Management Agency Agreement-prevent indemnity claim by the landlord to the R/E

[THEGREAT888]

HI Members

What a nice sunny saturday...

I am preparing a new MANAGEMENT AGENCY AGREEMENT with my local R/E Agent.

He gave me a draft contract which allows him to get away from any claim, suits actions costs and expenses if any was made against his r/e in the course of or arising out of the proper performance or excess of powers duties or authorities of the agent.

Is this norm to any new management agreement?

Your assistance is appreciated

t

 

[Scott No Mates]

Excluding your statutory rights to sue for their incompetence? I like that one - get the licensee to explain it to you and if they cannot strike it out.

 

[THEGREAT888]

Excluding your statutory rights to sue for their incompetence? I like that one - get the licensee to explain it to you and if they cannot strike it out.

Hi Scott

This is what was quoted on the contract
"The principal undertakes to indemnify and keep indemnified the Agent against all actions, suits, proceedings, claims, demands, costs and expenses whatever which may be taken of made against the Agent in the course of or arising out of the proper performance or excess of the powers duties or authorities of the agent under this agreement."

So I am guessing this is not a regular or reasonable clause on a management agency contract?

t

 

[mattysavager]

In QLD, the management agreement is done via a form produced by the QLD office of Fair Trading and is not negotiable.

The clause you referred to is in the government forms in QLD - so it's normal for us.

I understand that in NSW there is more scope to alter the terms and conditions - but that clause is fairly standard. It mostly serves to protect the agent from claims made by tenants, tradespeople etc for decisions made on the owners instructions.

You are still able to pursue the agent if they have acted negligently or against your instructions.

 

[Terry_w]

Hi Scott

This is what was quoted on the contract
"The principal undertakes to indemnify and keep indemnified the Agent against all actions, suits, proceedings, claims, demands, costs and expenses whatever which may be taken of made against the Agent in the course of or arising out of the proper performance or excess of the powers duties or authorities of the agent under this agreement."

So I am guessing this is not a regular or reasonable clause on a management agency contract?

t

Sounds reasonable to me. They are acting as your agent and so should be indemnified for any action that results in them performing this role. ie they are acting on your behalf.

 

[Nibbles55]

I have also struck this clause in some agency agreements I have been given. The key word here is "the PROPER performance", which means they can't expect to act IMproperly and still be indemnified. I'm not sure what to make of the phrase "EXCESS of the powers, etc" though, as it suggests they could do more than you asked of them. (I am no legal expert but mother of a law student who's learning how to decipher the small print).