Is an Assignment of Management needed?
GoDocs standard language in sections D.6(e) and D.11 of the GoDocs loan agreement discuss that (a) the borrower shall provide for professional management by a residential property manager satisfactory to the Lender and approved by the Lender in writing and (b) inspection requirements. GoDocs does have an option to include a separate document called the Assignment of Management Agreement. The only time we believe Lender would need the Assignment of Management Agreement is if the borrower is not managing the property and there is a 3rd party manager with an existing management agreement in place. Otherwise, this document is not needed. 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.