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Real Estate Operating Agreement Template for Philippines

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Real Estate Operating Agreement

"I need a Real Estate Operating Agreement for a 20-story commercial building in Manila CBD, where our company will appoint ABC Property Management Corp as the operator starting March 1, 2025, with special focus on sustainability requirements and green building certifications."

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What is a Real Estate Operating Agreement?

The Real Estate Operating Agreement serves as a critical document in Philippine property management, establishing the legal and operational framework for professional property operation. It is commonly used when property owners seek to delegate day-to-day management responsibilities to specialized operators while maintaining ownership rights. The agreement must comply with Philippine legislation, including the Real Estate Service Act of 2009, the Civil Code, and local government regulations. This document typically includes detailed provisions for operational standards, financial arrangements, compliance requirements, and risk allocation, making it essential for commercial, residential, and mixed-use properties. The agreement is particularly relevant in the context of Philippines' growing real estate sector, where professional property management is increasingly important for maintaining asset value and ensuring regulatory compliance.

What sections should be included in a Real Estate Operating Agreement?

1. Parties: Identifies the property owner and operator, including their complete legal names and addresses

2. Background: Explains the context of the agreement, including property details and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Specifies the operator's appointment, duration of the agreement, and any renewal terms

5. Property Description: Detailed description of the property subject to the operating agreement

6. Operator's Rights and Obligations: Comprehensive list of the operator's responsibilities, including maintenance, staffing, and reporting

7. Owner's Rights and Obligations: Details the owner's ongoing responsibilities and rights regarding the property

8. Operating Standards: Specifies the standards and quality levels required in property operation

9. Financial Terms: Details all financial arrangements including fees, expense allocation, and payment terms

10. Insurance and Liability: Specifies required insurance coverage and allocation of risks

11. Compliance and Permits: Requirements for maintaining legal compliance and necessary permits

12. Default and Remedies: Defines events of default and available remedies

13. Termination: Conditions and procedures for agreement termination

14. Dispute Resolution: Procedures for resolving disputes between parties

15. General Provisions: Standard legal provisions including notices, amendments, and governing law

What sections are optional to include in a Real Estate Operating Agreement?

1. Environmental Compliance: Required for properties with significant environmental impact or requirements

2. Staff and Employment: Needed when the operator will employ staff directly

3. Marketing and Branding: Include when the operator has responsibilities for property marketing

4. Capital Improvements: Required when the operator has authority to make capital improvements

5. Emergency Procedures: Important for properties with specific safety requirements or high-risk operations

6. Exclusive Rights: Include when granting exclusive operating rights in a specific area

7. Third-Party Contracts: Need when operator can enter into contracts with third parties

8. Asset Management: Include for properties requiring specific asset management provisions

What schedules should be included in a Real Estate Operating Agreement?

1. Property Details: Detailed description of the property including plans and specifications

2. Operating Budget: Annual operating budget and financial projections

3. Fee Schedule: Detailed breakdown of all fees and charges

4. Performance Standards: Specific metrics and standards for evaluating operator performance

5. Maintenance Schedule: Regular maintenance requirements and schedules

6. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

7. Initial Inventory: Inventory of furniture, fixtures, and equipment if included

8. Required Permits: List of all required permits and licenses

9. Key Personnel: Details of key management positions and requirements

10. Service Level Agreements: Specific service standards and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions














































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Relevant Industries

Real Estate

Commercial Property

Retail

Hospitality

Industrial

Mixed-Use Development

Office Space

Residential Property

Shopping Centers

Logistics

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Real Estate

Operations

Property Management

Asset Management

Facilities Management

Compliance

Finance

Risk Management

Business Development

Property Services

Building Operations

Relevant Roles

Property Manager

Facility Manager

Real Estate Director

Asset Manager

Operations Manager

Legal Counsel

Chief Operating Officer

Real Estate Investment Manager

Property Services Director

Compliance Officer

Financial Controller

Building Manager

Real Estate Portfolio Manager

Property Operations Supervisor

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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