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Real estate glossaryNational exam concept

Property management agreement

A property management agreement is a written contract authorizing a manager or brokerage to operate rental property for an owner within stated powers, duties, fees, term, reporting, leasing, maintenance, trust-fund, and termination provisions.

Exam area: Property Management

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What does “property management agreement” mean in real estate?

A property management agreement is a written contract authorizing a manager or brokerage to operate rental property for an owner within stated powers, duties, fees, term, reporting, leasing, maintenance, trust-fund, and termination provisions.

How is “property management agreement” different from the closest wrong answer?

The management agreement creates authority between owner and manager. A lease creates possession and payment rights between landlord and tenant.

What is the Georgia-specific rule?

Georgia brokerage and trust-account rules apply when a licensee manages property for another. Authority to spend, sign leases, hold deposits, and hire vendors must come from the agreement and law.

Worked exam example

Scenario

An owner authorizes a brokerage to advertise units, screen applicants under lawful criteria, collect rent, arrange repairs within a dollar limit, and report monthly.

What is the most common exam trap?

Trap correction

A manager's broad operational role does not create unlimited authority to sell, borrow against, or materially alter the property.

Original exam check

Apply the definition

A brokerage manages a rental house under a written agreement that lets it lease the unit, collect rent, and order repairs up to $1,000. A buyer makes a strong offer to purchase the house. What authority does the manager have?

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