Legal Question in Landlord & Tenant Law in California

Property Management Agreement

We own rental property and are considering hiring a particular Property Management Company. They have provided me with a draft of their standard contract, which is the California Association of Realtor's Property Management Agreement (Form PMA, Revised 4/03).

The agreement identifies the contracting party as a Broker, acting as a dual agent (for me and my renter).

HERE'S MY QUESTION:

Does the ''Indemnity'' clause (Paragraph 4(D)) expose me to potential liability for illegal or negligent acts by the Broker or any unlicensed employee or subagent hired by her Management company?

Thank you for your assistance!


Asked on 6/22/09, 10:40 am

2 Answers from Attorneys

Jerold M. Gorski Law Offices of Jerold M. Gorski

Re: Property Management Agreement

I do not have that particular form in front of me. Indemnity provisions can be a bit tricky and often work in conjunction with other clauses. Do not indemnify the PMC -- you are retaining the PMC because they are the experts and they should stand behind their work. If you are serious about running a business, always run any business contract by your attorney before you sign.

Read more
Answered on 6/22/09, 4:48 pm
David Gibbs The Gibbs Law Firm, APC

Re: Property Management Agreement

Though attorneys review CAR forms all of the time, the forms change regularly. It is impossible for anyone to give you an exact answer without reviewing the actual document they are asking you to sign. If you are concerned, strike that part of the contract out - all contracts are negotiable, and if this property management company won't accept the change, move on to the next one.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Read more
Answered on 6/22/09, 11:56 am


Related Questions & Answers

More Landlord & Tenants questions and answers in California