Is an electronic signature valid?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are legally equivalent to handwritten signatures for most contracts, provided intent, consent, attribution, and reliable record retention are satisfied. Exceptions like wills may apply.

Do I need a notary or witnesses?

It depends on governing state law and document purpose. Most Management Use Agreements do not require notarization for enforceability, but certain instruments (deeds, powers of attorney) or local recordation rules may. Check state requirements and add notarization when required.

How do I e-sign securely?

Use an e-signature solution that provides audit trails, signer authentication (email, SMS, or stronger methods), tamper-evident documents, and secure storage. For health data, ensure a signed BAA and HIPAA-compliant workflows. Maintain copies and audit records for disputes.

What happens on termination?

The agreement should specify wind-down tasks, final accounting deadlines, transfer of records, and client notification responsibilities. Retain final reports according to retention schedule and provide any transitional support defined in the contract to avoid operational disruption and disputes.

How long must I keep these records?

Follow federal minima: IRS financial records generally three years (IRC §6501(a)); HIPAA-related records six years (45 CFR §164.530(j)). For property-related or fiduciary documents, many organizations retain records seven to ten years or longer depending on state rules.

Can I change the agreement after signing?

Yes, by mutual written amendment. The agreement should describe amendment procedures, required approvals, and effective dates for changes. For electronic records, record both versions and retain amendment evidence; follow ESIGN's retention and consumer consent requirements when changes affect rights.

Electronic Signature
Templates
Miscellaneous
Management Use Agreement

Management Use Agreement

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MANAGEMENT USE AGREEMENT

Parties

This Management Use Agreement ("Agreement") is entered into between the parties identified below for the purpose of granting specified management use rights and defining the parties' respective obligations.

Owner Name: Owner Address: Manager Name: Manager Address:

Recitals

WHEREAS, Owner is the lawful owner of the property, assets, equipment, and/or business operations described as:

WHEREAS, Manager possesses experience and capacity to manage, operate, and use the foregoing for business purposes and related management functions;

WHEREAS, the parties desire to set forth the terms under which Manager may use the specified assets and perform management services for Owner, and to allocate responsibilities, compensation, and liabilities.

Scope of Work

Manager shall perform the following services and activities within the scope of this Agreement. Manager's duties shall include the tasks, standards, and reporting obligations specified below.

Payment Terms

Owner agrees to pay Manager the consideration described below in exchange for Manager's performance of services and use of the assets.

Compensation Amount: Payment Schedule: Payment Due Day Each Period:

Late payments shall incur a fee equal to the greater of the stated late fee or applicable maximum legal rate. The parties agree the late fee shall be:

Late Fee (percentage per month): Late Fee Applies After (days):

Invoices submitted by Manager are due on receipt unless otherwise specified above. Owner shall provide notice of disputed invoiced amounts within ten (10) days of receipt; undisputed amounts remain payable in accordance with this Agreement.

Term and Termination

This Agreement commences on the Start Date and continues until the End Date, unless earlier terminated as provided below.

Start Date: End Date:

Either party may terminate this Agreement for convenience upon written notice to the other party delivered no fewer than:

Notice Period (days):

In addition to termination for convenience, either party may terminate immediately for material breach, insolvency, unauthorized use of confidential information, or conduct that poses a material risk to persons or property. Upon termination Manager shall deliver a final accounting, return all Owner property, and provide reasonable assistance for transition of management functions.

Confidentiality

Definition. "Confidential Information" means all non-public business, financial, technical, operational, marketing, and customer information disclosed by one party ("Discloser") to the other ("Recipient"), whether oral, written, or electronic, that is designated as confidential or that a reasonable person would understand to be confidential given the nature of the information and the circumstances of disclosure.

Obligations. Recipient shall (a) hold Confidential Information in strict confidence using at least the same care it uses to protect its own confidential information, but in no event less than reasonable care; (b) use Confidential Information solely to perform its obligations under this Agreement; and (c) not disclose Confidential Information to third parties except to employees, contractors, or advisors who have a need to know and are bound by confidentiality obligations at least as protective as those herein.

Exclusions. Confidential Information does not include information that (i) is or becomes publicly available through no breach of this Agreement; (ii) was rightfully known to Recipient prior to disclosure; (iii) is rightfully obtained by Recipient from a third party without restriction; or (iv) is independently developed by Recipient without reference to Discloser's Confidential Information.

Remedies. The parties acknowledge that monetary damages may be inadequate to remedy a breach of this Section and that Discloser shall be entitled to seek injunctive relief, in addition to any other remedies available at law or in equity. Confidentiality obligations survive termination for a period of three (3) years, except for trade secrets which shall remain protected for as long as they qualify as trade secrets under applicable law.

Insurance and Indemnification

Manager shall maintain insurance customary for the scope of services provided, including general liability and, if applicable, professional liability. Manager shall indemnify, defend, and hold harmless Owner from and against any claims, losses, liabilities, or expenses arising from Manager's negligence, willful misconduct, or material breach of this Agreement, except to the extent caused by Owner's negligence or willful misconduct.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflicts of law principles. The parties submit to the exclusive jurisdiction of the courts located in that State for any dispute arising out of or relating to this Agreement.

Entire Agreement; Amendments

This Agreement, including any attachments or exhibits executed by the parties, constitutes the complete and exclusive statement of the parties' agreement with respect to its subject matter and supersedes all prior proposals, negotiations, and agreements, whether written or oral. No amendment or modification shall be binding unless in writing and signed by both parties.

Miscellaneous Provisions

Assignment. Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party, except that Owner may assign to an affiliate or successor in interest.

Independent Contractor. Manager is an independent contractor for all purposes under this Agreement. Nothing herein creates a partnership, joint venture, or employer-employee relationship.

Notices. All notices required under this Agreement shall be in writing and delivered to the addresses provided above by personal delivery, recognized courier, or certified mail, return receipt requested, and are effective upon receipt.

Owner

Printed Name:

By:

Date:

Manager

Printed Name:

By:

Date:

What the Management Use Agreement Is

The Management Use Agreement is a written contract that authorizes a designated manager or management company to operate, maintain, and make decisions about specific property, asset, or organizational functions on behalf of an owner. It defines the scope of authority, term, compensation or fee structure, reporting requirements, and termination conditions. Typical contexts include residential or commercial property management, association administration, equipment leasing oversight, or portfolio management. The agreement clarifies responsibilities, limits liability, and creates enforceable duties between the principal and the manager under applicable state contract law and federal e-signature statutes.

Why a Management Use Agreement Matters

A Management Use Agreement establishes clear authority, expectations, and financial terms between an owner and a manager, reducing disputes and operational ambiguity. It enables consistent reporting, liability allocation, and performance standards that protect both parties and facilitate regulatory compliance, including electronic execution.

Who Typically Uses a Management Use Agreement

Property owners, landlords, homeowners associations, and professional management firms use this agreement to assign operational control and reporting responsibilities.

Independent property managers overseeing maintenance, leasing, and vendor relationships for residential or commercial properties.
HOA or condo association boards delegating day-to-day administration, financial management, and covenant enforcement.
Owners of equipment, vehicles, or portfolios appointing managers to handle operations, compliance, and reporting.

Use this agreement when delegating recurring operational tasks or when formalizing manager compensation, liability, and performance metrics.

Core provisions included in a Management Use Agreement

A comprehensive Management Use Agreement organizes responsibilities, authority limits, compensation, reporting, indemnities, and termination terms into clear, enforceable contract clauses for effective governance.

Scope of Authority

Defines specific duties the manager may perform, decision-making thresholds, permitted expenditures, and limits on hiring, leasing, or capital improvements without owner approval, including emergency spending caps and vendor selection protocols.

Term & Renewal

Specifies the agreement start date, initial term length, auto-renewal or renewal notice periods, conditions for extension, and procedures to renegotiate fees or scope before renewal.

Compensation & Fees

Sets the manager's base fee, performance-based incentives, expense reimbursement rules, timing of payments, audit rights, and procedures for adjusting fees tied to CPI or agreed indices.

Reporting Requirements

Details required financial reports, frequency of statements, supporting documentation, access to accounting records, formats for delivery, and timelines for owner review and dispute of reported figures.

Liability & Indemnity

Allocates responsibility for negligence, breach, or third-party claims; sets indemnification scope, insurance requirements, caps on damages, and procedures for defending claims and seeking restitution and loss mitigation.

Termination & Transition

Specifies termination for convenience or cause, notice periods, wind-down responsibilities, transfer of records, final accounting, and obligations for transitional support or exit fees, including client notification duties.

Step-by-step: completing a Management Use Agreement

Follow these sequential steps to prepare, review, sign, and implement the Management Use Agreement reliably and in compliance with applicable laws.

01

Gather documents: Collect ownership proofs, entity documents, and manager credentials.
02

Draft terms: Define scope, fees, reporting, and liability limits.
03

Review & negotiate: Owner and manager review, revise, and agree on clauses.
04

Execute & record: Sign, notarize if required, distribute copies, and store.

Routing and submission options for the executed agreement

After execution, route the agreement to the owner, manager, and any regulatory or third-party stakeholders; confirm receipt and preserve a signed PDF copy.

Owner copy: Provide fully signed copy to the owner.
Manager copy: Manager retains an executed copy and schedule.
Accountant / Auditor: Send financial exhibits to accounting or auditor.
Registrar / Regulator: File with regulator if contract requires public filing.

Configuring an online Management Use Agreement workflow

Set up fields, signer order, authentication, reminders, and storage retention when preparing the agreement for electronic completion and signature.

Field	Configuration
Signer Authentication	Email or SMS code; use 2FA for higher assurance
Signer Order	Specify sequential or parallel signing
Conditional Fields	Show fields only when criteria met
Retention & Export	Auto-save PDF to cloud and set retention

Technology and integration considerations

Ensure the eSignature platform supports PDF/DOCX uploads, field mapping, and audit trails before sending for signature.

File formats: PDF and Word DOCX supported
Integrations: CRM, cloud storage, and ERP connectors
Security: TLS in transit; AES-256 at rest

Key deadlines and processing expectations

Timelines vary by negotiation and governing law; set clear notice periods, reporting deadlines, payment dates, and cure periods in the agreement to avoid disputes.

Effective date:

Manager authority begins on the effective date

Initial term:

Specify fixed months or years and renewal terms

Notice to terminate:

State required notice period for termination

Reporting schedule:

Monthly, quarterly, or annual financial statements

Payment due dates:

Specify invoice timing and late fee provisions

Milestones from negotiation to transition

Track major milestones from negotiation and execution through operation and transition to ensure obligations are met and records are preserved.

01

Negotiation complete

Finalize terms, responsibilities, and fee structure

02

Execution & notarization

Obtain signatures and notarize if required by state

03

Operational handover

Transfer records, access, and onboarding of contractors

04

Exit & final accounting

Deliver final reports, reconcile accounts, and transfer files

Essential information to collect

Owner Identity: Legal name and entity type

Manager Credentials: Licenses and insurance details

Property/Asset ID: Address or serial numbers

Banking Details: Payment account and routing

Reporting Format: Financial template and frequency

Notarization: Notary or witness required?

Risks and potential penalties

Breach liability: Damages for manager or owner breaches

Regulatory fines: Noncompliance may trigger state or federal penalties

Tax consequences: Incorrect reporting or withholding triggers penalties

Contract voidance: Material errors can void key clauses

Data breach exposure: Unauthorized disclosure of tenant or owner data

Operational disruption: Loss of service or increased costs

Common preparation mistakes to avoid

Vague scope language that allows conflicting interpretations and gives managers or owners room to dispute responsibilities and billing practices.
Missing or inconsistent compensation terms including ambiguous expense reimbursement, unclear performance incentives, and no formula for fee adjustments over time.
Failure to specify reporting format and frequency creates reconciliation delays, audit challenges, and disputes over financial accuracy.
Not addressing termination logistics, data transfer, or client notification can result in operational gaps and additional legal costs during transition.

Real-world examples of Management Use Agreements in practice

Real-world examples show how Management Use Agreements prevent disputes and clarify duties in diverse contexts.

Residential Property Manager

A landlord used a Management Use Agreement to delegate leasing, maintenance, and vendor payments to a licensed manager, reducing vacancy time and clarifying expense reimbursement.

Reduced average repair turnaround times.
The written scope prevented disputes about who authorized contractors, and the fee schedule tied manager incentives to occupancy rates. When ownership changed, clear handover clauses allowed rapid transfer of records without litigation.

HOA Management

An HOA contracted a management company to collect dues, enforce covenants, and coordinate maintenance; the agreement included audit rights and owner complaint procedures to ensure transparency.

Resolved disputes with documented procedures.
Explicit reporting schedules and a dispute resolution clause reduced board liability and sped recovery of delinquent assessments. The HOA preserved records for state-required retention and used the contract to enforce vendor performance metrics.

eSignature vendor pricing and feature comparison

Compare common pricing tiers and key feature differences among signNow and other major eSignature providers to inform procurement decisions for Management Use Agreements.

	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	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions and troubleshooting

Answers to common questions about execution, e-signature validity, notarization, and document retention for Management Use Agreements.

Need help? Contact support

Is an electronic signature valid?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are legally equivalent to handwritten signatures for most contracts, provided intent, consent, attribution, and reliable record retention are satisfied. Exceptions like wills may apply.
Do I need a notary or witnesses?
It depends on governing state law and document purpose. Most Management Use Agreements do not require notarization for enforceability, but certain instruments (deeds, powers of attorney) or local recordation rules may. Check state requirements and add notarization when required.
How do I e-sign securely?
Use an e-signature solution that provides audit trails, signer authentication (email, SMS, or stronger methods), tamper-evident documents, and secure storage. For health data, ensure a signed BAA and HIPAA-compliant workflows. Maintain copies and audit records for disputes.
What happens on termination?
The agreement should specify wind-down tasks, final accounting deadlines, transfer of records, and client notification responsibilities. Retain final reports according to retention schedule and provide any transitional support defined in the contract to avoid operational disruption and disputes.
How long must I keep these records?
Follow federal minima: IRS financial records generally three years (IRC §6501(a)); HIPAA-related records six years (45 CFR §164.530(j)). For property-related or fiduciary documents, many organizations retain records seven to ten years or longer depending on state rules.
Can I change the agreement after signing?
Yes, by mutual written amendment. The agreement should describe amendment procedures, required approvals, and effective dates for changes. For electronic records, record both versions and retain amendment evidence; follow ESIGN's retention and consumer consent requirements when changes affect rights.

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