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!
2 Answers from Attorneys
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.
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.
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