What is RPM's liability in relation to the Management of the property?

Summary

Liability: RPM will use all reasonable efforts to screen prospective Tenants and protect the property, but RPM is generally not liable for the action or inaction of the occupants of the property.

Indemnity: The property owner indemnifies RPM from any liability for any loss or damage, from any cause whatsoever, to Owner's real or personal property, except for loss or damage caused by Manager's sole gross negligence, recklessness or willful misconduct of Manager's employees. Manager shall under no circumstances have any liability greater than the amount of commissions paid to Manager by Owner, in the last twelve months.

EXAMPLE Property Management Agreement Language #1

LIABILITY AND INDEMNIFICATION: The Owner agrees to comply with all obligations, duties, and responsibilities under California Property Code, fair housing laws, local ordinances applicable to the use, leasing and management and care of the property. Agent is not responsible or liable in any manner for personal injury to any person or for loss or damage to any person’s real or personal property resulting from any act or omission not caused by Agent’s gross negligence, including but not limited to injuries or damages caused by: other Brokers or their associates, contractors, vendors or appraisers authorized to access the property; acts of vandalism or theft or criminal acts; freezing or leaking pipes; a dangerous condition or environmental condition of the Property; or the Property’s non-compliance with any laws or ordinances. Agent is not responsible or liable in any manner for damages to the Owner caused by a Tenant’s breach of a lease. The Owner agrees to protect, defend, indemnify, and hold Agent harmless from any damage, costs, attorney fees, and expenses that: are caused by the Owner, negligently or otherwise; arise from the Owners failure to disclose any material or relevant information about the Property; are caused by the Owner giving incorrect information to any person; are related to the management of the Property and are not caused by Agent, negligently or otherwise. If the Owner or Agent is a prevailing party in any legal proceeding brought as a result of a dispute under this agreement or any transaction related to or contemplated by this agreement, such party will be entitled to recover from the non-prevailing party, reasonable expenses and attorney fees. Agent shall under no circumstances have any liability greater than the amount of commissions paid to Manager by Owner, in the last twelve months. The Owner agrees indemnification survives termination of contract.

EXAMPLE Property Management Agreement Language #2

Indemnity. (a) Owner hereby releases and discharges Manager from any liability for any loss or damage, from any cause whatsoever, to Owner's real or personal property, except for loss or damage caused by Manager's sole gross negligence, recklessness or willful misconduct of Manager's employees. Owner hereby covenants and agrees to indemnify, defend and hold and save Manager harmless from and against all liabilities, damages, claims, actions, causes of action, costs and expenses or failure to perform such duties and responsibilities, whether such duties and responsibilities will be express or implied, other than as a result of willful misconduct, recklessness or sole gross negligence of Manager. Manager shall under no circumstances have any liability greater than the amount of commissions paid to Manager by Owner, in the last twelve months. (b) Owner acknowledges that Manager has made no inducements or representations other than those contained in this Agreement. Owner acknowledges and agrees that any oral or written statements by Manager or its representatives concerning the benefits or risks of owning or renting, or employing Manager to manage the Property or similar residential property, does not constitute inducements, warranties or representations. Owner covenants and agrees with Manager that Owner has not purchased, or will not purchase the Property in reliance upon any such statements. Manager hereby disclaims any guarantee, representation, warranty or covenant including but not limited to: 1.) that income will be realized from the Property: 2.) that income realized from the Property will exceed expenses attributable to the Property, or 3.) that any amount due and payable to the Owner by any third party shall be paid when due. (c) Owner acknowledges and agrees that Manager is engaged in the business of renting and managing residential property. In the event that Manager is attempting to rent the Property at the same time that it is attempting to rent any other residential property, conflicts of interest may arise between the Owner and the owners of such other residential property. Manager agrees to use its best efforts to treat Owner, and the owner of each other residential property managed by Manager, in a substantially equitable manner to be determined by Manager in the circumstances. Nothing contained in this Agreement shall be construed to constitute a promise or guarantee by Manager to equalize the occupancy rates or the amount of income received from the rental of any particular residential property.