PROPERTY MANAGEMENT AGREEMENT

(State of Colorado)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

This Property Management Agreement (“Agreement”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

1. [OWNER LEGAL NAME], a [State] [Entity Type] having its principal place of business at [Address] (“Owner”); and
2. [MANAGER LEGAL NAME], a [State] [Entity Type] having its principal place of business at [Address] (“Manager”).

Recitals

A. Owner is the fee simple owner of the real property commonly known as [Property Address / Legal Description] and desires to retain Manager to provide professional property management services for the Property.
B. Manager represents that it is duly licensed (or otherwise exempt) under Colorado law to engage in the business of property management and is willing to perform such services in accordance with the terms and conditions herein.
C. In consideration of the mutual covenants set forth below, the parties agree as follows.

II. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below. Terms defined in the singular include the plural and vice-versa. Cross-references in parentheses indicate principal usage.

“Affiliate” – Any entity controlling, controlled by, or under common control with a party. (Sect. V)
“Applicable Law” – All federal, state, county, municipal, and local statutes, ordinances, rules, regulations, and orders, including without limitation the Colorado Real Estate Commission Rules and Colorado Revised Statutes governing real estate brokerage and trust accounts. (passim)
“Confidential Information” – Non-public information exchanged in connection with this Agreement, whether oral, written, or electronic, and identified as confidential or that reasonably should be understood to be confidential. (Sect. V)
“Gross Receipts” – All rents and other sums collected by Manager on Owner’s behalf with respect to the Property, excluding Security Deposits. (Sect. III)
“Management Fees” – The compensation due Manager under Section III.B. (Sect. III & VII)
“Property” – The real property, improvements, and appurtenances described in the Recitals. (passim)
“Security Deposits” – All monies held to secure performance of tenants’ obligations under any lease for the Property. (Sect. III & VII)
“Trust Account” – A trust or escrow account established and maintained in conformity with Applicable Law for the benefit of Owner and/or tenants. (Sect. III)

[// GUIDANCE: Add additional defined terms unique to your project as needed.]

III. OPERATIVE PROVISIONS

A. Appointment & Scope of Services
1. Owner hereby engages Manager as the exclusive agent to manage, operate, control, rent, and lease the Property in accordance with this Agreement and Applicable Law.
2. Services include, without limitation: (a) advertising and leasing; (b) rent collection; (c) tenant screening and selection consistent with fair housing laws; (d) routine maintenance and emergency repairs within the Expense Authority (defined below); (e) accounting and record-keeping; (f) handling Security Deposits; and (g) other customary tasks reasonably necessary for the efficient management of the Property.
3. Manager shall perform the Services in a commercially reasonable, diligent, and professional manner consistent with industry standards and Colorado Real Estate Commission requirements.

B. Compensation
1. Management Fee. Owner shall pay Manager a monthly management fee equal to [__]% of Gross Receipts (the “Management Fees”).
2. Leasing Fee. Manager shall be entitled to a leasing commission of [__]% of the first full month’s rent for each new tenancy.
3. Expense Reimbursement. Owner shall reimburse Manager for all reasonable, documented out-of-pocket expenses incurred on Owner’s behalf, provided such expenses are within the Expense Authority (see §III.D).
4. Method of Payment. Manager may deduct earned fees and reimbursable costs from Gross Receipts prior to remitting net proceeds to Owner.

C. Trust Accounts; Handling of Funds
1. Establishment. Manager shall maintain one or more FDIC-insured Trust Accounts at a financial institution located in Colorado titled “[MANAGER NAME] Trust Account – [OWNER NAME].”
2. Deposits. All rents, Security Deposits, and other funds received on Owner’s behalf shall be deposited into a Trust Account no later than five (5) business days after receipt or such shorter period as required by Applicable Law.
3. Disbursements. Manager shall remit net monthly proceeds to Owner no later than the [__] day of the following calendar month, together with an itemized statement of income and expense.
4. Records. Manager shall maintain complete and accurate books and records in accordance with Generally Accepted Accounting Principles (“GAAP”) and Colorado Real Estate Commission Rules, available for inspection by Owner upon twenty-four (24) hours’ notice.

D. Expense Authority
1. Routine Expenditures. Manager may expend up to $[AMOUNT] for any single non-emergency item without prior Owner consent.
2. Emergencies. In the event of an emergency affecting life, health, safety, or material preservation of the Property, Manager may expend such amounts as are reasonably necessary, regardless of dollar limit, and shall notify Owner promptly.

E. Term
1. Initial Term. The term of this Agreement shall commence on the Effective Date and continue for [__] months (the “Initial Term”).
2. Renewal. Thereafter, the Agreement shall automatically renew for successive one-year periods unless either party delivers written notice of non-renewal at least thirty (30) days before the expiration of the then-current term.

F. Termination
1. Either party may terminate this Agreement for convenience upon thirty (30) days’ prior written notice.
2. Immediate Termination. Owner may terminate immediately upon (a) Manager’s loss or suspension of required licensure, (b) Manager’s material breach not cured within ten (10) days after notice, or (c) Manager’s gross negligence, willful misconduct, or fraud.
3. Post-Termination Duties. Upon termination, Manager shall (a) deliver to Owner all books, records, keys, leases, and trust funds, (b) provide a final accounting within fifteen (15) days, and (c) cooperate in transition to a successor manager.

IV. REPRESENTATIONS & WARRANTIES

A. Mutual Representations
1. Due Authority. Each party represents it has full power and authority to enter into and perform this Agreement.
2. No Conflict. Execution and performance of this Agreement do not violate any agreement binding on such party.

B. Manager’s Additional Representations
1. Licensure. Manager holds and shall maintain throughout the term an active Colorado real estate broker’s license (or is otherwise exempt) and is in good standing with the Colorado Division of Real Estate.
2. Compliance. Manager is familiar with, and shall comply with, all Applicable Law, including trust account and fair housing requirements.
3. Insurance. Manager maintains and will maintain during the term (a) Commercial General Liability insurance with limits of not less than $[__] and (b) Errors & Omissions insurance with limits of not less than $[__].

C. Survival. The representations and warranties in this Section IV shall survive termination of this Agreement for a period of two (2) years.

V. COVENANTS & RESTRICTIONS

A. Owner’s Covenants
1. Provide requisite funds to Manager to cover Property expenses as and when due.
2. Maintain appropriate property and casualty insurance naming Manager as an additional insured.
3. Disclose to Manager all known adverse conditions and existing obligations affecting the Property.

B. Manager’s Covenants
1. Equal Housing Compliance. Manager shall comply with federal, state, and local fair housing laws.
2. Confidentiality. Manager shall hold Confidential Information in strict confidence and use it solely to perform its obligations.
3. Records Retention. Manager shall retain all transaction records for not less than four (4) years or such longer period as required by Applicable Law.

C. Non-Solicitation of Tenants. Without Owner’s prior written consent, Manager shall not, during the term and for one (1) year thereafter, solicit any tenant of the Property to lease space at any other property managed by Manager or its Affiliates.

VI. DEFAULT & REMEDIES

A. Events of Default
1. Failure of either party to perform any material covenant, agreement, or obligation under this Agreement within ten (10) days (monetary) or thirty (30) days (non-monetary) after written notice.
2. Insolvency, assignment for benefit of creditors, or commencement of bankruptcy proceedings by or against a party.

B. Remedies
1. Upon an Event of Default, the non-defaulting party may (a) terminate this Agreement, (b) pursue all rights and remedies available at law or in equity, and (c) recover all reasonable attorneys’ fees, costs, and expenses incurred in enforcement.
2. Injunctive Relief. Each party acknowledges that monetary damages may be inadequate and agrees that the non-defaulting party shall be entitled to seek injunctive relief without the necessity of posting bond to prevent or curtail any actual or threatened breach.

VII. RISK ALLOCATION

A. Indemnification by Manager
1. Scope. Manager shall indemnify, defend, and hold harmless Owner, its affiliates, and their respective officers, directors, managers, members, shareholders, employees, and agents (collectively, “Indemnitees”) from and against any and all claims, damages, losses, liabilities, judgments, fines, penalties, costs, and expenses (including reasonable attorneys’ fees) (collectively, “Claims”) arising out of or relating to (a) Manager’s breach of this Agreement, (b) gross negligence or willful misconduct, or (c) violation of Applicable Law by Manager or its employees or subcontractors.
2. Procedure. Owner shall promptly notify Manager of any Claim, and Manager shall control the defense. Owner may participate through separate counsel at its own expense.

B. Limitation of Liability
EXCEPT FOR (i) GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, (ii) FRAUD, AND (iii) MANAGER’S INDEMNIFICATION OBLIGATIONS UNDER SECTION VII.A, MANAGER’S AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL MANAGEMENT FEES PAID OR PAYABLE TO MANAGER DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

C. Insurance Requirements
Each party shall maintain insurance as set forth in Section IV or as otherwise reasonably required, and shall provide certificates evidencing such coverage upon request.

D. Force Majeure
Neither party shall be liable for failure to perform caused by events beyond its reasonable control, including acts of God, war, terrorism, epidemic, labor stoppage, or governmental action; provided the affected party gives prompt notice and resumes performance as soon as practicable.

VIII. DISPUTE RESOLUTION

A. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflict-of-law principles.

B. Forum Selection
The parties submit to the exclusive jurisdiction of the state courts located in [County], Colorado for any action arising out of or relating to this Agreement.

C. Optional Arbitration
[OPTIONAL — delete if not elected] Any dispute not resolved within thirty (30) days after written notice may, at either party’s election, be submitted to binding arbitration administered by the American Arbitration Association in [City, Colorado] under its Commercial Arbitration Rules. Judgment on the award may be entered in any court of competent jurisdiction.

D. Jury Waiver
[OPTIONAL — delete if not elected] EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT.

E. Injunctive Relief Preservation
Notwithstanding any election to arbitrate, either party may seek preliminary or permanent injunctive relief in a court of competent jurisdiction to protect its interests pending final resolution of the dispute.

IX. GENERAL PROVISIONS

A. Amendments & Waivers
No amendment or waiver of any provision shall be effective unless in writing signed by both parties. A waiver on one occasion shall not constitute a waiver on any subsequent occasion.

B. Assignment
Manager may not assign or delegate its rights or duties without Owner’s prior written consent. Owner may freely assign this Agreement in connection with a sale or transfer of the Property.

C. Successors & Assigns
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

D. Severability
If any provision is held invalid or unenforceable, such provision shall be reformed to the minimum extent necessary to make it valid and enforceable, and the remaining provisions shall remain in full force and effect.

E. Entire Agreement
This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements and understandings.

F. Counterparts & Electronic Signatures
This Agreement may be executed in counterparts (including electronic counterparts), each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures transmitted electronically shall be considered binding.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Property Management Agreement as of the Effective Date.

[// GUIDANCE: Consider notarization if the Property is subject to recording requirements for certain powers granted, or if otherwise advisable under Colorado law.]

EXHIBIT A – SCHEDULE OF FEES & CHARGES
[Detail all fees, late charges, mark-ups on maintenance, etc.]

EXHIBIT B – DISCLOSURES
1. Lead-Based Paint Disclosure (for pre-1978 residential property)
2. Any known environmental hazards disclosures
3. Other Colorado-specific mandatory disclosures

[// GUIDANCE: Attach additional exhibits (e.g., sample lease, management reporting format) to suit the client’s needs.]