Can a property owner cancel the Property Management Ageement?

if he found out that the saleperson in the agreement has inactive real estate license.?
In Property Management - Asked by Tony K. - Aug 7, 2013
Report Abuse
Answer this Question

Answer(s)

Robert S.
Owner/Investor
North Palm Beach, FL

Need to clarify whether agreement or contract is with that person's Broker. Usually agreement is with Broker. He may assign property to an active licensed agent.

Aug 9, 2013
Report Abuse
Leslie H. C.
Broker/Agent
Denton, TX

My recommendation is to contact the managing broker and let them know you want to terminate the agreement. A fee based property manager in most cases will avoid an adversarial relationship. The fact that the agent that you were working with either had an expired license at the time of signing the contract or it expired during the term without notification should give the managing broker reason to terminate. Be professional and courteous and I think you will be surprised how quickly the agreement can be terminated.

Aug 9, 2013
Report Abuse
Vetra R.
Broker/Agent
Chicago, IL

Generally speaking, the property management contractual agreement with the brokerage firm would require the firm to be licensed to practice real estate in Illinois. If the firm (broker in charge) is not licensed, then the contract is considered null and void and the firm (broker in charge) is violating the license law of practicing without a valid license. If the salesperson is actively working on behalf of the firm (broker in charge) and is not required to be a licensed Leasing agent, then the contract is valid. However; in Illinois, property managers are required to have licensed leasing agents on staff. Please check with the governing real estate agency for further insight before breaking what could otherwise be a legally binding contractual agreement.

Aug 14, 2013
Report Abuse
John P.
Broker/Agent
Glen Burnie, MD

A Property Management Agreement is a "Bi-Lateral Contract' that, to be valid, must have a Begin date and an End date. This contract therefore, should have a clause that discusses any "Default" and the other party's "remedy" for such default. Remember, the "Contract" specifies the complete agreement. The cancellation of any valid contract will be grounds for litigation. Determining whether or not to seek a litiginous solution will, in the end, determine whether the Owner's cancellation will be successful--or not. Even if the Owner is contractually wrong to cancel, the financial loss and/or business embarrasment may prohibit making an issue of the cancellation.

Aug 18, 2013
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question