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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 35332
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I own a franchise in the Branson area. I manage vacation

Customer Question

Hello.
I own a franchise in the Branson area. I manage vacation rental property for the property owners. It could be condo's, cabins, or single family house. I have specific written agreements with the individual owners to manage, rent the property and collect $$ and pass them on to tax authorities, etc., including the owner's percentage. I get a % of the rental fee. I have been doing this for 3 years.
Some realtor in Branson is now claiming that because I manage and rent out vacation property for the property owner, that I must have a real estate license.
I never get involved in the buying/selling of any of my owner's property. And I don't want to become a realtor. There is no reason.
Your opinion please.
Thank you.
Paul
iTrip Branson
www.itrip.net (###) ###-####
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.

Good afternoon Paul,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Under MO law, if you act as a property manager you not only have to have a Real estate license, you must be a licensed real estate broker in MO. MO considers the renting of property and the collection of rents as a real estate brokerage service and a license is required.

The only exceptions to this law is that a person is legally allowed to manage their own properties, or for people that act as an employee of the property owner and whose duties are limited to receiving and delivering leases and lease applications, showing units per the owners direction, and engaging in administrative or clerical tasks. Here is a lunk to a discussion of the MO law as regards ***** ***** law: http://www.allpropertymanagement.com/propertylaw/property-management-law-in-missouri.html

If you advertise the rentals for the owners, or if you use your own lease agreements as opposed to those of the property owners, or if you perform the traditional job of a full service property manager) which I suspect that you do based on your description of the work you do, then you almost certainly need a broker's license---or be an employee of a Broker who owns and oversees the property management business.

You say that you own a franchise, and I would refer you to your parent company and their attorneys. While I cannot say for certain, it is possible that they have set up the franchises in MO to comply with the law, and they would be your first line of defense if you are criminally charged with operating a brokerage service without a license.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2015,

Doug