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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.
Environmental Liability
Negotiation strategy
Ensure compliance with all environmental laws and regulations. Limit liability to actions directly caused by the tenant and require a comprehensive existing condition report.
Require the tenant to bear the costs of remediation for any contamination they cause. Insist on obtaining an existing condition report to document pre-existing issues.
Essential elements
1
Environmental Compliance
Adherence to environmental laws.
2
Remediation Obligations
Responsibilities for contamination cleanup.
3
Liability for Contamination
Indemnification for hazardous materials.
Action framework
ACCEPT
Propose edits if the clause lacks clear compliance obligations or cost allocation.
EDIT
Reject if the clause exposes the tenant to unknown pre-existing liabilities.
ADD
Add language requiring an existing condition report if absent.
PRO TIP
Always obtain a detailed environmental condition report before lease commencement to avoid unforeseen liabilities.
Real-world examples
FAVORABLE
Preferred Environmental Compliance
"The Tenant shall comply with all applicable environmental laws and regulations during the term of this lease. The Tenant shall not cause or permit any hazardous materials to be brought upon, stored, used, or disposed of on the premises except as permitted by applicable law."
NEUTRAL
Standard Remediation Clause
"The Tenant shall notify the Landlord of any contamination and take necessary actions to remediate in accordance with applicable laws."
UNFAVORABLE
Broad Liability Acceptance
"The Tenant accepts all liability for environmental conditions, regardless of cause or timing."
Alternative scenarios & positions
High-Risk Industrial Sites
In high-risk industrial sites, ensure more stringent compliance and frequent environmental audits to mitigate potential liabilities.
Urban Redevelopment Projects
For urban redevelopment, focus on historical contamination and require detailed site assessments to manage legacy issues.
Greenfield Developments
In greenfield developments, prioritize preventive measures and environmental impact assessments to maintain compliance.
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