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Property Management Requirements in Missouri

Managing property can be a lucrative and rewarding career. However, if you want to manage property in Missouri, there are certain requirements by law that you must meet.

Whether you need a Missouri real estate broker’s license to manage property depends upon the specific job and tasks that you do.

As a property manager, if you want to lease, rent, list, procure prospects, negotiate, or assist in any of these tasks, you will need to have a real estate broker’s license. In Missouri, leasing is considered a real estate brokerage service under Missouri real estate licensing laws.

The requirements to obtain a Missouri real estate broker license are:

Must be 18 years of age or older
Must provide fingerprints
Must hold a current and active Missouri salesperson license for at least 24 out of the previous 30 months preceding application for license
Must complete a 48-hour pre-exam broker course from an accredited Missouri real estate school
Must complete both portions of the Missouri broker exam
Must complete the application for license within 6 months of completion of the 48-hour pre-exam broker course

However, there are a few exceptions to the requirement of possessing a broker’s license for property managers. The requirement does not apply to people, businesses or lessees simply managing property or to their employees. A license also is not required of persons hired to manage real property, as long as their job duties are limited to activities such as receiving and delivering leases, lease applications, showing units, and clerical tasks. There is also no requirement that a Missouri community association manager or condo association manager hold a real estate broker’s license.

If you own real estate and want to hire a person to manage the property as rental property, you should check to ensure that a person is licensed appropriately under Missouri law.

If you run afoul of the law or uncertain as to what is required, consult with an experienced Missouri real estate attorney to understand your rights and obligations.

Seller’s Duties to Disclose in a Real Estate Transaction

Sellers of real estate have many responsibilities, and that makes the process very stressful. During a sale, the seller is required to provide a buyer with certain information. Though a seller is not required to disclose all information about the property, it is important to know that certain conditions regarding the property are required to be disclosed. Failure to disclose such information could result in a lawsuit against the seller by the purchaser.

To determine whether a seller’s failure to reveal certain conditions of real property is a violation of Missouri law, a court will look at whether or not the condition was discoverable if the buyer was to exercise reasonable diligence. In other words, if a poor condition would be discovered in the course of an ordinary inspection of the property, a seller is not obligated to disclose the condition to the buyer. However, if the seller is aware of an underlying condition that would not be discovered in an ordinary inspection of the premises, she has a duty to disclose this information to the buyer prior to the sale. Examples of such disclosures are:

Deficiencies in the plumbing
Pending litigation on the property not available to the public
Structural damage between the walls not visible to the eye

Nevertheless, failure to disclose this information does not always mean that a seller has violated the law. Rather, it must also be true that:

The seller was aware of the condition prior to the transaction
The buyer was unaware of the condition

It only makes sense not to require an owner to provide information that she does not possess and also to hold a buyer accountable for purchasing real estate that he knows is deficient.

Selling real estate is likely one of the largest personal sales you will ever be involved in, and you want it to go as smoothly as possible. If you are selling real property, or are alleged to have failed to disclose required information during the sale of your property, it is important that you contact an experienced attorney who can help you with all of your legal problems concerning your real estate transaction.

Transitioning From Condo Developer Control To HOA Control

When a condominium project is developed, provisions are built into the homeowner association’s legal documents that allow the developer to exercise control over the direction of the association until a designated time in the future or until a certain percentage of units have been sold to homeowners.

If you are a developer of a condominium project or a new condominium homeowner yourself, you have a vested interest in ensuring a seamless transition from developer to homeowner governance of the condominium association. After all, you’re all in this together. So, here are some suggestions to guide an uneventful transition:

Keep open lines of communication.

Because developer control can last for several months or years, the developer’s representatives often serve as members of the Board. As such, they have to act as fiduciaries and in the best interests of the association. However, conflicts often arise because what’s best for the association often results in increased costs for the developer. This can be solved by recognizing the conflict and by maintaining transparency and open lines of communication.

The developer should encourage homeowner involvement along the way.

The developer should include benchmarks for gradually involving more and more homeowners and giving them limited participation in the affairs of the association. Some benchmarks can include the formation of an advisory committee to make recommendations to the Board or phased in appointment of homeowners to the Board. This will assure that the homeowners are well prepared to assume taking over association responsibilities when the time comes.

Keep a watchful eye once the owners are in control.

This is a critical time for all. The transition is usually accomplished at a special meeting held to elect homeowners to serve on the Board. It’s important to note that the developer’s responsibility to the association does not end at this point — only his control over the association does. It’s up to the homeowners to develop a strategic plan to go forward, but the developer should still remain involved if he cares about his reputation.

It can be beneficial for both sides to get an experienced real estate lawyer involved to help with the transition process to ensure a vibrant, financially and legally sound condominium development for years to come.

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