Fillable Property Management Agreement (Page 5 of 15) in pdf

Client Trust Accounts; Books and Records.

Disbursements from Clients’ Trust Account - Property Management. If sufficient funds are

5.1

available in the Clients’ Trust Account - Property Management as reflected on the account ledger, Manager

shall have the right to withdraw from such account, (i) any and all earned compensation and reimbursements to

Manager provided for under the terms and conditions of this Agreement and (ii) any and all expenses and

expenditures as provided in this Agreement. Such withdrawal may be made as such amounts are due, and at

least once each month. The accounts and records entries for payment of such sums shall include the date, the

amount of compensation and reimbursements withdrawn, the check number, and the Owner’s ledger account

number or identifying code (which may be the owner’s name). Disbursements from the Clients’ Trust Account

- Property Management may be based on deposits made into the account by wire or electronic transfer so long

as the deposit is first verified by the Manager in the manner specified in applicable REA Rules. After deducting

its compensation and any other sums due from Owner pursuant to any provision of this Agreement, once each

month the Manager shall remit to Owner a check in the amount of the net Client Funds collected, minus

reserves and minus such sums as Owner may have directed herein or otherwise.

Supplements to Client’s Trust Account – Property Management. Owner shall at all times

5.2

maintain sufficient funds in the Client’s Trust Account – Property Management, to enable Manager to pay

reasonably anticipated obligations of the Property in a timely manner. Owner and Manager agree that Manager

shall maintain a minimum balance as indicated on the first page of this Agreement to ensure adequate funds are

available to pay the operating expenses of the Property. If collections are projected to be insufficient or will not

be received in time to satisfy this requirement, Owner shall provide Manager with the necessary funds within

two (2) business days following Manager’s request therefore. If Owner has not provided said funds within

seven (7) days after Manager’s request, Manager may, at its sole option, terminate this Agreement. Manager

shall not be required to advance funds for Owner’s account. However, should Manager make a payment for

Owner’s account and should a deficit occur therein, upon notification by Manager, Owner shall immediately

remit to Manager sufficient funds to remove the deficit.

Interest on Clients’ Trust Accounts. Owner hereby authorizes, but does not require, Manager to

5.3

establish the Clients’ Trust Account referred to herein as a federally insured interest bearing trust bank account.

If such account is an interest-bearing account, Manager expressly acknowledges that all earnings on such

account shall be owned by and shall inure to the benefit of Owner.

Owner’s Deliveries. Upon commencement of this Agreement Owner shall promptly furnish

5.4

Manager with all documents and records required for the management of Property, including but not limited to

all then existing: leases, rental agreements, amendments and correspondence related thereto; the status of rental

payments, mortgage loan information and payments instructions, copies of service contracts in effect, and all

applicable insurance policies.

5.5

Accounts, Records, and Monthly Statements.

Manager shall keep complete and detailed

accounts and records of its property management activities relating to the Property in accordance with Oregon

laws and REA Rules. Such records shall include, without limitation, a separate Owner’s ledger with reference

to Manager’s receipts and disbursements with respect to the Property. When funds from more than one

property are deposited into a Clients’ Trust Account, each entry for a receipt or disbursement shall be identified

with the code assigned by the Manager to the corresponding property management agreement with an owner.

Manager will keep such records in its standard format; Manager will provide reports in any non-standard format

requested by Owner at an additional charge. Manager shall account for all checks, including voided checks, as

part of Manager’s record keeping obligation under this Agreement. Manager shall reconcile all Clients’ Trust

PROPERTY MANAGEMENT AGREEMENT - Page 5

Property Management Agreement Page 5

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