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Real Estate Operating Agreement
"I need a Real Estate Operating Agreement for a newly constructed shopping mall in Kuala Lumpur, where a professional operator will manage all aspects of the property starting from March 2025, with particular emphasis on retail tenant management and marketing activities."
1. Parties: Identification of the property owner and the operator, including their full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, property details, and purpose of the operating arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Appointment and Term: Formal appointment of the operator, duration of the agreement, and renewal terms
5. Property Details: Comprehensive description of the property, including legal description and permitted uses
6. Operator's Rights and Obligations: Detailed responsibilities of the operator in managing and operating the property
7. Owner's Rights and Obligations: Responsibilities and obligations of the property owner
8. Financial Terms: Management fees, operating expenses, revenue sharing, and financial reporting requirements
9. Operating Standards: Required standards of operation, maintenance, and service delivery
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Termination: Grounds for termination, notice requirements, and consequences of termination
12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
13. General Provisions: Standard contractual provisions including notices, amendments, and assignment rights
1. Environmental Compliance: Required when the property has specific environmental considerations or requirements
2. Staff and Employment: Needed when the operator will be managing on-site staff or taking over existing employees
3. Marketing and Branding: Include when the operator has responsibilities for marketing the property or maintaining brand standards
4. Capital Improvements: Required when the operator has authority to make or recommend capital improvements
5. Competitive Restrictions: Include when there are non-compete or territorial restrictions on either party
6. Force Majeure: Particularly relevant for properties in areas prone to natural disasters or specific risk factors
7. Intellectual Property: Required when the operation involves use of proprietary systems, brands, or methods
1. Property Description Schedule: Detailed legal and physical description of the property, including floor plans and boundaries
2. Services Schedule: Comprehensive list of operational services to be provided by the operator
3. Fee Schedule: Detailed breakdown of all fees, charges, and financial arrangements
4. Key Performance Indicators: Metrics and standards for measuring operator's performance
5. Inventory Schedule: List of furniture, fixtures, and equipment included in the operation
6. Insurance Requirements: Detailed specifications of required insurance coverage
7. Operating Procedures Manual: Standard operating procedures and guidelines
8. Handover Protocol: Procedures for property handover at commencement and termination
9. Reporting Templates: Standard formats for financial and operational reporting
Authors
Commercial Real Estate
Residential Property
Retail Property
Industrial Property
Mixed-Use Development
Hospitality
Office Space
Shopping Centers
Logistics Facilities
Healthcare Facilities
Educational Facilities
Data Centers
Legal
Operations
Property Management
Asset Management
Facilities Management
Compliance
Finance
Real Estate
Contract Administration
Risk Management
Business Development
Property Manager
Real Estate Operations Director
Asset Manager
Facilities Manager
Legal Counsel
Real Estate Investment Manager
Operations Manager
Property Development Manager
Contract Administrator
Chief Operating Officer
Real Estate Portfolio Manager
Building Manager
Compliance Officer
Financial Controller
Property Services Director
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