What is an Assignment of Management Agreement?

An Assignment of Management Agreement allows the Borrower to transfer its rights under the property management agreement to Lender.

An Assignment of Management Agreement allows the Borrower to transfer its rights under the property management agreement to Lender. Upon the occurrence of an Event of Default, the Lender is able to enforce Borrower's rights under the property management agreement, ensuring the property is still managed during and after the foreclosure process. Typically, this also allows the Lender to terminate the agreement in the Event of Default if the property manager is a related party.

Under the Property Tab scroll down to Assignment of Management Agreement and click “Yes” and fill in the below-needed information.

Complete the open data fields with the information for the Management Company paying attention to the checkbox for “Is Management Company a Related Entity (Include Subordination Language)?”

The difference in whether that box is checked is shown below:

By selecting "Yes" to "Language Only?" for the Assignment of Management Agreement data field, the documents will not include a separate assignment of management agreement document and instead include a provision in the Preservation, Management and Maintenance of Mortgaged Property section of the loan agreement.

The attached screenshot is an example of the output given the particulars of the loan.