Section 12.64.570. Property management of real property.

	(a)  A licensee who has sole ownership of rental property either may manage the property through the licensee's employing broker or may employ another broker or property manager to perform those management duties. Notwithstanding 12 AAC 64.550, the licensee or the owner's broker is not required to keep records or files of rental agreements or rental transactions, if the files or records are kept by the licensee being employed.  
	(b)  In addition to the duties set out in AS 08.88.615, a licensee who owns real property described in (a) of this section must also  
		(1) disclose to each prospective lessee or tenant  
			(A) the items described in AS 08.88.615(a)(6) - (8); and  
			(B) the licensee's ownership in accordance with AS 08.88.391; and  
		(2) provide the licensee's broker with the following information for each property owned by the licensee:  
			(A) ownership position and percentage;  
			(B) copies of all financial records and rental agreements;  
			(C) an update for the broker when a change occurs to the information required to be provided under this subsection;  
			(D) security deposits and prepaid rents to be held in the broker's trust account in compliance with 12 AAC 64.200 or held in a licensee's privately owned trust account to which the broker has access for oversight and review purposes; in this subparagraph, "prepaid rent"   
				(i) means that amount of money demanded by the landlord at the initiation of the tenancy for the purpose of ensuring that rent will be paid;   
				(ii) does not include the first month's rent or money received as security for damage;  
			(E) written documentation to refund a security deposit or deduct money from a security deposit.  
	(c)  Notwithstanding 12 AAC 64.200, rents and other incidental income may be paid directly to the licensee as the lessor and need not be deposited in the broker's trust account.   
	(d)  The duration of the relationship between the licensee and the lessee must meet the requirements of AS 08.88.660.  
	(e)  The commission may, under AS 08.88.071, impose a disciplinary sanction for violation of this section. A claim under AS 08.88.460 may be filed by a person if the claim is based on a violation of fraud, misrepresentation, or deceit and the person suffered a loss as a result of the violation.  
	(f)  If the property is owned by a partnership, corporation, limited liability company, or other such legal entity in which a licensee has an interest, the licensee must disclose a licensee's ownership position and ownership entity to the broker. If one or more licensees combined have a controlling interest or participate in the day-to-day operation or management of the subject property, the licensees are subject to this section except for (b)(2)(B) of this section. In lieu of compliance with (b)(2)(B) of this section, the financial records and copies of rental agreements for the property must be made available to the licensee's broker for oversight and review.  

Authorities

08.88.071;08.88.081;08.88.391;08.88.460;08.88.615;08.88.660

Notes

Authority

AS 08.88.071 AS 08.88.081 AS 08.88.391 AS 08.88.460 AS 08.88.615 AS 08.88.660

History

Eff. 3/29/2008, Register 185; am 8/18/2010, Register 195