Unauthorized lease terms signed by unlicensed onsite manager

5 Replies

Does anyone have any experience similar to this: I signed an agreement with a real estate salesperson to manage my property. He had a managing broker for his sales transactions and he tries to keep his property management business separate. He used an unlicensed onsite manager at my property. Several months ago, the onsite manager entered a long term lease (several years) without the knowledge of the real estate salesperson or me. The onsite manager was recently let go and I just found out the unauthorized lease. Also, the tenant has prepaid rent for the entire lease term at a ridiculously low rate ($10k-15k) and the onsite manager has taken off with all the money. There is no lease agreement but simply a handwritten receipt by the manager acknowledging the amounts and the dates that the tenant supposedly have paid for with the manager's signature. What is my recourse? What is the tenant's recourse?

Sounds like the unauthorized manager was an employee of your agent. In that case, you should be suing the agent/his management business. I'd hire an attorney ASAP and hope the agent has errors and omissions insurance. You may also want to pursue the unauthorized agent criminally for theft.

@Alice Yip depending on the state, the Realtor may still have needed a brokers license to manage rentals. Thus, they may have unwittingly also exposed their broker to your lawsuit as brokers are technically responsible for all real estate actions of their agents.

I would talk to the person you hired.  They are responsible.  Their insurance should make you whole,  then you can work it out with the tenant (who is innocent here hopefully)...