Oregon 30-Hour Real Estate Law Practice Test

What type of agreement details the terms of "employment" between the property manager and the owner?

1. Asset management agreement

2. Property transfer agreement

3. Property management agreement

4. Lease agreement

The correct answer is: Property management agreement

A property management agreement is responsible for outlining the specific terms of employment between a property manager and the property owner. This agreement typically includes details such as the scope of the property manager's responsibilities, the duration of the agreement, management fees, and the rights and obligations of both parties. It serves as a vital document that ensures both the owner and the property manager are clear on their roles and expectations, which is essential for the smooth operation and management of the property. In contrast, an asset management agreement generally relates to the broader oversight of various real estate investments and their performance, rather than focusing solely on property management. A property transfer agreement pertains to the sale or transfer of ownership of a property, detailing the conditions under which the property is sold. Lastly, a lease agreement outlines the terms between a landlord and a tenant regarding the rental of a property, rather than specifying the relationship between the property owner and the manager.