PM Contract questions

[Cherilyn Jorgenson]

Hi All,

I need to sign a new PM contract for a MF property I own out of state (CA). I have some issues with the terms of the contract and would love to know what is "normal and customary" verbiage and if there mat be any legal terms specific to CA? If you have comments and suggestions, I'd appreciate it. See the areas of concern below regarding third parties andtermination :

4. Agent’s Supervision of Third Parties

Except as otherwise herein set forth, in the management, maintenance, operation, repair, or rehabilitation of the Premises, Agent is authorized and empowered to hire, employ, discharge, and otherwise supervise third parties, including without limitation, servants, employees, contractors, subcontractors and other personnel engaged on behalf of and at the sole expense of Owner.

Owner shall have sole responsibility and liability for the acts, transactions, or omissions of such third party. In no event shall such third party be deemed to be an employee of Agent.

All compensation paid to third parties, including without limitation, income taxes, social security tax, unemployment insurance, workers’ compensations insurance, and other withholdings, shall be made by Agent, showing Owner as employer, and paid from the Premises Operating Account. With respect to any third person employed on behalf of Owner, Agent shall not be liable to such third party for their wages, commissions, or other compensation.

11. Termination of Agent

Upon termination of or withdrawal from this Agreement, Owner shall assume all obligation, liability, responsibility, and costs unpaid, contested or otherwise outstanding under any contract or agreement made by Agent, including without limitation, attorney’s fees. Upon request therefore by Agent, Owner shall furnish security in an amount satisfactory to Agent equal to 125% of the aggregate amount of the unpaid, contested, or otherwise outstanding amount due under any contract or agreement executed by Agent on behalf of Owner.

2. Owner does hereby hold INTEGRITY PROPERTY MANAGEMENT, INC., and its legal representatives, successors, and assigns (“Indemnity”), harmless against any loss, expense, or liability, of any kind or description, whether foreseeable or unforeseeable, including reasonable attorney’s fees, imposed on Indemnities as a result of or in connection with:

A. Any and all of the acts, transactions, failures to act, or omissions to act, of INTEGRITY PROPERTY MANAGEMENT, INC., or its officers, directors, employees, servants, or other agents, whether directly or indirectly involved with the occupancy, management, operation, maintenance, repair, or renovation of the Premises; or

B. Any and all acts, transactions, failures to act, or omissions to act of any third party as a result of a direction or delegation by INTEGRITY PROPERTY MANAGEMENT, INC., or its officers, directors, employees and servants, whether directly or indirectly involved with the occupancy, management, operation, maintenance, repair, or renovation of the Premises.