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Complete glossary lessonNational 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.

Official area

Property Management

Knowledge cluster

Property management

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

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 exam 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.

Decision rule

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

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.

Memory cue: 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

Which statement correctly explains Property management agreement?

Mastery tracker

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Related terms to learn next

Security deposit

A security deposit is money a landlord holds to secure a tenant's performance, such as payment of rent and responsibility for damage beyond ordinary wear, subject to the lease and applicable landlord-tenant law.

Trust funds

Trust funds are money or property a Georgia broker receives on behalf of another person in a real estate matter, including earnest money, rents, security deposits, and other client or customer funds when held by the broker.

Community association manager (CAM)

A community association manager is a Georgia licensee authorized within the CAM license class to perform specified management services for condominium, cooperative, homeowner, and similar property-owner associations for compensation.

Agency

Agency is a legal relationship in which an agent is authorized to act for a principal and owes duties arising from the relationship, the agreement, and applicable law.

Recommended next complete lesson

Continue with Property Management complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termEnvironmental hazardNext term Security deposit

Property management agreement quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is 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.

What is Property management agreement commonly confused with?

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

How does Georgia treat Property management agreement?

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.