PROPERTY MANAGEMENT AGREEMENT

(Connecticut – Comprehensive Template)

[// GUIDANCE: This template is intentionally thorough. Delete any bracketed optional text or guidance notes before final execution.]

TABLE OF CONTENTS

1. Agreement Header & Recitals
2. Definitions
3. Appointment & Scope of Authority
4. Management Services & Performance Standards
5. Compensation; Expenses; Accounting
6. Trust Account & Handling of Funds (CT‐Specific)
7. Owner Responsibilities
8. Representations & Warranties
9. Covenants & Restrictions
10. Insurance Requirements
11. Indemnification & Limitation of Liability
12. Default & Remedies
13. Term; Termination
14. Dispute Resolution
15. General Provisions
16. Execution Block

1. AGREEMENT HEADER & RECITALS

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

• [OWNER LEGAL NAME], a [STATE] [ENTITY TYPE], with its principal address at [ADDRESS] (“Owner”); and
• [MANAGER LEGAL NAME], a Connecticut‐licensed real estate broker, License No. [LICENSE NUMBER], with its principal address at [ADDRESS] (“Manager”).

Recitals

A. Owner is the fee simple owner of the real property and all improvements located at [PROPERTY ADDRESS / LEGAL DESCRIPTION] (the “Property”).
B. Manager is duly licensed and qualified under Connecticut law to provide property management services and desires to manage the Property on Owner’s behalf.
C. Owner desires to engage Manager, and Manager accepts such engagement, all on the terms stated herein.

NOW, THEREFORE, in consideration of the mutual covenants herein and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

2. DEFINITIONS

For ease of reference, capitalized terms have the meanings set forth below (alphabetically):

“Affiliate” – Any entity that directly or indirectly controls, is controlled by, or is under common control with a party.

“Applicable Law” – All federal, state (Connecticut), and local statutes, regulations, ordinances, codes, orders, and common-law principles governing the Property or this Agreement, including without limitation Connecticut real estate licensing rules, trust account regulations, habitability statutes, fair housing laws, and municipal codes.

“Budget” – The annual operating budget for the Property approved pursuant to Section 4.4.

“Fees” – Collectively, the Management Fee and any Leasing Commission, Renewal Commission, or other compensation payable to Manager under Section 5.

“Gross Receipts” – All rents and other income collected from the Property, excluding security deposits (until forfeited) and insurance proceeds.

“Management Fee” – The monthly fee calculated under Section 5.1.

“Operating Account” – The account described in Section 6.2.

“Operating Expenses” – All costs of operating and maintaining the Property (other than capital expenditures) incurred in accordance with the Budget.

“Security Deposit Account” – The account described in Section 6.3.

“Tenant” – Any person or entity occupying space at the Property under a lease or other right of occupancy.

3. APPOINTMENT & SCOPE OF AUTHORITY

3.1 Appointment. Owner hereby appoints Manager as the exclusive agent to manage, operate, lease, and maintain the Property, and Manager accepts such appointment.

3.2 Relationship of Parties. Manager is an independent contractor and not an employee, partner, or joint venturer of Owner. Nothing herein grants Manager authority to bind Owner beyond the express authority stated.

3.3 General Authority. Subject to the limitations in this Agreement and the Budget, Manager is authorized to:
(a) advertise and market the Property;
(b) negotiate, execute, renew, or terminate residential or commercial leases (as applicable) on Owner’s behalf;
(c) collect rents and other sums;
(d) purchase supplies and services;
(e) hire, supervise, and discharge on-site personnel;
(f) institute, prosecute, and settle eviction or collection actions in Owner’s name; and
(g) take any other action reasonably necessary to fulfill Manager’s duties, provided such action complies with Applicable Law.

3.4 Limitations on Authority. Without Owner’s prior written consent, Manager shall not:
(a) make any single expenditure or series of related expenditures exceeding $[THRESHOLD];
(b) enter any contract with a term exceeding [TERM LIMIT, e.g., one (1) year];
(c) perform capital improvements costing more than the amount budgeted; or
(d) confess judgment or agree to arbitration on Owner’s behalf except as expressly permitted herein.

4. MANAGEMENT SERVICES & PERFORMANCE STANDARDS

4.1 Leasing Services. Manager will use commercially reasonable efforts to maintain occupancy, including marketing vacancies, screening applicants, and executing leases on Owner’s standard form (subject to Applicable Law).

4.2 Maintenance. Manager shall keep the Property in a clean, safe, and habitable condition, performing routine maintenance and emergency repairs.

4.3 Code Compliance. Manager will operate the Property in material compliance with all Applicable Law, including CT habitability standards, fair housing, lead‐based paint, and other disclosure requirements.

4.4 Budgeting.
(a) Preparation. At least thirty (30) days before each fiscal year, Manager will submit a proposed Budget for Owner’s approval.
(b) Variances. Manager may deviate from an approved Budget only for (i) emergency repairs to protect life or property or (ii) other expenditures not exceeding [PERCENTAGE]% of the Budget line item.

4.5 Reporting. Manager shall deliver to Owner:
(a) Monthly financial statements (income statement, balance sheet, rent roll) within fifteen (15) days after month-end;
(b) Annual report within thirty (30) days after fiscal year end; and
(c) Incident reports promptly upon occurrence of any material event.

5. COMPENSATION; EXPENSES; ACCOUNTING

5.1 Management Fee. Owner shall pay Manager a monthly Management Fee equal to [PERCENTAGE]% of Gross Receipts, payable on the 10th day of the following month.

5.2 Leasing & Renewal Commissions. Owner shall pay Manager a Leasing Commission of [__]% of the first month’s rent for new leases and a Renewal Commission of [__]% of one month’s rent for renewals.

5.3 Expense Reimbursement. Owner shall reimburse Manager for reasonable, out-of-pocket costs incurred on Owner’s behalf, provided such costs are itemized and supported by invoices.

5.4 No Mark-Ups. Manager shall not receive rebates, mark-ups, or undisclosed compensation from vendors servicing the Property.

5.5 Audit Rights. Owner may audit Manager’s books relating to the Property on ten (10) business days’ notice, no more than twice per year.

6. TRUST ACCOUNT & HANDLING OF FUNDS (CT-SPECIFIC)

6.1 Fiduciary Duty. Manager acknowledges its fiduciary obligation under Connecticut law to safeguard Owner and Tenant funds.

6.2 Operating Account. Manager shall establish and maintain, in a Connecticut depository institution, a separate “Operating Account” in Owner’s name for day-to-day receipts and disbursements.

6.3 Security Deposit Account. Manager shall deposit all Tenant security deposits into a distinct, interest-bearing “Security Deposit Account” that:
(a) is titled “[OWNER NAME] – [PROPERTY] – Security Deposits Trust”;
(b) complies with Connecticut General Statutes governing security deposits; and
(c) is not commingled with other funds.

6.4 Recordkeeping. Manager shall keep complete and accurate records of all receipts and disbursements, retain such records for at least seven (7) years, and make them available for inspection by Owner or the Connecticut Real Estate Commission on reasonable notice.

6.5 Bonding or Errors & Omissions Insurance. Manager shall maintain a fidelity bond or E&O coverage covering misapplication of funds in an amount not less than $[AMOUNT].

[// GUIDANCE: Modify Sections 6.2–6.5 if Owner, rather than Manager, will hold the accounts.]

7. OWNER RESPONSIBILITIES

7.1 Funding Requirements. Owner shall maintain sufficient funds in the Operating Account to cover projected Operating Expenses and shall promptly fund any deficiencies upon Manager’s written notice.

7.2 Insurance. Owner shall procure and maintain property, liability, and such other insurance as set forth in Section 10.

7.3 Information. Owner shall timely provide any information or documents reasonably requested by Manager to perform its duties.

7.4 Approvals. Owner shall act promptly (and in any event within five (5) business days) on Manager’s requests for approvals under this Agreement.

8. REPRESENTATIONS & WARRANTIES

8.1 Mutual Reps. Each party represents that:
(a) it is duly organized, validly existing, and in good standing;
(b) it has full power and authority to enter into and perform this Agreement; and
(c) execution does not violate any contract, law, or order binding on it.

8.2 Owner Reps. Owner additionally represents that:
(a) Owner holds good title to the Property free of monetary liens other than those disclosed on Schedule 1;
(b) The Property complies with all zoning, building, and environmental laws, except as disclosed on Schedule 2; and
(c) No litigation or governmental proceeding materially affecting the Property is pending or, to Owner’s knowledge, threatened.

8.3 Manager Reps. Manager additionally represents that:
(a) Manager and all persons performing services hereunder hold all licenses required for property management in Connecticut;
(b) Manager is not currently subject to any disciplinary action by the Connecticut Real Estate Commission; and
(c) Manager maintains insurance as required by Section 10.

8.4 Survival. All representations and warranties survive termination for twelve (12) months.

9. COVENANTS & RESTRICTIONS

9.1 Compliance with Law. Manager shall perform all services in material compliance with Applicable Law. Owner shall not direct Manager to violate any Applicable Law.

9.2 Fair Housing. Manager shall advertise and lease the Property in a manner fully compliant with state and federal fair housing laws, without discrimination.

9.3 Environmental Matters. Manager shall promptly notify Owner of any known environmental condition or notice; however, Manager is not an environmental consultant and makes no representation regarding environmental compliance beyond ordinary managerial diligence.

9.4 Notice Obligations. Each party shall promptly notify the other of:
(a) any notice of violation, lawsuit, or administrative action relating to the Property;
(b) any casualty or material damage; or
(c) any incident reasonably expected to result in a claim exceeding $[THRESHOLD].

9.5 Licensing Status. Manager shall immediately notify Owner of any suspension, revocation, or limitation of its real estate broker license.

10. INSURANCE REQUIREMENTS

10.1 Owner Policies. Owner shall maintain:
(a) Property insurance on a replacement cost basis;
(b) Commercial general liability insurance (CGL) with limits of not less than $[AMOUNT] per occurrence/$[AMOUNT] aggregate;
(c) Loss of rents/business interruption coverage for not less than twelve (12) months’ Gross Receipts; and
(d) Workers’ compensation as required by law for Owner’s direct employees (if any).

10.2 Manager Policies. Manager shall maintain:
(a) CGL with limits of $[AMOUNT] per occurrence/$[AMOUNT] aggregate;
(b) Professional liability (E&O) of not less than $[AMOUNT] per claim; and
(c) Fidelity bond covering persons handling funds in Section 6.

10.3 Additional Insured. Owner shall name Manager, and Manager shall name Owner, as additional insureds on their respective CGL policies, with waivers of subrogation where commercially available.

10.4 Certificates. Each party shall deliver certificates of insurance upon request and at each renewal.

11. INDEMNIFICATION & LIMITATION OF LIABILITY

11.1 Indemnification by Manager. Manager shall defend, indemnify, and hold harmless Owner, its Affiliates, and their respective officers, directors, members, and employees (collectively, “Owner Indemnitees”) from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising from (a) Manager’s gross negligence, willful misconduct, or breach of this Agreement, or (b) Manager’s violation of Applicable Law.

11.2 Indemnification by Owner. Owner shall defend, indemnify, and hold harmless Manager and its Affiliates, officers, directors, employees, and agents (collectively, “Manager Indemnitees”) from and against any claim arising from the condition of the Property or Owner’s breach of this Agreement, except to the extent caused by Manager’s gross negligence or willful misconduct.

11.3 Limitation of Liability. EXCEPT FOR (i) GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, (ii) INDEMNITY OBLIGATIONS, AND (iii) MISAPPLICATION OF FUNDS, MANAGER’S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE AGGREGATE MANAGEMENT FEES ACTUALLY PAID TO MANAGER DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

11.4 Waiver of Consequential Damages. Neither party shall be liable to the other for punitive, exemplary, special, or consequential damages, including lost profits, except to the extent such damages are payable to a third party under an indemnity obligation.

12. DEFAULT & REMEDIES

12.1 Events of Default by Manager.
(a) Failure to perform any material obligation that continues uncured for ten (10) days after written notice (three (3) days for trust account violations or misapplication of funds);
(b) Loss, suspension, or expiration of required license;
(c) Fraud, gross negligence, or willful misconduct;
(d) Insolvency or bankruptcy filing.

12.2 Events of Default by Owner.
(a) Non-payment of sums due that continues for fifteen (15) days after notice;
(b) Material breach of any covenant continuing uncured for ten (10) days after notice;
(c) Insolvency or bankruptcy filing.

12.3 Remedies. Upon any uncured Event of Default, the non-defaulting party may:
(a) terminate this Agreement on written notice;
(b) recover actual damages, subject to the limitations herein;
(c) seek injunctive relief; and
(d) pursue any other remedies available at law or equity.

12.4 Attorneys’ Fees. The prevailing party in any action or proceeding arising out of this Agreement shall be entitled to recover reasonable attorneys’ fees and costs.

13. TERM; TERMINATION

13.1 Initial Term. The term commences on the Effective Date and continues through [INITIAL TERM, e.g., two (2) years] (“Initial Term”), unless earlier terminated in accordance with this Section 13.

13.2 Renewal. The Agreement will automatically renew for successive one-year periods (each a “Renewal Term”) unless either party gives at least sixty (60) days’ prior written notice of non-renewal.

13.3 Termination Without Cause. Either party may terminate without cause upon ninety (90) days’ prior written notice after the Initial Term.

13.4 Obligations on Termination. Upon termination:
(a) Manager shall promptly deliver to Owner all books, records, keys, and funds relating to the Property;
(b) Owner shall pay Manager all accrued but unpaid Fees and reimbursable expenses through the effective date of termination; and
(c) Sections 8, 11, 12, 14, and 15 survive.

14. DISPUTE RESOLUTION

14.1 Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Connecticut, without regard to conflict-of-laws rules.

14.2 Forum Selection. Each party irrevocably submits to the exclusive jurisdiction of the state courts located in [COUNTY], Connecticut, for any action arising out of or relating to this Agreement.

14.3 Optional Arbitration. [OPTIONAL – If selected by the parties, replace Sections 14.2–14.4 with the following:]
“Any dispute, claim, or controversy arising out of or relating to this Agreement shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, conducted in [CITY], Connecticut. Judgment on the award may be entered in any court of competent jurisdiction.”

14.4 Injunctive Relief. Notwithstanding any agreement to arbitrate, either party may seek temporary, preliminary, or permanent injunctive relief in a court of competent jurisdiction to prevent irreparable harm.

14.5 Jury Trial Waiver. [OPTIONAL – If permitted by counsel:]
“EACH PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.”

15. GENERAL PROVISIONS

15.1 Amendments & Waivers. Any amendment or waiver must be in a writing signed by both parties. No waiver of a breach constitutes a waiver of any other or subsequent breach.

15.2 Assignment. Neither party may assign this Agreement without the prior written consent of the other, except that Owner may assign to a successor in interest to the Property upon written notice.

15.3 Successors & Assigns. This Agreement binds and benefits the parties and their respective successors and permitted assigns.

15.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision will be deemed modified to the minimum extent necessary to make it enforceable.

15.5 Entire Agreement. This Agreement constitutes the entire understanding between the parties regarding its subject matter and supersedes all prior agreements or understandings, whether written or oral.

15.6 Counterparts & Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures delivered by electronic means (e.g., PDF, DocuSign) are deemed original.

15.7 Notices. All notices must be in writing and delivered (i) by personal delivery, (ii) by nationally recognized overnight courier (signature required), or (iii) by certified U.S. mail, return receipt requested, to the addresses set forth below (or any updated address given in writing). Notice is effective on receipt or attempted delivery if refused.

15.8 Force Majeure. Neither party is liable for failure or delay in performance caused by events beyond its reasonable control, including acts of God, war, terrorism, pandemics, riots, labor strikes (excluding strikes of its own workforce), or governmental orders, provided the affected party promptly notifies the other and resumes performance as soon as practicable.

15.9 Interpretation. Headings are for convenience only and do not affect interpretation. “Including” means “including without limitation.” No presumption exists against the drafter.

16. EXECUTION BLOCK

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

[// GUIDANCE: Connecticut does not generally require notarization for a property management agreement, but notarization may be advisable for authentication. Insert notary blocks if desired.]

SCHEDULE 1 – Monetary Liens

SCHEDULE 2 – Compliance Exceptions

[// GUIDANCE: Attach schedules as needed to disclose existing mortgages, code violations, environmental notices, etc.]

END OF DOCUMENT