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Management Agreement - Holiday Resort


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Introduction
Description
Use
Table of Contents

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Introduction

The holiday resort formula usually offer people the advantage of owning a second home in a tourist area of interest and the opportunity to make this investment profitable. The property purchased in that area can be integrated in a rental program managed by the developer who developed the holiday resort or by a specialized hotel manager.

The main benefit of this formula is that the owner of an housing unit of the holiday resort can reduce the cost or increase the profitability of his investment with the rental income generated by the unit, without the inconvenience of leasing the unit directly to strangers. The lease programs offered in such resorts are usually fairly complicated. This document establishes the legal and financial framework within which such services are rendered.

Description

The Management Agreement for a holiday resort is the legal instrument that recognizes the transaction by which a person, the owner, entrusts a second person, the manager, with the task of carrying out the administrative and management operations required to lease housing units owned by the owner in a residential complex.

Use

We recommend the use of this document to manage the legal relationship between parties in the situation where an owner who does not wish to occupy the unit he owns in a residential complex, wants to retain the services of a manager who will lease the unit to third parties.

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Best Effort
0.01.03 Breach
0.01.04 Change in Control
0.01.05 Client
0.01.06 Confidential Information
0.01.07 Co-ownership
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Financial Year
0.01.11 Force Majeure
0.01.12 Fundamental Provisions
0.01.13 Legal Representatives
0.01.14 Other Proprietors
0.01.15 PARTY
0.01.16 Person
0.01.17 Prime Rate
0.01.18 Proportion
0.01.19 Related Person
0.01.20 Rental Expenses
0.01.21 Subsidiary
0.01.22 Rental Income
0.01.23 Unit
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Legal Transaction
1.02 Conditions
1.02.01 Required by PROPRIETOR
1.02.02 Required by MANAGER
1.02.03 Choice
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
3.01 Deduction
3.02 Interest
3.03 Loss of Term
4.00 SECURITY
4.01 In favour of PROPRIETOR
4.02 In favour of MANAGER
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE PROPRIETOR
6.01 No Warranties
7.00 REPRESENTATIONS AND WARRANTIES OF THE MANAGER
7.01 Competence
7.02 Solvability
7.03 Other Businesses
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE PROPRIETOR
9.01 Working Capital
9.01.01 Initial Installment
9.01.02 Default
9.01.03 Income and Expense Guarantee
9.02 Reimbursement by PROPRIETOR
9.02.01 Advance
9.02.02 Interests
10.00 DUTIES AND OBLIGATIONS OF THE MANAGER
10.01 Best Effort
10.02 Duties
10.02.01 Powers
10.02.02 Major Work
10.02.03 Urgent Work
10.03 Financial Statements
10.04 Registers and Accounting Books
10.05 Access to Books and Information
10.06 Respect of Legislation
10.07 Legal Proceedings
10.08 Attribution of Rental Income and Expenses
10.09 Allocation of the Working Capital and the Rental Expenses attributed to the Unit
10.10 Rental Income and Rental Expense Guarantee
10.10.01 Awarding
10.10.02 Income
10.10.03 Expenses
10.10.04 Default
10.10.05 Discharge
10.10.06 Maximal Profit
10.10.07 Surplus
10.11 Annual Budget
10.11.01 Submittal
10.11.02 Operating Expenses
10.11.03 Initial Financial Years
10.12 Insurance Policy
10.12.01 Subscription
10.12.02 Beneficiary
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Exclusivity
11.08 Right to Vote
11.09 Management of the Bank Account
11.10 Common Management
11.11 Non-Liability
11.12 Formalities
11.13 Occupancy of the Unit by PROPRIETOR and Clients Referral
11.13.01 Waiving
11.13.02 Rental Modalities
11.13.03 Credit
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Cancellation
13.03.01 By PROPRIETOR
13.03.02 By MANAGER
13.03.03 Other recourses
13.04 Transition
13.05 Survival of the Obligations
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal Option
15.04 Survival
16.00 SCOPE
Why use our contract forms?
Civil Law Version
Updated 14-02-2009
Québec
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