Property Management

What is the purpose of a property management agreement?

ATo list the property for sale
BTo establish the scope of the manager's authority, responsibilities, and compensation✓ Correct
CTo set the lease terms for tenants
DTo record the property with the county

Explanation

A property management agreement is a contract between the owner and manager that defines the manager's duties, authority, compensation (management fee), duration, and the owner's obligations. It creates the agency relationship.

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