5
PLAYBOOK TEMPLATES
Property Management Agreement
A Property Management Agreement sets the terms under which an agent manages real estate on behalf of an owner. This playbook outlines duties of care, indemnification, and compensation structures.
Default and Remedies
Negotiation strategy
Ensure that default events are clearly defined and include specific notice requirements. Advocate for reasonable cure periods to allow the Tenant time to address issues.
Negotiate for proportionate remedies and ensure that default definitions are not overly broad. Seek clarity in notice requirements and advocate for fair cure periods.
Essential elements
1
Events of Default
Defines what constitutes a default.
2
Notice Requirements
Specifies how default notices are given.
3
Cure Periods
Time allowed to remedy defaults.
Action framework
ACCEPT
Propose edits when default definitions are too broad or cure periods are too short.
EDIT
Reject clauses that impose unfair penalties or lack clear notice requirements.
ADD
Add language for proportionate remedies and timely resolution.
PRO TIP
Always ensure that default clauses are specific and remedies are proportionate to avoid unnecessary disputes.
Real-world examples
FAVORABLE
Preferred Default Clause
"An event of default shall occur if the Tenant fails to pay rent or any other sum due under this Lease within ten (10) days after written notice from the Landlord specifying such failure."
NEUTRAL
Standard Notice Clause
"The Landlord shall provide written notice to the Tenant specifying the nature of the default and the actions required to cure such default."
UNFAVORABLE
Harsh Default Penalty
"The Landlord may terminate the Lease immediately upon any default without notice or opportunity to cure."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure that default clauses are more stringent to protect against significant financial losses.
Long-Term Leases
For long-term leases, negotiate for extended cure periods to accommodate potential financial fluctuations.
Multi-Tenant Buildings
In multi-tenant buildings, ensure that default clauses consider the impact on other tenants and common areas.
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