Hi, just wondering if a Property Owner acts as their own Property Manager ( signs own contracts with clients, manages buildings etc.) are they held to the same standard as far as agency, disclosure and fiduciary duties? Should they have contracts that are more extensive then a standard lease agreement ( Disclosure/ REPC type stuff)
Good question. Utah licensing law requires a real estate license only if you are managing someone else’s property for valuable consideration. And disclosures of owner interest and fiduciary duties apply only to real estate licensees. Therefore, if an unlicensed owner wants to manage his/her own property, they can do so without a real estate license. Naturally, they won’t be a real estate agent which will then negate legal duties of a real estate licensee.
In order for fiduciary duties to apply, the owner would have to have some other agency agreement in place with the tenants/clients. However, it’s pretty uniform across all the states that any type of agency relationship (real estate agent/client, attorney/client, etc.) holds a conflict of interest whenever a property owner tries to represent a tenant/purchaser. So, even though the owner doesn’t have a real estate license, trying to represent the other side in some form or fashion, like an attorney-client, in that sort of transaction would likely be deemed unlawful.
Hope that helps. Getting to your other question now.
Great! I think this question might have an interesting affect to many people that do AirBNB’s, especially since now AirBNB does allow you to give access to someone else to run your BNB for you, or have access to and manage your account for you under another account (reminiscent of an property manager/agent in my opinion). It will be interesting to see how these things continue to play out with the free market.