PM Agreement - PM not liable for....

[Nir]

Hi,

I am considering hiring a property manager. However the agreement he is using mentions the following:

"PM will not be liable or accountable in any manner whatsoever for any acts or omissions"

also, mentioned in another section of his suggested agreement:

"the owner agrees to indemnify the PM and save you (the PM) harmless from any loss or damage to the property or its contents occurring during the term of this agreement caused by you (PM) or anyone else by any means including theft, fire, or vandalism otherwise than by your (PM) gross negligence of willful act or neglect".

Is the above reasonable? would you sign assuming everything else looks good - their reputation, experience etc. ?

THANKS.

 

[housingrental]

Hi Neil

This is harsh language
Though I use similar (almost identical) clauses and have turned down owners wanting to use me that wanted it remove.
There are risks with everything in life. If your gut says no, you have your answer.

 

[brentdavies]

Most contracts have this type of wording, to hold harmless, etc.

If you have issues, how you do resolve the issues or get out of the contract. Many old style mgt agreements were for a initial 2 year term, with renewal options. Especially condominium mgt contracts were all term contracts. Many multi family mgt contract are long term agreements.

If the PM gets charged by Authorities on your property, ( such as window egress), should the PM be liable for your misconduct? (not correcting the windows) It is a 2 way street.

 

[Nir]

Thank You Adam and Brent!

 

[Nicola]

QUOTE (investmart @ May 19 2010, 10:48 AM) Hi,

I am considering hiring a property manager. However the agreement he is using mentions the following:

"PM will not be liable or accountable in any manner whatsoever for any acts or omissions"

also, mentioned in another section of his suggested agreement:

"the owner agrees to indemnify the PM and save you (the PM) harmless from any loss or damage to the property or its contents occurring during the term of this agreement caused by you (PM) or anyone else by any means including theft, fire, or vandalism otherwise than by your (PM) gross negligence of willful act or neglect".

Is the above reasonable? would you sign assuming everything else looks good - their reputation, experience etc. ?

THANKS.

Hi,
I think the second clause is fairly standard - though it looks like there is a typo towards the end - shouldn`t it be "gross negligence or willful act or neglect"?

To me the first one - if that is the complete sentence - is biased too much in favour of the PM. They should take some responsibility for their acts or omissions - otherwise you have no recourse at all if they mess up. Also, I wouldn`t trust someone who wants to contract out of all responsibility before the relationship even starts. I think this should also say something like "except in the case of gross negligence or willful act or neglect by the PM or its employees".

Nicola

 

[Pheenix]

QUOTE (investmart @ May 18 2010, 09:48 PM) Hi,

I am considering hiring a property manager. However the agreement he is using mentions the following:

"PM will not be liable or accountable in any manner whatsoever for any acts or omissions"

also, mentioned in another section of his suggested agreement:

"the owner agrees to indemnify the PM and save you (the PM) harmless from any loss or damage to the property or its contents occurring during the term of this agreement caused by you (PM) or anyone else by any means including theft, fire, or vandalism otherwise than by your (PM) gross negligence of willful act or neglect".

Is the above reasonable? would you sign assuming everything else looks good - their reputation, experience etc. ?

THANKS.

Hi
I`m not a lawyer.

However, the quotes are incomplete so it may be easy to misunderstand the intent. Make sure it is clear what they are saying.

The first appears to be referring to the PM not accepting responsibilities for the acts of others, including you, while the second reinforces this. If this is not the way they read or it is confusing, take the whole document to someone more famaliar with this type of language and/or your lawyer.

Good luck.