GoDocs cannot provide any advice but generally what we see other customers do is when the property is managed by a 3rd party management company, it is advisable to have an assignment of management agreement (as you probably noticed there is a button to include an option to indicate if the management company is related to the borrower or not). When it is self-managed and there is not a property management company involved or a management agreement, the lender, at its discretion, can make a business decision to not require the assignment. Some key provisions in our loan agreement that I wanted to point out to you are:
- D.6(e) state that the borrower shall provide for professional management of the Mortgaged Property by a residential rental property manager satisfactory to Lender under a contract approved by Lender in writing.
- D.11- borrower shall within 5 days provide contact information for the property management company to arrange inspection of the property.