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Generally, in order for a real estate agent to receive a commission there needs to be a contract in writing (at least for it to be enforceable--and I'm quite sure that some states require a written contract period.) But, if he's an employee he is not necessarily acting as an agent (i.e. selling property for others).
The Condo Association should have some form of oversight. Are the financial books audited or subject to some type of review? Have sales of foreclosed condos taken place already? What types of documentation are available for review? Closing statements should indicate whether commissions have been paid.
I can fully understand expenses associated with a real estate closing not being budgeted. Closing costs would normally just offset the dollar amount received from a sale--so only the net amount may be shown (if at all if the sale wasn't anticipated, because you can't budget what you don't anticipate.)
Maybe you should ask your questions to someone on the Condo Association board.
They claim that they have done an audit but they can't remember the name of the company which makes this sound more fishy.
Owners have been asking for more documentation but it has fallen on deaf ears. The financial records are being kept at the PM's office as opposed to the complex. The governing body for the owners have not demanded a change.
I am trying to get more answers. We will see. The next time we have a meeting I will grill them but I needed to know more about the real estate transactions in relation to the PM so I know what to ask.
I am trying to get more answers. We will see. The next time we have a meeting I will grill them but I needed to know more about the real estate transactions in relation to the PM so I know what to ask.
Maybe a better tact is to read the Bylaws and determine what it takes to elect new Board members.
I'm having trouble keeping up with your questions.
Your first post seemed to be asking whether a person who is not licensed as a real estate agent can act as a real estate agent if they are the property manager. The answer is no. You have to be a licensed real estate agent in order to represent a 3rd party in the sale of any property. Now if they were the owner, or an employee of the owner, the answer might be "maybe", depending on state law.
Your second post seems to be saying the person is licensed to practice real estate, but that it is unethical to do both real estate and property management on the same property. It is not. We do that all the time. We manage about 150 rental properties, many of which we have represented the landlord when they bought the property. We have also helped some people sell rental properties we managed at the time.
Your 3rd post seems to be saying the property manager is trying to sell a property that they have no permission to sell. That is unethical. The agent has to have written permission to represent the owner, and to list and sell the property. So if the owner didn't agree for the agent to sell the property, they cannot do so.
I'm having trouble keeping up with your questions.
Your first post seemed to be asking whether a person who is not licensed as a real estate agent can act as a real estate agent if they are the property manager. The answer is no. You have to be a licensed real estate agent in order to represent a 3rd party in the sale of any property. Now if they were the owner, or an employee of the owner, the answer might be "maybe", depending on state law.
Your second post seems to be saying the person is licensed to practice real estate, but that it is unethical to do both real estate and property management on the same property. It is not. We do that all the time. We manage about 150 rental properties, many of which we have represented the landlord when they bought the property. We have also helped some people sell rental properties we managed at the time.
Your 3rd post seems to be saying the property manager is trying to sell a property that they have no permission to sell. That is unethical. The agent has to have written permission to represent the owner, and to list and sell the property. So if the owner didn't agree for the agent to sell the property, they cannot do so.
None of those things are accurate about what I said, so let me clear this up.
My first post was about a property manager who is licensed as a realtor. The issue was having a person function as both even though they are only contracted out to be a property manager.
My second post is bringing up the point that the property manager is in charge of hiring a realtor and I was wondering if it's ethical for him to hire himself to do that particular task of selling property, even though it is not spelled out for him to sell property in his property management contract.
My third post isn't necessarily saying that he doesn't have permission. That is predicated on the answer to the original question. I am still trying to find out if he has permission to sell property and if he does, is that ethical for him to essentially hire himself to do it.
None of those things are accurate about what I said, so let me clear this up.
My first post was about a property manager who is licensed as a realtor. The issue was having a person function as both even though they are only contracted out to be a property manager.
My second post is bringing up the point that the property manager is in charge of hiring a realtor and I was wondering if it's ethical for him to hire himself to do that particular task of selling property, even though it is not spelled out for him to sell property in his property management contract.
My third post isn't necessarily saying that he doesn't have permission. That is predicated on the answer to the original question. I am still trying to find out if he has permission to sell property and if he does, is that ethical for him to essentially hire himself to do it.
If he is licensed as a realtor, he has permission to sell property. Whether he has permission to sell THAT property isn't an issue of conflict of interest, or ethics, it comes down to what the contract between himself and the landlord/owner says.
The only way I could see this being unethical is if he signed the seller's representation paperwork as both the seller and the agent. Or if he doesn't have paperwork at all. If the seller agreed to it, in writing, it is legal and ethical.
So the answer to your question lies in whether or not the seller agreed to it. If yes, then it is legal and ethical. If no, then it is not.
The agent can't just sell the property based on property management paperwork. Specific representation paperwork is necessary, no matter which agent lists the property.
I hear what you are saying but I think in some of what you are giving is a general answer to this situation. Your points are valid, but this is not what I would consider a general situation.
Quote:
Originally Posted by Lacerta
If he is licensed as a realtor, he has permission to sell property. Whether he has permission to sell THAT property isn't an issue of conflict of interest, or ethics, it comes down to what the contract between himself and the landlord/owner says.
The landlord/owner in this case is the Condo Association. The property manager is a representative of this entity. He is given the responsibility of hiring contractors or in this case a realtor. The question of ethics comes up for me because I wonder if it is considerable acceptable for him to in essence hire himself. We're not talking about two different people, we're talking about one person, which is why the question was asked.
I would equate this situation to a property manager hiring himself to do maintenance on the property. He basically is paying himself.
Quote:
Originally Posted by Lacerta
The only way I could see this being unethical is if he signed the seller's representation paperwork as both the seller and the agent. Or if he doesn't have paperwork at all. If the seller agreed to it, in writing, it is legal and ethical.
Again, you are talking about a general situation. He is acting in this case as a seller and a seller's agent. As an property owner, it makes me wonder how this situation is being handled financially when there is nothing to prove what he made off of the transaction. That is something that none of us can answer of course except the Condo Board and the Property Manager, which has been mum on the situation.
Quote:
Originally Posted by Lacerta
So the answer to your question lies in whether or not the seller agreed to it. If yes, then it is legal and ethical. If no, then it is not.
As of right now, for owners, there is nothing supporting that there was an agreement, which is my concern. It's not written out as part of his contract as a property manager, so for me that is why I wondered if a property manager would be required to sign a separate contract as a realtor if he acted as one.
Quote:
Originally Posted by Lacerta
The agent can't just sell the property based on property management paperwork. Specific representation paperwork is necessary, no matter which agent lists the property.
Okay so that does answer my question. So my next step will be to see how I can get to that contract.
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