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Professional Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Rental Property Management Services

2. Practice Standards

(q) Agency Disclosure for Rental Property Managers

Section 5-10 of the Rules provides that before providing trading services to or on behalf of a party to a trade in real estate, a licensee must disclose the nature of the representation that the licensee will provide, whether the licensee or related licensee is or expects to be providing trading services to or on behalf of any person in relation to the same trade, whether the licensee or related licensee is or expects to be receiving remuneration relating to the trading services for any other person and the nature of the licensee’s or related licensee’s relationship with the other person.

Included in the definition of ‘‘rental property management services’’ is the provision of trading services in relation to the rental of real estate. Trading services includes the activity of negotiating the terms of the trade in real estate, which includes the leasing of real estate.

As a result of these definitions, licensees providing rental property management services must disclose to all parties the nature of the representation that the licensee will provide. In relation to rental property management, such disclosure must be made to the person on whose behalf the property will be rented (generally the owner), as well as to each prospective tenant.

It is important for licensees providing rental property management services to consider the nature of the relationship that they intend to create with each party in relation to the rental of the property.

Licensees should review the section entitled ‘‘Agency’’ to review the obligations and duties that arise in relation to the different types of representation that can occur.

The Disclosure of Representation in Trading Services should be used by all licensees offering rental property management services in order to explain the nature of the representation that the licensee will provide.

 

[updated 06/15/2018]