Section 112

Property Management and Agreement

112.01

Property Management

Requirements

You must ensure the Property'sProperty'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management team is adequate.

 Guidance

An independent, professional PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management company is not required.  However, when analyzing PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management, you should consider if the management team:

  • has adequate experience to ensure effective PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code).
    • administration,
    • leasing,
    • marketing, and
    • maintenance; and
  • is staffed appropriately for the
    • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). type and size, and
    • services provided.
112.02

Property Management Agreement

Requirements

If the BorrowerBorrowerPerson who is the obligor per the Note. is not the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). manager, you must ensure the:

  • BorrowerBorrowerPerson who is the obligor per the Note. has a written management agreement with a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management company allowing LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans.  cancellation without penalty or prior notice in case of a BorrowerBorrowerPerson who is the obligor per the Note. default per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or
  • BorrowerBorrowerPerson who is the obligor per the Note. and PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). manager complete the Assignment of Management Agreement (Form 6405). 

Guidance

You should ensure the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management agreement clearly states the

  • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). manager's responsibilities, and
  • amount of the management fee (or fee determination methodology).