Hi Forum,
Thanks for your time and effort on this topic. Stepnharp
**********************************
Background:
1. Contract is for a House Lease in Texas.
2. I have rental home and use a Property Management company for leasing the home.
3. The Property Management contract is called the "Exclusive Management Agreement"
4. Exclusive Management Agreement is the contract I signed with the Property Management Company.
5. The Property Management name have been replaced by the text "Property Management Company"
Q1: I have a question about what exactly the following statement means "from the date of the earlier of termination or expiration hereof" (6. Term below).
Q2: What is the exact date that is being determined by the statement, "from the date of the earlier of termination or expiration hereof" (6. Term below).
1. Lease was signed in Oct 2011.
2. Lease has had 5 different roommates added to it or removed from it.
3. The current tenant (only one name current lease) was added to the lease in June 2014.
4. The Lease is a Month-to-Month Lease
The Exclusive Management Agreement states the following:
6. Term (abbreviated, complete paragraph is below)
..... If a tenant procured by or through the Property Management Company purchases the Property at any time within eighteen (18) months from the date of the earlier of termination or expiration hereof, then Owners shall pay a commission, due at closing in an amount equal to four percent (4%) of the gross selling price (the "Commission").
6. Term. (Complete text)
If the Property is presently leased, then: (a) this agreement shall become effective on the date first written and continue during the Term of the lease agreement, including all renewal, extension and holdover terms, and shall continue during the Term of all succeeding tenants; and (b) Owners may terminate this agreement only during periods of vacancy. If the Property is not presently leased, then: (c) this agreement shall become effective on the date first written and shall continue for the next following 60 days; (d) if a tenant is obtained during such time by any party including Owners, then this agreement shall automatically continue during the Term of the lease agreement, including all renewal, extension and holdover terms; (e) Owners may terminate this agreement during periods of vacancy; and (f) Owners may also elect to terminate this agreement during the first 60 days of the Term, by issuing written notice to PROPERTY MANAGEMENT COMPANY and delivering to PROPERTY MANAGEMENT COMPANY a $200 payment intended to partially reimburse PROPERTY MANAGEMENT COMPANY for its marketing expenses. In any and all other events, Owners shall have no right to terminate this agreement because Owners, PROPERTY MANAGEMENT COMPANY or another party procured the tenant(s), or for any other reason. PROPERTY MANAGEMENT COMPANY reserves the right to assign this agreement. PROPERTY MANAGEMENT COMPANY may elect to terminate this agreement and accelerate payment of all remaining Fees if Owners: (g) commit an Event of Default, which includes property foreclosure proceedings whereas management fees would be due through current lease expiration date and any security deposit PROPERTY MANAGEMENT COMPANY holds for current tenant would immediately be refunded to tenant. (h) fail to timely pay the Fees; or (i) fail to immediately reimburse PROPERTY MANAGEMENT COMPANY for defense costs incurred by PROPERTY MANAGEMENT COMPANY in the rendition of its Services. In the event of termination without Event of Default and if Owners are not delinquent in the payment of Fees, then all accrued Fees shall be due and payable upon the date that PROPERTY MANAGEMENT COMPANY issues written demand therefore. If a tenant procured by or through PROPERTY MANAGEMENT COMPANY purchases the Property at any time within eighteen (18) months from the date of the earlier of termination or expiration hereof, then Owners shall pay PROPERTY MANAGEMENT COMPANY a commission, due at closing in an amount equal to four percent (4%) of the gross selling price (the �Commission�). All funds due PROPERTY MANAGEMENT COMPANY are payable in Dallas County, Texas, and if funds are not paid to PROPERTY MANAGEMENT COMPANY upon receipt of PROPERTY MANAGEMENT COMPANY �s invoice, then such funds will thereafter accrue interest at the rate of eighteen percent (18%) per annum until paid in full.
Thanks for your time and effort on this topic. Stepnharp
**********************************
Background:
1. Contract is for a House Lease in Texas.
2. I have rental home and use a Property Management company for leasing the home.
3. The Property Management contract is called the "Exclusive Management Agreement"
4. Exclusive Management Agreement is the contract I signed with the Property Management Company.
5. The Property Management name have been replaced by the text "Property Management Company"
Q1: I have a question about what exactly the following statement means "from the date of the earlier of termination or expiration hereof" (6. Term below).
Q2: What is the exact date that is being determined by the statement, "from the date of the earlier of termination or expiration hereof" (6. Term below).
1. Lease was signed in Oct 2011.
2. Lease has had 5 different roommates added to it or removed from it.
3. The current tenant (only one name current lease) was added to the lease in June 2014.
4. The Lease is a Month-to-Month Lease
The Exclusive Management Agreement states the following:
6. Term (abbreviated, complete paragraph is below)
..... If a tenant procured by or through the Property Management Company purchases the Property at any time within eighteen (18) months from the date of the earlier of termination or expiration hereof, then Owners shall pay a commission, due at closing in an amount equal to four percent (4%) of the gross selling price (the "Commission").
6. Term. (Complete text)
If the Property is presently leased, then: (a) this agreement shall become effective on the date first written and continue during the Term of the lease agreement, including all renewal, extension and holdover terms, and shall continue during the Term of all succeeding tenants; and (b) Owners may terminate this agreement only during periods of vacancy. If the Property is not presently leased, then: (c) this agreement shall become effective on the date first written and shall continue for the next following 60 days; (d) if a tenant is obtained during such time by any party including Owners, then this agreement shall automatically continue during the Term of the lease agreement, including all renewal, extension and holdover terms; (e) Owners may terminate this agreement during periods of vacancy; and (f) Owners may also elect to terminate this agreement during the first 60 days of the Term, by issuing written notice to PROPERTY MANAGEMENT COMPANY and delivering to PROPERTY MANAGEMENT COMPANY a $200 payment intended to partially reimburse PROPERTY MANAGEMENT COMPANY for its marketing expenses. In any and all other events, Owners shall have no right to terminate this agreement because Owners, PROPERTY MANAGEMENT COMPANY or another party procured the tenant(s), or for any other reason. PROPERTY MANAGEMENT COMPANY reserves the right to assign this agreement. PROPERTY MANAGEMENT COMPANY may elect to terminate this agreement and accelerate payment of all remaining Fees if Owners: (g) commit an Event of Default, which includes property foreclosure proceedings whereas management fees would be due through current lease expiration date and any security deposit PROPERTY MANAGEMENT COMPANY holds for current tenant would immediately be refunded to tenant. (h) fail to timely pay the Fees; or (i) fail to immediately reimburse PROPERTY MANAGEMENT COMPANY for defense costs incurred by PROPERTY MANAGEMENT COMPANY in the rendition of its Services. In the event of termination without Event of Default and if Owners are not delinquent in the payment of Fees, then all accrued Fees shall be due and payable upon the date that PROPERTY MANAGEMENT COMPANY issues written demand therefore. If a tenant procured by or through PROPERTY MANAGEMENT COMPANY purchases the Property at any time within eighteen (18) months from the date of the earlier of termination or expiration hereof, then Owners shall pay PROPERTY MANAGEMENT COMPANY a commission, due at closing in an amount equal to four percent (4%) of the gross selling price (the �Commission�). All funds due PROPERTY MANAGEMENT COMPANY are payable in Dallas County, Texas, and if funds are not paid to PROPERTY MANAGEMENT COMPANY upon receipt of PROPERTY MANAGEMENT COMPANY �s invoice, then such funds will thereafter accrue interest at the rate of eighteen percent (18%) per annum until paid in full.
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