Property Management
In Minnesota, a property manager who collects a commission for leasing a unit in addition to the monthly management fee must:
AReturn the leasing commission to the tenant
BDisclose and have the leasing commission authorized in the property management agreement✓ Correct
CShare the commission with the previous tenant
DObtain separate approval from the Department of Commerce for each lease commission
Explanation
A property manager's compensation structure—including any leasing commissions, vacancy fees, or additional charges—must be clearly specified in the property management agreement. The owner must know about and authorize all compensation the manager receives related to the property.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
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