Property Management

Realtors often handle property management for lenders, relocation companies and asset management companies.  According to an expert in real estate law, there are several cautions that should be addressed.

First, whenever an inspection - the routine monthly exterior inspection, not the GHI - reveals damage or an issue with the property, the realtor faces a disclosure requirement if they are also listing the property. 

Two, is the realtor that does an inspection, or looks at a report, qualified to say the foundation is sound, for example? If the realtor arranges for repairs, are they also indemnifying the repairs?  This is particularly important when handling these tasks for lenders on REO properties.

Third, the E&O policy which relators carry often excludes coverage for anything relating to property management; thus, realtors should be sure they do not need a separate policy to cover property management activities.

Fourth, are the fees that realtors charge competitive with the field service company alternative?  They are often higher, but there may be sufficient compensating factors for the higher cost.

Relocation folks: remember to get a CLUE report before you or your client takes a property into inventory.