Property Management Agreement (Page 3 of 4) in pdf

4. The Agent is authorised by the Owner to represent the Owner in enforcing the Owner' legal rights and

claims in terms of the Lease Agreement until written notice to the contrary is received by the Agent from

the Owner.

5. The Agent is authorised by the Owner to incur reasonable expenses from time to time if required for any

maintenance and upkeep of the property for which the Owner may be liable in terms of the Lease

Agreement and to offset such expenses against monies collected by the Agent on behalf of the Owner

from time to time. If any expense is reasonably expected to exceed R 500 (exclusive of VAT), the

incurring of such expense will be subject to specific authorization by the Owner upon presentation of a

quotation from an appointed contractor.

6. The Agent is authorized by the Owner to list the Tenant with a credit bureau in the event of the Tenant

defaulting in the payment of rental under the Lease Agreement.

7. The Owner will pay the Agent a commission equal to 15% plus VAT on all rental actually paid, or any

penalties paid in lieu of rental by the Tenant in terms of the Lease Agreement, for the full duration of the

lease period including any extension thereof. The commission will be payable monthly in arrears. The

Agent’s commission together with VAT will be offset against rental collected by the Agent on the

Owner’s behalf in accordance with the Lease Agreement. In the event of the Tenant paying any rental

directly to the Owner, the Owner will pay the commission due to the Agent within 5 days of receipt of

such rental.

8. If the Owner, for any reason other than a breach by the Agent of its obligations hereunder, terminates

this agreement before the end of the lease period of the Lease Agreement (or any extension thereof), the

Owner will pay the Agent an amount equal to the commission it would have received for the remaining

period of the lease.

9. If a Tenant who has been introduced to the property by the Agent purchases the property from the Owner

during the currency of the Lease Agreement or within a period of 12 months after the termination of the

Lease Agreement, the Owner will pay commission to the Agent at the rate of 6% plus Vat thereon on the

purchase price.

10. No variation of this agreement will be of any force or effect unless recorded in writing and signed by

both parties hereto.

Property Management Agreement Page 3