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Management Agreement

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MANAGEMENT AGREEMENT AND OPTION TO PURCHASE

THIS AGREEMENT made and entered into on this the day of , 20 , by and between (hereinafter " ") and (hereinafter " ").

NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual promises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of all of which is acknowledged, retains to manage and operate that certain business known as (the "Business") under the terms and conditions set forth below:

1. Term. agrees to retain as the General Manager of the Business for a term commencing on and continuing through unless extended or terminated in accordance with the terms of this Agreement.

2. Duties. shall manage and operate the Business for and on behalf of ; provided, however, shall only be required to devote such time and efforts as she, in sole and absolute discretion, shall deem prudent and necessary.

shall be solely responsible for the operation of the Business during the term hereof and shall not interfere in any way with 's operation and management of the Business during the term hereof.

The parties specifically agree that shall have overall responsibility for all personnel actions and shall make all daily management and operating decisions. The direction of all personnel will be done by and through .

3. Compensation. In consideration of all services to be rendered by , shall pay to the compensation during the term hereof equal to the Net Income of the Business less the sum of $ per month.

Net Income shall be calculated monthly and shall provide with a written summary of his/her calculation of Net Income within five (5) working days after the last day of the calendar month.

At the same time that delivers his/her summary calculation of Net Income, shall also deliver to a check for the sum of Dollars ($ ).

4. Repairs. agrees that within fourteen (14) days of the execution of this Agreement he will, at his/her sole cost and expense, repair or replace those items listed by the state health department as being deficient.

5. Termination. may terminate this Agreement, at will, and in his/her sole discretion upon seven (7) days written notice to the .

6. Option to Purchase. hereby grants to the option and right to buy all of the assets of the Business.

(a) This option shall remain in effect until and shall thereupon expire, unless this option is sooner exercised.

(b) To exercise this option, must notify of his/her intention to purchase the Assets by certified mail within the option period.

(c) Upon exercise of the option, and agree that this agreement shall become a contract to purchase.

(i) The purchase price shall be Dollars ($ ), and shall be paid in cash or by cashiers check at Closing.

(ii) In connection with the purchase of the Assets, will not assume any liabilities of .

(iii) Except as provided herein below, all Assets will be transferred "as is".

(iv) During the period from the date of this Agreement until the Closing, and his/her representative shall have access to all facilities, equipment, buildings, personnel, computers, books and records of relating to the Business and to the Real Property.

(v) The parties' respective counsel will prepare an appropriate purchase agreement and other appropriate documents. The Purchase Agreement will contain:

(vi) Closing shall occur not later than thirty (30) days after exercise of the option, unless extended in writing by mutual agreement of the parties.

(vii) At Closing, shall provide with a Certificate of Title regarding the real property.

(viii) Taxes shall be prorated as of the date of Closing.

(ix) reserves the right to make the purchase herein contemplated through a subsidiary of .

7. Exclusive Negotiating Rights. In consideration of the expenditures of time, effort and expense by in connection management of the Business and his/her contemplated purchase of the Business, agrees that he will not enter into or conduct any discussions with any other prospective purchaser.

8. Extension. shall have option to extend this Agreement, including the Option to Purchase, for an additional term of six (6) months by giving at least fourteen (14) days written notice prior to the expiration of the initial term.

9. Miscellaneous Provisions.

(a) The provisions of this Agreement shall be binding upon and inured to the benefit of the heirs, personal representatives, successors and assigns of the parties.

(b) Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be mailed by certified mail, return receipt requested, postage prepaid, addressed to the parties as follows:

All notices and communications shall be deemed given at the expiration of three (3) days after the date of mailing.

(c) In the event of a default under this Agreement, the defaulted party shall reimburse the non-defaulting party or parties for all costs and expenses reasonably incurred.

(d) No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision.

(e) This Agreement shall be governed by and shall be construed in accordance with the laws of the State of .

(f) This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements.

WITNESS OUR SIGNATURES, this the day of , 20 .

 

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What a Management Agreement Is and When It Applies

A Management Agreement is a written contract that assigns operational, financial, and administrative duties from an owner or principal to a manager. Typical uses include property management, asset administration, and third-party vendor oversight. The agreement outlines scope of services, decision-making authority, compensation and expense reimbursement, term and renewal rules, reporting requirements, insurance and indemnity allocations, and termination procedures. Well-drafted agreements reduce disputes by setting performance standards and amendment processes; some jurisdictions also require notarization or witness signatures for enforceability in certain contexts.

Why a Management Agreement Matters for Risk and Operations

A Management Agreement clarifies responsibilities, limits liability, and records compensation and authority. It protects owners and managers by documenting insurance, indemnities, termination processes, and reporting obligations, supporting compliance with state law and industry standards.

Why a Management Agreement Matters for Risk and Operations

Who Typically Completes a Management Agreement

Management Agreements are completed by parties entering a management relationship, including property owners and professional managers.

  • Owners of commercial or residential properties that delegate day-to-day operations and financial management.
  • Licensed management companies handling leasing, maintenance, vendor contracts, and tenant relations for multiple properties.
  • Real estate investors, REIT administrators, or institutional asset managers seeking standardized oversight and reporting.

Use the agreement to set measurable performance metrics, payment terms, and termination rights before operations begin.

Representative Signers and Their Roles

Owner — Small Portfolio

Individual or family‑office owners of a handful of rental units who need clear fee schedules, maintenance thresholds, and monthly reporting. They typically reserve approval for capital expenditures, require financial statements for tax filing, and expect explicit dispute resolution and indemnity provisions.

Managing Company — Regional

Professional managers operating multiple properties who require delegated authority for leasing and vendor selection, defined reimbursement policies, indemnification language, and performance benchmarks such as occupancy and maintenance SLA metrics.

Compliance and Security Considerations to Include

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.
Certifications: SOC 2 Type II and ISO 27001 available.
eSignature Law: ESIGN and UETA compliant.
Healthcare: HIPAA support; BAA required.
FDA Records: 21 CFR Part 11 support available.
Accessibility: WCAG 2.0 Level AA conformance.

Step-by-Step: Completing the Management Agreement

Follow these steps to prepare and execute a clear, enforceable Management Agreement for property or asset management.

  • 01
    Gather parties: Identify owner, manager, and legal entities.
  • 02
    Define scope: List services, exclusions, and decision limits.
  • 03
    Set fees: Specify base fees, reimbursements, and payment schedule.
  • 04
    Sign and retain: Execute signatures, notarize if required, and store securely.

Setting Up an Online Execution Workflow

Configure the online workflow to control signer order, authentication, reminders, and storage before sending the agreement.

Field Configuration
Signature Order Sequential or parallel signer order selection.
Authentication Method Email link, SMS code, or KBA as needed.
Reminder Schedule Auto-reminders and expiry notifications setup.
Storage Location Specify cloud folder or document repository.

How to Send, Sign, and Distribute the Agreement

A clear signing flow reduces friction: upload, prepare, deliver, sign, and archive with an audit trail.

  • Upload Document: Import PDF or DOCX into the platform.
  • Place Fields: Add signature, date, and initial fields.
  • Deliver Link: Send signer emails or share signing link.
  • Store Copy: Save signed PDF plus certificate of completion.

Distribution Channels and Integration Options

Choose delivery and storage methods that match your tech stack and compliance needs.

  • Email Delivery: Standard signer email notifications.
  • Cloud Storage: Integrates with Box, Google Drive, and NetSuite.
  • CRM Integration: Connectors available for Salesforce and Microsoft 365.

Use integrations to automate routing and archival; ensure the chosen platform supports required authentication and retention controls.

Key Dates and Notice Periods to Include

Specify execution dates, initial term, renewal timing, and termination notice periods to avoid disputes and missed deadlines.

Effective Date:

Date when manager duties and obligations commence.

Signature Execution:

Date each party signs, used for service and timing calculations.

Initial Term Start:

Begin date and length of the initial contracted term.

Renewal Notice:

Number of days required to provide renewal or nonrenewal notice.

Termination Notice:

Days of notice required for termination without cause.

Common Preparation Mistakes to Avoid

  • Using vague scope language that leaves critical responsibilities ambiguous or disputed later.
  • Failing to confirm authorized signers or corporate signing authority before execution.
  • Omitting insurance and indemnity clauses or not specifying minimum coverages and policy types.
  • Neglecting to include clear billing and reimbursement procedures, causing later accounting conflicts.

Consequences of Errors or Missing Elements

Incorrect Tax Forms: Penalties under IRC §6721 apply.
I-9 Failures: Fines ranging $281–$2,789 per violation.
Mismatched Names: Banking and enforcement delays.
Missing Notarization: Possible rejection in court or title matters.
Unauthorized Delegation: Void or unenforceable authority clauses.
Data Breach: Regulatory fines and remediation costs.

Common eSignature Pricing and Feature Comparison for Agreement Execution

Compare per-user pricing and core capabilities when selecting an eSignature provider to execute Management Agreements at scale.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Verify Verify Verify

Real-World Examples: Management Agreements in Action

These examples illustrate common outcomes when organizations adopt digitally enabled Management Agreements.

Martin Properties

Martin Properties centralized landlord obligations across multiple portfolios to reduce execution time.

  • Adopted e-signature workflows for remote execution.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Fertility Centers

A healthcare provider standardized management agreements to control vendor access and record handling.

  • Added HIPAA addenda and audit logs.
  • "The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company."

Frequently Asked Questions About Management Agreements

Answers to common legal, execution, and storage questions about Management Agreements and electronic execution options.


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