What is an asset management agreement and when to use it

An asset management agreement is a contract where the manager administers property on behalf of the owner, acting in their own name, but for the benefit of the owner.

Common use cases:

• managing rental properties

• handling bank accounts or shares

• managing family assets for elderly relatives

• technical or financial property management for businesses

Legal framework

Regulated by Sections 1400–1447 of the Czech Civil Code.
Key features:

• manager acts in their own name,

• property must be kept separate from manager’s assets,

• manager must report and account regularly.

Key elements of the agreement

• Parties (owner and manager)

• Description of the managed property

• Scope of duties (legal, operational, financial)

• Compensation or gratuitous nature

• Duration and termination

• Reporting and documentation duties

• Signature and effective date

Common mistakes

• Unclear or too broad mandate

• No provision for payment or costs

• No agreement on cash handling

• No accounting or conflict-of-interest rules

• No documentation of actions taken

Recommendations

Owner:

• Clearly limit the manager’s powers

• Require written reports

Manager:

• Keep financial records and asset accounts separate

• Document every action taken

Practice tip

This contract is ideal for remote owners, foreign investors or elderly clients who can’t manage property personally.
Also used in family trusts or professional portfolio management.

Asset management contract template – available for a symbolic fee

I offer a Czech-English template for managing property on behalf of another person.
Suitable for real estate, business assets or private wealth.

Contact me via e-mail or contact form – quick and efficient solution.

FINAL THOUGHTS – WHAT NOW?

An asset management agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.