Alabama License LawIntermediateAlabama Exam
An Alabama real estate licensee who provides property management services without a property management contract in place:
AIs performing lawfully as long as the owner consents verbally, which most practitioners would generally accept
BIs creating significant risk — oral management arrangements may be difficult to enforce and create liabilityCorrect
CIs required by AREC to use only standardized forms
DCan only manage up to 5 units without a written contract
Why Is creating significant risk — oral management arrangements may be difficult to enforce and create liability Is Correct
Answer B: Is creating significant risk — oral management arrangements may be difficult to enforce and create liability
Oral property management arrangements are enforceable in some circumstances but create significant risk for the manager. Written management contracts are strongly recommended to define the scope of authority and obligations.
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