The Property Management Agreement is essential for property owners in Saudi Arabia who wish to delegate the management of their real estate assets to professional property managers. This document is particularly relevant in the context of Saudi Arabia's growing real estate sector and the increasing sophistication of property management services in the region. It establishes the legal framework for the relationship between property owners and management companies, ensuring compliance with Saudi Arabian real estate regulations, commercial laws, and Shariah principles. The agreement typically includes detailed provisions for property maintenance, tenant relations, financial management, and reporting requirements, while also addressing specific local requirements such as municipal regulations and civil defense requirements. This type of agreement is commonly used for commercial, residential, and mixed-use properties, providing clear guidelines for professional property management while protecting the interests of all parties involved.

1. Parties: Identification of the property owner and the property management company, including full legal names and contact details

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

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

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

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

6. Manager's Duties and Responsibilities: Comprehensive list of obligations including maintenance, tenant management, and reporting

7. Owner's Obligations: Property owner's responsibilities including funding, insurance, and cooperation requirements

8. Financial Management: Handling of rent collection, operating expenses, and accounting procedures

9. Fees and Compensation: Management fees, payment terms, and reimbursement of expenses

10. Reporting and Communications: Required reports, frequency of updates, and communication protocols

11. Insurance and Liability: Insurance requirements and allocation of liability between parties

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

13. Governing Law and Dispute Resolution: Application of Saudi law and methods for resolving disputes

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