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Asset Management Agreement (Real Estate) for Canada

Asset Management Agreement (Real Estate) Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes the relationship between a professional asset manager and a property owner. The agreement details the manager's authority to oversee, maintain, and optimize real estate assets on behalf of the owner, including responsibilities for property management, financial reporting, maintenance, leasing, and strategic asset optimization. It incorporates Canadian federal and provincial regulatory requirements, particularly those relating to real estate management, financial services, and property law.

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Asset Management Agreement (Real Estate)

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What is a Asset Management Agreement (Real Estate)?

The Asset Management Agreement (Real Estate) is a crucial document used when property owners wish to delegate the management and optimization of their real estate assets to professional managers in Canada. It establishes the legal framework for the relationship between the asset manager and the property owner, detailing the scope of services, decision-making authority, performance metrics, and compensation structure. This agreement is particularly important in commercial, institutional, and large-scale residential real estate contexts, where professional management is essential for maximizing asset value and maintaining regulatory compliance. The document must comply with Canadian federal and provincial legislation, including securities regulations, real estate laws, and financial services requirements. It typically includes comprehensive provisions for reporting, risk management, and environmental compliance, reflecting the complex nature of professional real estate asset management.

What sections should be included in a Asset Management Agreement (Real Estate)?

1. Parties: Identifies and defines the Asset Manager and the Property Owner/Client

2. Background: Contains recitals explaining the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the asset manager and overview of services scope

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Asset Manager's Services: Detailed description of core services including property management, financial management, and reporting obligations

7. Standard of Care: Establishes the expected level of professional service and duty of care

8. Fees and Expenses: Structure of management fees, performance fees, and reimbursable expenses

9. Reporting Requirements: Regular reporting obligations including financial statements, performance reports, and other required documentation

10. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

11. Confidentiality: Protection of confidential information and trade secrets

12. Representations and Warranties: Basic assertions about capacity and authority to enter agreement

13. General Provisions: Standard boilerplate clauses including notices, assignment, governing law

What sections are optional to include in a Asset Management Agreement (Real Estate)?

1. Environmental Matters: Include when properties involve significant environmental risks or compliance requirements

2. Development Services: Add when asset manager will handle property development or major renovations

3. Capital Expenditure: Include for agreements involving significant capital improvement programs

4. Key Personnel: Add when specific individuals are crucial to service delivery

5. Portfolio Management: Include when managing multiple properties under single agreement

6. Compliance with Specific Regulations: Add sections for specific regulatory regimes applicable to certain property types

7. Foreign Investment Provisions: Include for international clients or cross-border properties

8. Conflict Resolution: Add detailed dispute resolution procedures for complex relationships

9. Force Majeure: Include detailed force majeure provisions for high-risk areas or critical properties

What schedules should be included in a Asset Management Agreement (Real Estate)?

1. Schedule A - Property Details: Detailed description of managed properties including legal descriptions and addresses

2. Schedule B - Services Description: Comprehensive list of services with detailed scope and exclusions

3. Schedule C - Fee Schedule: Detailed breakdown of all fees, including calculation methods and payment terms

4. Schedule D - Performance Metrics: Key performance indicators and measurement criteria

5. Schedule E - Reporting Requirements: Ƶ and specifications for required reports

6. Schedule F - Insurance Requirements: Detailed insurance specifications including coverage types and limits

7. Schedule G - Authorized Representatives: List of key contacts and their authority levels

8. Appendix 1 - Operating Procedures: Standard operating procedures for property management

9. Appendix 2 - Emergency Protocols: Emergency response procedures and contact information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions














































Clauses









































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Property Development

Investment Management

Financial Services

Property Management

Asset Management

Facilities Management

Relevant Teams

Legal

Asset Management

Property Management

Operations

Investment

Risk Management

Compliance

Finance

Real Estate

Facilities Management

Portfolio Management

Due Diligence

Acquisitions

Property Development

Relevant Roles

Asset Manager

Property Manager

Real Estate Portfolio Manager

Chief Investment Officer

Investment Director

Real Estate Director

Facilities Manager

Operations Manager

Legal Counsel

Compliance Officer

Risk Manager

Portfolio Analyst

Real Estate Analyst

Investment Manager

Chief Financial Officer

Property Operations Director

Asset Management Director

Real Estate Investment Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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