Property Manager: liability for my broker?

**nategesner** · 04-27-2010, 05:48 AM

I am a fairly new agent interested in purchasing a property management business that manages approximately 190 homes/apartments. My broker knows my professionalism and likes the idea, but she's concerned about the liability (even though she can't name a single property manager that's ever been sued).

My question: how do I operate a business under her brokerage without increasing her liability? I'm the property manager and will carry maximum insurance, so does she have a legit concern?

I personally think she's just nervous because she recently went through a lawsuit. I know I probably need to speak with a lawyer, but wanted to see what others thought first. Thanks!

**Commercial Agent** · 05-05-2010, 11:32 AM

Maybe buy the business yourself? Check with a good lawyer though.

**nategesner** · 05-05-2010, 02:53 PM

I'm actually planning on purchasing the business myself, but I'm required to operate under her Broker's license. She's concerned that my liability would still open her up to lawsuits, should I ever prove negligent.

I read a couple days ago that some states have a "Partnership LLC" that enables two people to own their own LLC while operating as partners. The example given was two doctors sharing a clinic. Doctor A partners with Doctor B, but they are not responsible for the negligence of the other. I'll have to talk to an attorney and see what my options are, but I was hoping someone could help me get started.