Legal Question in Real Estate Law in California

Can a Licensed RE Agent Manage a duplex for a friend with out getting in trouble with Board of Real Estate and the IRS?


Asked on 10/13/12, 4:44 pm

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

A person who manages real property for another for compensation must hold a real estate broker's license. See (among other cases) Riley v. Chambers, decided by the California Supreme Court in 1919 and reported at 181 Cal. 589. The agent would have to do it for free.

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Answered on 10/13/12, 5:26 pm
Neal Rimer Neal M. Rimer, Esquire

A licensed agent works for a broker. There are CAR forms for the agent to manage real property. A letter agreement could also work as a written agreement to manage the property. As long as there is a signed agreement, the agent can perform the tasks required to manage the property.

Income derived from the management of the property is income to the agent and an expense of the property owner. They each would report to the IRS.

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Answered on 10/14/12, 6:15 am
Anthony Roach Law Office of Anthony A. Roach

Not without a supervising broker.

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Answered on 10/14/12, 10:25 am


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