Alaska Property Management & Community Association Managers
If your association hires a manager, this is the rulebook that manager works under. Article 9 of the Alaska Real Estate Commission's regulations covers property management transactions and, in one section written specifically for communities, the duties of a licensee who performs community association management — including a 10-day deadline to produce a resale certificate. Reproduced here with the licensee-duty statutes it builds on.
This page hosts Article 9 of 12 AAC 64 — the Alaska Real Estate Commission's property management regulations (12 AAC 64.550–64.580) — together with the four sections of the real estate licensing statute (AS 08.88) that those rules build on. It matters to a community association for a simple reason: if your board hires a professional manager, this is the standard that manager is held to, and the Commission is where a complaint about their conduct goes.
An important scope limit. These are rules for licensees — real estate licensees regulated by the Commission. They govern the manager, not the association. They do not give your board powers or impose duties on your board, and a self-managed community with no licensed manager is largely outside them. Whether a particular manager must be licensed is a separate question under AS 08.88 and 12 AAC 64.905; you can check any license through the Division of Corporations, Business and Professional Licensing.
The section written for community associations
12 AAC 64.580 is the one aimed squarely at communities. On top of the general licensee duties in AS 08.88.615, a licensee engaged in community association management must:
- Work under a written contract that complies with AS 08.88.341 and states the services provided, the fees charged, the timeframe of the relationship, and includes the consumer pamphlet required by 12 AAC 64.118.
- Comply with local, state, and federal laws.
- Disclose any conflict of interest as outlined in AS 08.88.391.
- Handle collected funds under the Commission's trust-account rules (12 AAC 64.180–64.271).
- Provide the resale certificate within 10 days of a written request, under the purchaser-protection provisions of the Uniform Common Interest Ownership Act (AS 34.08.510–34.08.700).
That last one is the most practical for an owner trying to sell. AUCIOA already entitles a buyer to a resale certificate from the selling owner (§ 34.08.590(a)) and gives the association 10 days to furnish it after a written request and payment of a reasonable fee (§ 34.08.590(b)). This regulation makes that same 10-day deadline a licensing duty of the manager who actually produces it — so a stalled request is not just a contract problem, it is something the Real Estate Commission can act on.
The general property-management rules
- A written contract is mandatory. A licensee may not manage property for someone else without a prior written property management contract, and it must state at minimum the manager's specific responsibilities, the authority and powers the owner grants, the period of the agreement, and the management fee (12 AAC 64.550(b)). Management activity must be conducted in the registered name of the real estate company the licensee is affiliated with (12 AAC 64.550(a)).
- Moving money between accounts for the same owner requires written authorization, with entries fully identifying the transaction in each ledger account (12 AAC 64.550(c)).
- Selling a property that is under management must be authorized either by specific language in the management contract or by a separate listing agreement (12 AAC 64.550(d)).
- A licensee who owns rental property must say so in writing to all tenants and prospective tenants, naming the company they are affiliated with (12 AAC 64.550(e)), with further disclosure and record-sharing duties if they own the property they manage (12 AAC 64.570).
- Security deposits are a disciplinary matter. Failing to deposit prepaid rents or security deposits in a trust account as the Uniform Residential Landlord and Tenant Act (AS 34.03) requires is expressly treated as fraudulent or dishonest conduct for licensing purposes (12 AAC 64.560).
The duties every licensee owes
Underneath the regulations sit the statutory duties, reproduced below. AS 08.88.615 says that regardless of the type of relationship, a licensee owes each person they give specific assistance to a list of duties that includes reasonable skill and care; honest and good faith dealing; timely presentation of all written offers, notices, and communications; and disclosure of material information known to the licensee about the physical condition of the real estate — though that disclosure duty carries no obligation to investigate (§ 08.88.615(b)). The statute lists further duties, including accounting for money and property received. AS 08.88.341 requires listings and management contracts to be in writing and signed, with exclusive agreements carrying a definite expiration date that can be extended only in writing. AS 08.88.391 requires prompt written disclosure of a conflict of interest — though note its own limit: a failure to disclose does not create a private cause of action, but the Commission may impose discipline. AS 08.88.660 sets when a licensee relationship begins and ends.
If something goes wrong
Because these are licensing rules, the remedy is usually regulatory rather than private: the Commission may impose a disciplinary sanction for a violation under AS 08.88.071. There is also the real estate recovery fund (AS 08.88.450), from which a person can seek an award for a loss caused by a licensee's fraud, intentional tort, deceit, or conversion of trust funds or community association accounts (AS 08.88.460(a)). But read the limit carefully: where the loss arises in the course of community association management, only the owners' association — not an individual owner — may file that claim (AS 08.88.460(e)). A dispute with your association — as opposed to its manager — runs on different law: the Uniform Common Interest Ownership Act or the Horizontal Property Regimes Act, the Nonprofit Corporation Act, and your recorded declaration and bylaws. Discrimination questions go to the Alaska State Commission for Human Rights or the federal Fair Housing Act. Return to the Alaska HOA laws hub for the full set.
Contents · 8 sections ▾
- 12 AAC 64, Article 9 — Property Management
- 12 AAC 64.550 Property management transactions.
- 12 AAC 64.560 Compliance with Uniform Residential Landlord and Tenant Act.
- 12 AAC 64.570 Property management of real property.
- 12 AAC 64.580 Licensee who performs community association management.
- Alaska Stat. Ch. 08.88 — the licensee duties these rules build on
- 08.88.341 Listings or management contracts.
- 08.88.391 Conflict of interest.
- 08.88.615 Duties owed by licensee in all licensee relationships.
- 08.88.660 Duration of relationship.
12 AAC 64, Article 9 — Property Management
(a) A licensee engaged in property management shall conduct property management activity in the registered name of the real estate company with which the licensee is affiliated.
(b) A licensee may not conduct property management activity for another person without a prior written property management contract. At a minimum, a property management contract must include the
(1) specific responsibilities of the property manager;
(2) authority and powers given by the property owner to the property manager;
(3) period of the agreement; and
(4) management fee.
(c) A licensee acting as a property manager may transfer funds between two or more accounts maintained for the same property owner if the licensee has written authorization from the property owner. The licensee shall make entries fully identifying the transaction in each of the ledger accounts affected.
(d) The sale or exchange of a property that is subject to an existing property management contract must be
authorized by specific language in the property management contract or by a separate listing agreement.
(e) A licensee that owns rental real property shall disclose in writing to all tenants and prospective tenants of that property that the licensee holds a real estate license and the name of the company with which the licensee is affiliated.
Failure of a licensee engaged in property management to deposit prepaid rents or security deposits in a trust account as required by AS 34.03 (Uniform Residential Landlord and Tenant Act) is considered fraudulent or dishonest conduct within the meaning of AS 08.88.071(a)(3)(A)(iv).
(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.
In addition to the requirements in AS 08.88.615, a licensee engaged in community association management must
(1) comply with the provisions of AS 08.88.341, and must include the
(A) services provided;
(B) fees charged;
(C) timeframe of the relationship between the licensee and the entity;
(D) consumer pamphlet as provided for in 12 AAC 64.118;
(2) comply with local, state, and federal laws;
(3) disclose any conflict of interest as outlined in AS 08.88.391;
(4) collect funds to comply with 12 AAC 64.180 - 12 AAC 64.271; and
(5) provide the resale certificate within 10 days of written request under AS 34.08.510 - 34.08.700.
Alaska Stat. Ch. 08.88 — the licensee duties these rules build on
All real estate listings or management contracts must be in writing and must be signed by the broker or associated licensee of the broker and by the client or an authorized representative of the client for whose benefit the real estate licensee will act. All real estate exclusive listings or management contracts must have a definite expiration date that may be renewed or extended only by a written agreement signed by the client or the client's authorized representative.
(a) A real estate licensee who has a conflict of interest relating to a real estate transaction shall disclose that conflict of interest to the persons adversely affected by the conflict or their real estate licensees and confirm the conflict of interest in writing to the persons adversely affected by the conflict or their real estate licensees involved in the transaction as soon as possible after the conflict is identified. The licensee must also verbally advise the person of the conflict, and begin any written statement of the conflict of interest with these words, underlined and written in bold: “Disclosure of Conflict of Interest.”
(b) The failure of a licensee to disclose a conflict of interest as required under this section does not give rise to a cause of action by a private person. However, the commission may, under AS 08.88.071, impose a disciplinary sanction for violation of this section.
(c) In this section, “conflict of interest” is when a licensee
(1) has a present ownership or leasehold interest in the property that is the subject of a transaction;
(2) is whole or part owner of a business interest in the property being marketed or considered for purchase or lease;
(3) represents a relative, as defined in AS 08.88.900(a)(19), or a person with whom the licensee has a financial relationship if the relative or person has a present financial interest in the property being marketed or considered for purchase or lease;
(4) receives compensation from someone other than a party to the contract or another party having a financial interest in the transaction; or
(5) receives compensation for community association management while simultaneously engaged as a property manager for a unit within the community association.
(a) Unless additional duties are agreed to in a written document signed by the person, and regardless of the type of licensee relationship in which the real estate licensee is acting, a real estate licensee owes the following duties to each person to whom the licensee provides specific assistance:
(1) the exercise of reasonable skill and care;
(2) honest and good faith dealing;
(3) the presentation of all written offers, written notices, and other written communications to and from the person in a timely manner regardless of whether the real estate is subject to an existing contract for sale or lease or the person is already a party to an existing contract to buy or lease real estate;
(4) except as provided in (b) of this section, the disclosure of all material information known by the licensee regarding the physical condition of real estate if the information substantially adversely affects the real estate or a person's ability to perform the person's obligations in the real estate transaction or if the information would materially impair or defeat the purpose of the real estate transaction;
(5) accounting in a timely manner for all money and other property received from or on behalf of the person;
(6) before the licensee provides specific assistance to the person, or when entering into a contract with the person to provide specific assistance, providing a copy of the pamphlet established under AS 08.88.685(b)(2) and produced under AS 08.88.685(c) that outlines the duties of the types of licensee relationships identified under AS 08.88.600;
(7) before the licensee provides specific assistance to the person, obtaining from the person a document signed by the person that discloses the licensee's relationship with the person;
(8) in addition to the document provided under (7) of this subsection, providing to the person when the person signs an offer in a real estate transaction handled by the licensee a written statement that states whether the licensee represents the buyer, represents the seller, represents the lessee, represents the lessor, or provides specific assistance to both the buyer and the seller or both the lessee and the lessor as a neutral licensee; the statement must be contained in a separate paragraph entitled “Licensee Relationships” in the contract between the buyer and seller or the lessee and lessor, or in a separate document entitled “Licensee Relationships.”
(b) The disclosure requirements of (a)(4) of this section may not be construed to imply a duty to
(1) investigate a matter that
(A) the licensee has not agreed to investigate; or
(B) is not known by the seller, prospective buyer, lessor, prospective lessee, or licensee; or
(2) disclose, unless otherwise provided by law, events that have occurred on the real estate that might affect whether a person wants to buy or lease the real estate.
(c) Notwithstanding (b)(2) of this section, before a buyer makes or accepts an offer in a real estate transaction, a real estate licensee shall disclose to the buyer that a murder or suicide occurred on the real property that is the subject of the real estate transaction if
(1) the murder or suicide occurred within one year before the date that the licensee first showed the real estate to the buyer; and
(2) the licensee is aware that the murder or suicide occurred on the real estate.
(a) A licensee relationship with a buyer, lessee, seller, or lessor begins when the licensee represents or provides specific assistance to the buyer, lessee, seller, or lessor and continues until the earliest of the following events occurs:
(1) the licensee completes the representation or specific assistance;
(2) the relationship term agreed on by the buyer, lessee, seller, or lessor terminates;
(3) the licensee and the parties to the relationship terminate the relationship by mutual agreement; or
(4) a party to the relationship terminates the relationship by giving notice to the other party.
(b) The termination of a relationship under (a)(3) or (4) of this section only terminates the licensee relationship and does not affect other contractual rights of the parties to the licensee relationship.
(c) Except as otherwise agreed to in writing, a licensee does not owe a further duty to a buyer, lessee, seller, or lessor after termination of the licensee relationship, except for the duties of accounting for all money and other property received during the relationship and not disclosing confidential information.
General information, not legal advice. Statutory text is reproduced from the official Alaska source and may not reflect the most recent amendments.