Oregon 30-Hour Real Estate Law Practice Test

What type of contract solidifies the relationship between a property manager and the property owner?

1. Property management contract

2. Property management agreement

3. Rental lease

4. Service agreement

The correct answer is: Property management agreement

The type of contract that solidifies the relationship between a property manager and the property owner is a property management agreement. This agreement outlines the responsibilities, obligations, and authority of the property manager on behalf of the property owner. It serves to establish the terms under which the manager will operate, including management fees, maintenance responsibilities, tenant relations, and the duration of the management engagement. While the term "property management contract" could be used interchangeably in some contexts, the more specific term "property management agreement" is widely recognized in the industry and emphasizes the formalized arrangement between the two parties. A rental lease pertains to the relationship between a landlord and tenants, governing the terms of tenant occupancy, which is separate from the management relationship. A service agreement typically refers to broader services beyond property management and would not specifically apply to the relationship between a property manager and an owner in the context of real estate management.