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Who Can Perform Property Management Services


By Lee Warren, Prospect Inspectors, Inc., Professional Inspector License #8411 and member of CCAR's Property Management Committee

One of the most common complaints submitted to the Texas Real Estate Commission (TREC) is in relation to property management. TREC requires that license holders must be competent in the field in which they are working. With so many specific rules in regard to property management, it's very easy to miss a critical component, which can cause harm to license holders, renters, and property owners alike.

If you're a broker, it's a good idea to touch base with your sponsored agents to verify that they're not performing property management services, unless they're permitted to do so. Under certain conditions, a broker can be held responsible for the actions of a sponsored license holder performing property management services improperly, even if they're unaware that the license holder is doing so.

License holders who are performing property management services should verify that their broker is aware and has made the proper arrangements as they relate to business entity creation, escrow accounts, etc. License holders are not allowed to receive compensation from anyone but their broker, unless they have separate written permission from their sponsored broker.

If you have property management questions, please reach out to a member of CCAR's Property Management Committee. In addition, CCAR's Property Management Committee meetings are open to all members—join us! Upcoming Property Management Committee meetings are listed on CCAR's website.


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