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We acted for a Property Management Company which is a subsidiary of a wider Group incorporating Property Investment, Development and Asset Management divisions. The challenge was to create a bespoke Property Management Agreement which incorporated additional Development and Asset Management services if the wider Group were to be appointed but which could be tailored and limited to Property Management services only in the event of an individual external appointment.
The challenges to be addressed included:
1. Creating a manager friendly template which would be acceptable to institutional investors.
2. Limiting liability to a level consistent with but limited to the clients Professional Indemnity insurance cover.
3. Clearly identifying all the variable provisions which could be included or excluded dependent upon the brief, and which would avoid the client having to instruct lawyers to create a new agreement for each instruction.
4. Preparing a draft which was recognizable and familiar to landlords and investors but provide sufficient protection to our clients.
1. Creating a manager friendly template which would be acceptable to institutional investors.
Review the client’s current Property Management, Property Development and Property Asset Management Agreements which all staff were familiar with against standard institutional documents and update to achieve consistency.
2. Limiting liability to a level consistent with but limited to the clients Professional Indemnity insurance cover.
Draft provisions to limit the client’s liability to a level consistent with their existing Professional Indemnity cover but ensure that such limitation of liability was commercially acceptable within the marketplace, and which were also acceptable to Financiers.
3. Clearly identifying all the variable provisions which could be included or excluded dependent upon the brief, and which would avoid the client having to instruct lawyers to create a new agreement for each instruction.
Carefully draft the Management Agreement with interchangeable provisions to be utilised in the event additional Development and/or Asset Management services where to be provided by incorporating standard generic obligations within the conditions of the Agreement with specific Property Management, Property Development and Asset Management obligations which could be included or excluded without affecting the remainder of the Agreement.
4. Preparing a draft which was recognizable and familiar to landlords and investors but provide sufficient protection to our clients.
Utilise standard form and generally accepted industry and institutional wording which would be familiar to and accepted both by institutional landlords and their financiers, but which would also minimise our client’s potential exposure and risk.
By the creation of a professional and interchangeable format our clients where able to respond quickly to expressions of interest with a standard form agreement which was acceptable to the market and which enabled our clients to obtain several prestigious and high value appointments enhancing the value of their offering and reputation within the market place.
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Partner - Corporate and commercial law
John qualified as a Solicitor in 1986 and has 35 years’ experience of commercial law. Upon qualification John worked in the Commercial Department at the head office of a major Birmingham firm subsequently returning to the Northwest to work for a leadin...
