PROPERTY MANAGEMENT AGREEMENT

(South Carolina – Comprehensive Template)

[// GUIDANCE: This template is intentionally robust. Delete any bracketed language or entire provisions that are not applicable to the engagement. Confirm all blanks and bracketed items are fully completed before execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Appointment; Scope of Agency
4. Term & Renewal
5. Manager’s Duties & Authority
6. Owner’s Duties & Authority Limits on Manager
7. Compensation & Expenses
8. Trust Account Compliance (SC-Specific)
9. Records, Reports & Inspection Rights
10. Licensure & Regulatory Compliance (SC-Specific)
11. Insurance & Risk Transfer
12. Representations & Warranties
13. Covenants
14. Events of Default; Notice & Cure
15. Remedies
16. Indemnification & Limitation of Liability
17. Force Majeure
18. Dispute Resolution
19. General Provisions
20. Execution Block
21. Exhibit A – Property Description
22. Exhibit B – Fee Schedule

1. DOCUMENT HEADER

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

• [OWNER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE / INDIVIDUAL] with a principal address at [ADDRESS] (“Owner”); and
• [MANAGER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE] holding [SC LICENSE TYPE] No. [LICENSE #] and having its principal address at [ADDRESS] (“Manager”).

Recitals
A. Owner is the fee simple owner of the real property and improvements located at the address(es) set forth on Exhibit A (collectively, the “Property”).
B. Owner desires that Manager provide certain professional real estate management services for the Property.
C. Manager represents it is duly licensed and qualified under South Carolina law to perform such services and is willing to act as Owner’s exclusive agent for the purposes set forth herein, subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein and 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 shall have the meanings set forth below. Additional terms are defined contextually within the Agreement.

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

“Applicable Law” – All federal, state, county, municipal and local statutes, ordinances, regulations, rules, codes, orders, and requirements of governmental authorities having jurisdiction over the Property or the parties, including without limitation the South Carolina real estate licensing statutes and regulations and any fair housing, landlord-tenant, environmental, or property maintenance laws.

“Gross Collections” – All rents and other sums collected by Manager on behalf of Owner from tenants of the Property, excluding security deposits until applied or forfeited.

“Management Fees” – The fees payable to Manager as set forth in Section 7 and Exhibit B.

“Trust Account” – The federally-insured, interest-bearing (if permitted) escrow/trust account established and maintained by Manager in compliance with South Carolina real estate licensing requirements for handling Owner and tenant funds.

“Work Order” – A written or electronically transmitted request by Manager to a contractor, vendor, or employee for services to the Property.

[// GUIDANCE: Add any specialty defined terms—e.g., “Capital Project,” “Emergency,” etc.—to align with client needs.]

3. APPOINTMENT; SCOPE OF AGENCY

3.1 Exclusive Appointment. Owner hereby appoints Manager as Owner’s exclusive agent to manage, lease, operate, and maintain the Property in accordance with this Agreement. Manager accepts such appointment and agrees to devote commercially reasonable efforts to fulfill the obligations herein.

3.2 Independent Contractor. Manager acts as an independent contractor and not as an employee, partner, or joint venturer of Owner. Nothing herein shall be construed to create a fiduciary relationship beyond the duties imposed by Applicable Law and this Agreement.

4. TERM & RENEWAL

4.1 Initial Term. The term shall commence on the Effective Date and shall continue for [INITIAL TERM, e.g., “one (1) year”] (the “Initial Term”) unless earlier terminated pursuant to Section 14.

4.2 Automatic Renewal. Upon expiration of the Initial Term, the Agreement shall automatically renew for successive [RENEWAL TERM, e.g., “one-year”] periods (each, a “Renewal Term”) unless either Party delivers written notice of non-renewal at least [NON-RENEWAL NOTICE PERIOD] days prior to the end of the then-current term.

5. MANAGER’S DUTIES & AUTHORITY

Subject to Applicable Law, the operating budget approved by Owner (the “Budget”), and the authority limits in Section 6.2, Manager shall:

a. Leasing & Marketing. Advertise vacancies, screen prospective tenants in compliance with fair housing and credit reporting laws, execute leases in Owner’s name on the then-current lease form approved by Owner, and negotiate renewals.
b. Rent Collection. Use commercially reasonable efforts to collect rents and other charges when due, deliver notices of default, and pursue lawful remedies for nonpayment.
c. Maintenance & Repairs. Maintain the Property in good order and condition, procure and supervise vendors, obtain competitive bids for any single expenditure over [BID THRESHOLD] dollars, and respond promptly to emergencies.
d. Capital Improvements. Coordinate capital projects specifically approved in writing by Owner.
e. Tenant Relations. Address tenant inquiries, enforce lease terms, and retain records of tenant communications.
f. Legal Proceedings. File summary ejectment or other actions as attorney-in-fact solely to the extent permitted under the South Carolina Supreme Court’s unlicensed practice of law rules; otherwise, engage legal counsel selected by Owner.
g. Governmental Compliance. Timely comply with inspections, registrations, and reporting obligations under Applicable Law.
h. Other Services. Provide any additional services described in Exhibit B or subsequently agreed upon in a written amendment.

[// GUIDANCE: Insert any property-specific duties (e.g., pool management, HOA interface) here.]

6. OWNER’S DUTIES & AUTHORITY LIMITS ON MANAGER

6.1 Owner Duties. Owner shall:

a. Provide Manager with all records, leases, keys, and access devices necessary for management;
b. Maintain adequate property and liability insurance pursuant to Section 11;
c. Fund any operating deficits within five (5) Business Days of written demand; and
d. Promptly review and approve or reasonably disapprove any item submitted by Manager that requires Owner’s consent.

6.2 Limits on Manager’s Authority. Without prior written consent of Owner, Manager shall not:

a. Enter into any service contract exceeding [CONTRACT TERM LIMIT, e.g., “one (1) year”] or requiring payments in excess of [LIMIT AMOUNT] annually;
b. Make any single non-emergency expenditure exceeding [EXPENDITURE LIMIT] dollars;
c. Sell, convey, or encumber any part of the Property; or
d. Make any admission of liability or settlement of litigation on behalf of Owner.

7. COMPENSATION & EXPENSES

7.1 Management Fee. Owner shall pay Manager a monthly management fee equal to [PERCENTAGE]% of Gross Collections, payable on or before the [DAY] day of each calendar month out of collected rents.

7.2 Leasing Fee. For each new tenancy or renewal exceeding [RENEWAL TERM THRESHOLD], Owner shall pay a leasing fee of [LEASING FEE DETAILS].

7.3 Additional Service Fees. Manager shall be entitled to the fees, if any, specified in Exhibit B for special or extraordinary services.

7.4 Expense Reimbursement. Manager shall be reimbursed for all reasonable, out-of-pocket expenses incurred on behalf of Owner that are consistent with the Budget or otherwise approved by Owner.

7.5 Offsets. Manager may deduct Management Fees and approved reimbursements from Gross Collections prior to remitting balances to Owner.

7.6 Survival. Accrued but unpaid fees shall survive termination.

8. TRUST ACCOUNT COMPLIANCE (SC-SPECIFIC)

8.1 Establishment. Manager shall maintain at least one Trust Account with a financial institution authorized to do business in South Carolina. The account shall be titled to clearly identify the funds as trust funds and shall be designated for the benefit of Owner and tenants as required by Applicable Law.

8.2 Deposits. All rents, security deposits, and other funds belonging to Owner or tenants shall be deposited into the Trust Account not later than the next banking day following receipt or as otherwise permitted under Applicable Law.

8.3 Disbursements. Trust funds may be disbursed only for authorized expenditures, Management Fees, and Owner distributions, each strictly in accordance with Applicable Law and this Agreement.

8.4 Records & Audits. Manager shall keep complete and accurate trust account records and make them available for inspection by the South Carolina Real Estate Commission (“SCREC”) and Owner upon reasonable notice.

8.5 Bonding (Optional). [INSERT if Owner requires fidelity bond or errors & omissions coverage for trust funds.]

[// GUIDANCE: Cross-check SCREC rules on timing of ledger entries and monthly account reconciliation.]

9. RECORDS, REPORTS & INSPECTION RIGHTS

9.1 Records. Manager shall maintain complete books and records for the Property in accordance with generally accepted accounting principles (“GAAP”) or such other basis specified by Owner. Records shall be retained for a minimum of five (5) years after the year to which they relate or such longer period as required by Applicable Law.

9.2 Reports. Within [REPORTING PERIOD, e.g., “fifteen (15) days”] after each calendar month-end, Manager shall deliver to Owner: (a) rent rolls; (b) income and expense statements; (c) balance sheets; (d) variance reports comparing actual results to the Budget; and (e) such other reports reasonably requested by Owner.

9.3 Inspection. Owner or its authorized representatives may inspect the Property and all books and records upon not less than two (2) Business Days’ notice, during normal business hours.

10. LICENSURE & REGULATORY COMPLIANCE (SC-SPECIFIC)

10.1 Licensure. Manager represents and warrants it is, and throughout the Term shall remain, duly licensed as a property manager-in-charge or broker-in-charge (as applicable) under South Carolina law.

10.2 Compliance Manual. Manager shall maintain and follow written office policies and procedures as required by SCREC, including, without limitation, trust account handling and recordkeeping procedures.

10.3 Mandatory Disclosures. Manager shall provide Owner with all disclosures required by South Carolina real estate licensing law, including but not limited to:
a. A written disclosure of all fees and compensation received from third parties in connection with managing the Property;
b. A written brokerage relationship disclosure to each tenant, where required; and
c. Timely disclosure of any material conflict of interest.

11. INSURANCE & RISK TRANSFER

11.1 Owner Insurance. Owner shall, at its sole cost, maintain:
a. Commercial property insurance covering the full replacement cost of the improvements;
b. Commercial general liability insurance with limits not less than $[CGL LIMIT] per occurrence and $[AGGREGATE LIMIT] aggregate; and
c. Any additional coverages (e.g., flood, windstorm, boiler & machinery) as may be customary or required by mortgage lenders.

11.2 Manager Insurance. Manager shall maintain:
a. Professional liability (errors & omissions) insurance in the amount of not less than $[E&O LIMIT] per claim;
b. Fidelity bond or crime coverage insuring against misappropriation of trust funds in the amount of not less than $[BOND LIMIT]; and
c. Workers’ compensation insurance as required by law.

11.3 Certificates. Each Party shall deliver certificates of insurance evidencing the required coverages upon request. Policies shall provide for thirty (30) days’ prior written notice of cancellation or non-renewal.

12. REPRESENTATIONS & WARRANTIES

12.1 Mutual. Each Party represents and warrants that:
a. It is duly formed, validly existing, and in good standing under the laws of its jurisdiction of formation;
b. It has full power and authority to enter into and perform this Agreement;
c. This Agreement constitutes a legal, valid, and binding obligation enforceable against it in accordance with its terms; and
d. Its execution, delivery, and performance of this Agreement do not violate any agreement, law, or court order binding upon it.

12.2 Manager Additional. Manager further represents and warrants that:
a. All licenses required to perform its duties are current and in good standing;
b. It has, and will maintain, adequate staff and resources to perform its obligations; and
c. It will comply with all Applicable Law at all times.

12.3 Survival. The representations and warranties in this Section shall survive expiration or termination of the Agreement for a period of two (2) years.

13. COVENANTS

13.1 Manager Covenants. Manager covenants that it shall:
a. Perform its duties in a commercially reasonable, diligent, and professional manner;
b. Use reasonable care to avoid waste, injury, or damage to the Property;
c. Not commingle Owner or tenant funds with Manager’s own funds;
d. Provide Owner prompt written notice of: (i) any tenant default; (ii) any governmental notice or violation; (iii) any casualty loss; and (iv) any legal proceeding involving the Property or Manager’s services.

13.2 Owner Covenants. Owner covenants that it shall:
a. Provide timely decisions, approvals, and funds required for Property operations;
b. Indemnify Manager as set forth in Section 16;
c. Not interfere unreasonably with Manager’s performance.

14. EVENTS OF DEFAULT; NOTICE & CURE

14.1 Manager Default. The following constitute events of default by Manager:
a. Material breach of this Agreement not cured within fifteen (15) days after written notice (five (5) days for monetary breaches);
b. Gross negligence, willful misconduct, fraud, or misappropriation of funds;
c. Insolvency, bankruptcy filing, or loss/suspension of required licensure.

14.2 Owner Default. Owner shall be in default upon:
a. Failure to fund an operating deficit or pay Manager any amount due within ten (10) days after written notice;
b. Material breach not cured within fifteen (15) days after written notice; or
c. Insolvency or bankruptcy filing.

14.3 Immediate Termination. Either Party may terminate immediately upon written notice if the other Party commits an uncured event of default described in Sections 14.1(b) or 14.2(b).

15. REMEDIES

15.1 Manager Remedies. Upon Owner default, Manager may:
a. Suspend performance until cure;
b. Apply available trust funds to unpaid amounts;
c. Terminate the Agreement; and
d. Pursue all other remedies at law or equity.

15.2 Owner Remedies. Upon Manager default, Owner may:
a. Assume direct control of the Trust Account;
b. Terminate the Agreement;
c. Seek specific performance, injunctive relief, or damages; and
d. Recover reasonable attorneys’ fees and costs.

15.3 Cumulative. All remedies are cumulative and non-exclusive.

16. INDEMNIFICATION & LIMITATION OF LIABILITY

16.1 Manager Indemnification of Owner. Manager shall indemnify, defend, and hold harmless Owner and its Affiliates, partners, members, managers, shareholders, officers, directors, employees, and agents (collectively, “Owner Indemnitees”) from and against all claims, losses, damages, liabilities, judgments, penalties, fines, costs, and expenses (including reasonable attorneys’ fees) (collectively, “Losses”) arising out of or relating to:
a. Manager’s breach of this Agreement;
b. Gross negligence, willful misconduct, or fraud by Manager or its personnel;
c. Violation of Applicable Law by Manager; or
d. Bodily injury or property damage caused by Manager’s acts or omissions.

16.2 Exclusions. Manager shall not be liable for Losses resulting solely from:
a. Acts or omissions of Owner or third parties not under Manager’s control;
b. Owner’s instructions that are not negligent, unlawful, or in breach of this Agreement; or
c. Casualty events or conditions reasonably beyond Manager’s control.

16.3 Liability Cap. NOTWITHSTANDING ANYTHING TO THE CONTRARY, MANAGER’S TOTAL LIABILITY TO OWNER FOR ALL CLAIMS ARISING UNDER THIS AGREEMENT SHALL NOT EXCEED AN AMOUNT EQUAL TO THE MANAGEMENT FEES ACTUALLY RECEIVED BY MANAGER DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM, EXCEPT TO THE EXTENT SUCH CLAIM RESULTS FROM MANAGER’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, FRAUD, OR MISAPPROPRIATION OF FUNDS.

16.4 Survival. This Section shall survive termination of the Agreement.

[// GUIDANCE: The liability cap expressly tracks the “management_fees” cap requested in the metadata. Adjust if client or insurer requires higher limits.]

17. FORCE MAJEURE

Neither Party shall be liable for any failure or delay in performance (except monetary obligations) due to acts of God, war, terrorism, civil commotion, epidemic, pandemic, governmental action, labor dispute, or any other cause beyond such Party’s reasonable control (“Force Majeure”). The affected Party shall give notice within five (5) Business Days and shall use commercially reasonable efforts to mitigate and resume performance.

18. DISPUTE RESOLUTION

18.1 Governing Law. This Agreement and any disputes hereunder shall be governed by and construed in accordance with the laws of the State of South Carolina, without regard to conflicts-of-law rules.

18.2 Forum Selection. Each Party irrevocably submits to the exclusive jurisdiction of the state courts located in [COUNTY], South Carolina for any action arising out of or relating to this Agreement, subject to Section 18.3 if arbitration is selected.

18.3 Arbitration (Optional). [ARBITRATION SELECTED: YES/NO]. If “YES,” the following applies:
a. Any dispute not resolved informally within thirty (30) days shall be finally resolved by binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules by a single arbitrator experienced in real estate matters.
b. The seat of arbitration shall be [CITY], South Carolina.
c. Judgment on the award may be entered in any court having jurisdiction.
d. Each Party shall bear its own attorneys’ fees and costs, and the arbitrator may award fees and costs in accordance with Section 15.

18.4 Jury Trial Waiver (Optional). [JURY WAIVER INCLUDED: YES/NO]. If “YES,” each Party knowingly and voluntarily waives its right to a trial by jury in any action or proceeding arising out of this Agreement.

18.5 Injunctive Relief. Nothing herein shall impair a Party’s right to seek interim or permanent injunctive relief, specific performance, or other equitable remedies in a court of competent jurisdiction to preserve the status quo or prevent irreparable harm.

19. GENERAL PROVISIONS

19.1 Amendment & Waiver. No amendment shall be effective unless in writing and signed by both Parties. No waiver shall be deemed a continuing waiver unless expressly so stated.

19.2 Assignment. Manager may not assign this Agreement without Owner’s prior written consent, except to an Affiliate controlling, controlled by, or under common control with Manager and properly licensed under Applicable Law. Any purported assignment in violation of this Section is void. This Agreement binds and benefits the Parties and their respective successors and permitted assigns.

19.3 Severability. If any provision is determined invalid or unenforceable, the remaining provisions shall continue in full force, and the invalid provision shall be deemed reformed to the minimum extent necessary to effectuate the Parties’ intent.

19.4 Entire Agreement. This Agreement, together with all Exhibits, constitutes the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior agreements or understandings.

19.5 Counterparts; Electronic Signatures. The Agreement may be executed in counterparts (including by PDF or electronic signature compliant with the federal E-SIGN Act and the South Carolina Uniform Electronic Transactions Act), each of which shall be deemed an original and all of which together constitute one instrument.

19.6 Notices. All notices shall be in writing and delivered by (i) certified U.S. mail, return receipt requested, (ii) nationally recognized overnight courier, or (iii) electronic mail with confirmed receipt, to the addresses set forth above (or as later designated). Notice is effective upon receipt or refusal.

19.7 No Third-Party Beneficiaries. Except as expressly provided in Section 16 (Indemnification), nothing herein confers any rights on any person or entity other than the Parties.

19.8 Headings. Section headings are for convenience only and do not affect interpretation.

20. EXECUTION BLOCK

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

OWNER:
[OWNER LEGAL NAME]
By: ____
Name: ____
Title: ____
Date: ________

MANAGER:
[MANAGER LEGAL NAME]
By: ____
Name: ____
Title: ____
Date: ________

[// GUIDANCE: If either Party is an entity, confirm signatory authority (e.g., board resolutions, operating agreement authorization). Consider notarization if local recording or lender requirements apply.]

21. EXHIBIT A – PROPERTY DESCRIPTION

[Insert legal description, street address, parcel identification number, and any appurtenant rights.]

22. EXHIBIT B – FEE SCHEDULE

1. Management Fee: [____]% of Gross Collections (Section 7.1)
2. Leasing Fee: [Detail calculation] (Section 7.2)
3. Renewal Fee: [____]
4. Maintenance Coordination Fee: [____]% of cost for any single job exceeding $[THRESHOLD]
5. Project Management Fee (Capital Projects): [____]% of total project cost
6. Late Fee Sharing: [____]% of late fees collected
7. Miscellaneous Fees: [Describe]

[// GUIDANCE: Clearly disclose all compensation structures to comply with SCREC disclosure rules.]