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.
Why This Matters: Unfavorable venue or lack of ADR may lead to protracted and expensive litigation. Clear resolution mechanisms accelerate dispute handling and reduce legal fees.
Negotiation strategy
If you're the Manager:
Ensure the dispute resolution clause aligns with the company's operational jurisdictions to minimize travel and legal costs. Opt for mediation as a first step to preserve business relationships.
If you're the Landlord:
Negotiate for a venue that is convenient and cost-effective for the contractor. Advocate for arbitration to ensure a binding resolution without court involvement.
Essential elements
1
Governing Law
Jurisdiction for legal interpretation.
2
Venue
Location for legal proceedings.
3
Alternative Dispute Resolution
Methods like mediation or arbitration.
Action framework
ACCEPT
Propose edits if the venue is inconvenient or the ADR process is unclear.
EDIT
Reject if the clause imposes excessive costs or risks.
ADD
Add language to specify ADR timelines and confidentiality.
PRO TIP
Always specify a neutral venue to avoid home-court advantage and ensure fairness.
Example clauses
FAVORABLE
Balanced ADR Clause
"In the event of any dispute, the parties agree to first attempt resolution through mediation administered by [Mediation Institution]. If unresolved, arbitration will follow under [Arbitration Institution] rules."
NEUTRAL
Standard Venue Clause
"Any legal action shall be brought in the courts located in [City, State]."
UNFAVORABLE
One-Sided Venue Clause
"All disputes shall be resolved exclusively in the courts of [Party 1's City, State]."
Fallbacks
Cross-Border Transactions
In cross-border deals, specify international arbitration to avoid jurisdictional issues and ensure enforceability.
High-Value Contracts
For high-value contracts, include detailed ADR procedures to manage complex disputes efficiently.
Long-Term Partnerships
In long-term partnerships, prioritize mediation to maintain relationships and resolve issues amicably.
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WEEK 1
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WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.