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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.
Indemnification Clauses
Negotiation strategy
Negotiate to limit indemnity obligations to direct damages and exclude indirect, special, or consequential damages. Ensure the indemnity is capped and includes carve-outs for gross negligence or willful misconduct by the Landlord.
Seek broad indemnification from the Tenant for any claims arising from their use of the premises. Include provisions for the Tenant to cover legal costs and ensure the indemnity survives lease termination.
Essential elements
1
Scope of Indemnity
Defines indemnity coverage limits.
2
Exclusions from Indemnity
Lists damages not covered.
3
Notice and Defense
Details claim notification process.
Action framework
ACCEPT
Propose edits to include specific exclusions for indirect damages and ensure the indemnity is capped.
EDIT
Reject clauses that impose unlimited liability or lack clear exclusions and limitations.
ADD
Add language to cover notice and defense of claims, and ensure survival of obligations post-termination.
PRO TIP
Always ensure indemnification clauses are aligned with industry standards and include clear limitations and exclusions to manage risk effectively.
Real-world examples
FAVORABLE
Preferred Indemnification by Tenant
"The Tenant shall indemnify, defend, and hold harmless the Landlord from and against any and all claims, liabilities, losses, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or related to the Tenant's use or occupancy of the Premises, except to the extent such claims, liabilities, losses, damages, costs, and expenses are caused by the gross negligence or willful misconduct of the Landlord."
NEUTRAL
Limitation of Liability
"Notwithstanding anything to the contrary contained herein, the liability of each party under this indemnification provision shall be limited to direct damages and shall not exceed an amount equal to the total rent payable by the Tenant under this Lease for the twelve (12) months immediately preceding the event giving rise to the claim."
UNFAVORABLE
Unlimited Indemnity
"The Tenant shall indemnify the Landlord for any and all claims without limitation or exclusion."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, indemnification clauses should include specific carve-outs for gross negligence and willful misconduct to prevent excessive liability.
Cross-Border Transactions
For cross-border transactions, ensure indemnification clauses comply with international laws and address currency and jurisdictional issues.
Technology Agreements
In technology agreements, indemnification should cover intellectual property claims and include specific exclusions for indirect damages.
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