of various stakeholders in real estate projects.
Registration Act, 1908: Governs the registration of documents relating to transfer of property and other real estate matters. Important for determining if the management agreement needs mandatory registration.
Indian Stamp Act, 1899: Determines the stamp duty payable on various types of agreements, including property management agreements.
Transfer of Property Act, 1882: Contains provisions relating to leasing, managing, and transferring property rights. Relevant for understanding the scope of management rights and obligations.
Societies Registration Act, 1860: Relevant if the property is part of a housing society, as it governs the management of cooperative housing societies.
State-specific Apartment Ownership Acts: Various states have their own laws governing apartment ownership and management, which need to be considered based on the property location.
Environmental Protection Act, 1986: Relevant for ensuring compliance with environmental regulations in property management.
Municipal Corporation Acts: Local laws governing property management, maintenance, and compliance with local authority regulations.
Goods and Services Tax (GST) Laws: Applicable to service fees and other charges in property management agreements.
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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