Commercial Property Management Agreement for Malta

Commercial Property Management Agreement Template for Malta

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Commercial Property Management Agreement

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What is a Commercial Property Management Agreement?

The Commercial Property Management Agreement is essential for property owners seeking professional management services for their commercial real estate assets in Malta. This document is typically used when property owners want to delegate the day-to-day management and operation of their commercial properties to professional managers while maintaining ownership and strategic control. The agreement, governed by Maltese law, encompasses crucial elements such as service scope, fee structures, reporting requirements, and compliance with local regulations. It's particularly relevant in situations involving complex commercial properties, multiple tenants, or when owners lack the expertise or resources to manage properties directly. The document ensures clear delineation of responsibilities while protecting both parties' interests under Malta's legal framework, which incorporates both civil law traditions and modern commercial practice.

What sections should be included in a Commercial Property Management Agreement?

1. Parties: Identification of the Property Owner and the Property Manager, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including brief description of the property and the owner's desire to engage the manager's services

3. Definitions: Defined terms used throughout the agreement, including Property, Services, Commencement Date, Fees, etc.

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

5. Manager's Services and Obligations: Comprehensive list of services to be provided by the property manager, including maintenance, tenant relations, financial management, etc.

6. Owner's Obligations: Property owner's responsibilities, including providing necessary information, funds for maintenance, and cooperation

7. Fees and Payment Terms: Detailed breakdown of management fees, payment schedule, and reimbursement of expenses

8. Property Management Account: Requirements for maintaining separate accounts for property funds and reporting obligations

9. Reporting and Administrative Requirements: Regular reporting obligations, record-keeping requirements, and administrative procedures

10. Insurance Requirements: Insurance obligations for both parties, including professional indemnity and property insurance

11. Liability and Indemnification: Allocation of risks and responsibilities between parties, including indemnification provisions

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

13. Confidentiality: Protection of confidential information and trade secrets

14. Governing Law and Jurisdiction: Specification of Maltese law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, assignment, and severability

What sections are optional to include in a Commercial Property Management Agreement?

1. Emergency Services: Additional provisions for 24/7 emergency response services, used when the property requires continuous monitoring

2. Construction Management: Provisions for overseeing renovation or construction projects, included when significant works are anticipated

3. Marketing Services: Terms for marketing vacant spaces, included when the property manager will handle tenant acquisition

4. Environmental Compliance: Specific obligations regarding environmental regulations, included for properties with specific environmental concerns

5. Security Services: Provisions for security management, included for properties requiring dedicated security services

6. Multi-Property Management: Additional terms for managing multiple properties, used when the agreement covers a portfolio of properties

7. Value-Added Services: Terms for additional services such as sustainability management or tenant experience programs

8. Special Designations: Additional requirements for properties with special status (e.g., heritage buildings, green buildings)

What schedules should be included in a Commercial Property Management Agreement?

1. Schedule 1 - Property Details: Detailed description of the property, including address, size, facilities, and current condition

2. Schedule 2 - Scope of Services: Detailed breakdown of all management services to be provided

3. Schedule 3 - Fee Schedule: Comprehensive breakdown of all fees, charges, and commission structures

4. Schedule 4 - Key Performance Indicators: Performance metrics and standards for evaluating the property manager's services

5. Schedule 5 - Reporting Templates: Standard formats for various required reports and documentation

6. Schedule 6 - Emergency Procedures: Detailed procedures for handling various types of emergencies

7. Schedule 7 - Maintenance Schedule: Planned maintenance activities and schedules

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

9. Appendix A - Property Management Team: Key personnel assigned to the property and their responsibilities

10. Appendix B - Operating Procedures Manual: Detailed operational procedures and guidelines

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Industrial

Hospitality

Mixed-Use Development

Logistics

Healthcare Facilities

Shopping Centers

Business Parks

Entertainment Venues

Relevant Teams

Legal

Real Estate

Operations

Facilities Management

Finance

Risk and Compliance

Property Management

Asset Management

Business Development

Administration

Maintenance

Tenant Relations

Relevant Roles

Property Manager

Facility Manager

Real Estate Director

Operations Manager

Asset Manager

Commercial Director

Legal Counsel

Contract Manager

Business Development Manager

Finance Manager

Property Administrator

Maintenance Supervisor

Leasing Manager

Risk Manager

Compliance Officer

Real Estate Portfolio Manager

Industries
Civil Code of Malta (Chapter 16 of the Laws of Malta): Primary legislation governing contracts, property rights, obligations, and lease agreements in Malta. Particularly relevant are provisions relating to mandate and property management.
Trading Licenses Act (Chapter 441 of the Laws of Malta): Regulates business licenses and commercial activities, including those related to property management services.
Real Estate Agents, Property Brokers and Property Consultants Act (Chapter 615): Governs the provision of real estate services and property management, including licensing requirements and professional obligations.
Value Added Tax Act (Chapter 406): Determines VAT obligations and requirements for property management services and related commercial activities.
Occupational Health and Safety Authority Act (Chapter 424): Sets out health and safety requirements for commercial properties and workplace environments.
Environment Protection Act (Chapter 549): Establishes environmental obligations and standards that may affect property management and maintenance.
Equal Opportunities (Persons with Disability) Act (Chapter 413): Ensures accessibility requirements and non-discrimination in commercial properties.
Building Regulation Act (Chapter 513): Governs building standards, maintenance requirements, and safety regulations for commercial properties.
Prevention of Money Laundering Act (Chapter 373): Relevant for financial transactions and due diligence requirements in property 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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