Servicing; Property Management Clause Samples
The 'Servicing; Property Management' clause defines the responsibilities and authority of a party—typically a property manager or servicer—in overseeing the day-to-day operations, maintenance, and administration of a property. This clause outlines the scope of services to be provided, such as collecting rents, handling repairs, managing tenant relations, and ensuring compliance with relevant laws and regulations. By clearly delineating these duties, the clause ensures that property management is handled efficiently and that both owners and tenants understand who is accountable for various aspects of property upkeep and administration.
Servicing; Property Management. No Seller Party shall cause the Mortgage Loans or Contributed Assets to be serviced by any servicer or property manager, as applicable, other than a servicer or property manager, as applicable, expressly approved in writing by Buyer, which approval shall be deemed granted by Buyer with respect to Servicer and Property Manager, as applicable, with the execution of this Agreement.
Servicing; Property Management. (a) Seller Parties, on Buyer’s behalf, shall contract with Servicer to, or if a Seller is the Servicer, such Seller shall service the Purchased Mortgage Loans and Underlying REO Property consistent with the degree of skill and care that such Seller customarily requires with respect to similar Purchased Mortgage Loans and Underlying REO Property owned or managed by it and in accordance with Accepted Servicing Practices. The Servicer shall (i) comply with all applicable Federal, State and local laws and regulations, (ii) maintain all state and federal licenses necessary for it to perform its servicing responsibilities hereunder and (iii) not impair the rights of Buyer in any Purchased Mortgage Loans or Underlying REO Property or any payment thereunder. Buyer may terminate the servicing of any Purchased Mortgage Loan or Underlying REO Property with the then existing servicer in accordance with Section 17(e) hereof.
(b) Seller Parties shall cause the Servicer to hold or cause to be held all escrow funds collected by Seller Parties with respect to any Purchased Mortgage Loans or Underlying REO Property in trust accounts and shall apply the same for the purposes for which such funds were collected.
(c) Seller Parties shall cause the Servicer to deposit all collections received by Seller Parties on account of the Purchased Mortgage Loans and Underlying REO Property in the Collection Account or the applicable Certificate Distribution Account, as applicable, no later than two Business Days following receipt.
(d) Seller Parties shall provide promptly to Buyer a Servicer Notice addressed to and agreed to by the Servicer of the related Purchased Mortgage Loans and Underlying REO Property, advising such Servicer of such matters as Buyer may reasonably request, including, without limitation, recognition by the Servicer of Buyer’s interest in such Purchased Mortgage Loans and Underlying REO Property and the Servicer’s agreement that upon receipt of notice of an Event of Default from Buyer, it will follow the instructions of Buyer with respect to the Purchased Mortgage Loans and Underlying REO Property and any related Income with respect thereto.
(e) Upon the occurrence of an Event of Default hereunder or a Servicing Termination Event, Buyer shall have the right to immediately terminate the Servicer’s right to service the Purchased Mortgage Loans and Underlying REO Property without payment of any penalty or termination fee. Sellers shall cooperate in transferring the serv...
Servicing; Property Management