Is managing friends’ property without a real estate license OK?
03/27/2014 | Author: Editorial Staff
A friend of mine gets paid to manage other friends’ properties. He says he doesn’t need to have a real estate license to do this. Is this true?
It depends on what services your friend is providing in his property management. Under the Real Estate License Act, a license is required when a person handles the leasing of someone else’s property. Additionally, someone who controls the acceptance or deposit of rent for a single-family residential property on behalf of another person must be licensed.
A person controls the acceptance or deposit of rent if:
- The person has the authority to use the rent to pay for services related to management of the property; or
- The person has the authority to deposit the rent into a trust or bank account and sign checks or withdraw money from the account.
Get answers to more property management questions in the Legal FAQs section of TexasRealEstate.com.
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