Signing The Building Management Contract
Some building owners appoint a manager or managing company to take care of their property. Both parties have to sign an agreement document to establish the contract. The building management contract is a legally binding agreement on both parties. The document specifies rights, duties and responsibilities of each party. Depending on the terms of the agreement, the agent has to collect rents, contract maintenance services, manage accounting and provide other services.
The contract has names, addresses and other details of the agent and building owner. The terms specify the scope of works assigned to the agent. It specifies how to terminate the agreement after giving written notice. The agent gets the right to collect rents on behalf of the owner. There may be other income sources earned from the building asset. The agent has the right to demand, collect and request such proceeds. The owner can allow the agent to carry out necessary repairs after hiring contractors. The agreement specifies how much payment the agent will receive for all such services and supplies.