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Updated over 10 years ago on . Most recent reply

User Stats

100
Posts
34
Votes
Jenna Stonecipher
  • Real Estate Investor
  • Memphis, TN
34
Votes |
100
Posts

Is the brokerage responsible for my rentals?

Jenna Stonecipher
  • Real Estate Investor
  • Memphis, TN
Posted

I'm a newly licensed agent in Tennessee, working solely in new construction.

My builder/principal broker is concerned with being liable/responsible for the 2 rental properties that I own, live in, and manage myself. In no way do I intend to sign a management agreement with the brokerage or involve the brokerage in any way. 

I'm having a hard time getting information from the state. Does anyone have any insight into this? Is there a release of liability form that I need to sign?

Any insight it appreciated. Thanks in advance.

Most Popular Reply

User Stats

85
Posts
40
Votes
Steve Chaisson
  • Nashville, TN
40
Votes |
85
Posts
Steve Chaisson
  • Nashville, TN
Replied

Your broker has liability for your actions as an agent. You have responsibilities for that are delineated in the NAR Code of Ethics. Your broker absolutely can regulate your conduct with respect to rental properties you own within the terms of your agency agreement.

Your licensure creates a higher standard of duty to the public, and if someone is injured at one of your properties due to your negligence any competent attorney is going to bring your broker into the lawsuit.  

You need to carry a separate E&O policy for property management if you hold a license. RICE has property management coverage for agents. Get the additional coverage and hopefully your broker will be satisfied. I would not dismiss his/her argument as unfounded.

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