Key takeaways
- Hiring a property manager does not give it the right to sell your house unless the agreement says so.
- Two clauses create the obligation: an exclusive right to sell, and a commission if the tenant or another introduced buyer purchases.
- Texas Occupations Code 1101.806(c): no lawsuit for a sales commission without a written agreement signed by the party being charged.
- Selling does not end the lease, and the new owner becomes liable for the tenant's security deposit (Property Code 92.105).
- Perpetual Property Management is part of Perpetual Realty Group, LLC, a licensed Texas brokerage that also sells investment property.
No. Hiring a company to manage your rental does not, by itself, give that company the right to sell it. Management and listing are different services, and in Texas a broker can sue for a sales commission only on a written, signed agreement. The only way a property manager ends up with a claim on your sale is a clause in the management agreement you signed. That is the same whether your rental is in Fort Worth, Keller or anywhere else in the state.
So the honest answer has two parts: you are free to sell however you like unless you agreed otherwise, and you should check whether you did. This article shows the two clauses that create the obligation, how to narrow them, and when selling through the manager is the better choice anyway. The guide to canceling management when selling your rental covers ending the management side.
The two clauses that can tie your sale to the manager
Two kinds of paragraph can tie your sale to the manager. Here is how to spot each one and what to do about it:
The two clauses to find before you sign
| Clause | What it says | What to do |
|---|---|---|
| Exclusive right to sell | If you offer the home for sale during the management term, the company is the listing broker at a stated commission | Ask to delete it, or replace it with a right to make a listing proposal you can decline |
| Commission on a sale to the tenant | If the tenant the company placed buys the home, a commission is owed | Often fair; limit it to the current tenant and to the lease term plus a short tail |
| Commission on a sale to anyone introduced, or anyone at all | A commission is owed on any sale during or after the term | Remove it; it charges you for a sale the company did not produce |
How to read this table: the first row decides who lists the house, the next two decide whether a commission is owed when someone else does. Under Texas Occupations Code 1101.806(c), a commission claim needs a written promise or agreement signed by the person being charged, so these clauses matter only if they are in the document you signed.
How to remove or narrow them before signing
Ask for the exclusive right to sell to be deleted. It is a separate decision you can make when the time comes, and a company confident in its sales service does not need to lock it in during management. If the company resists, ask instead for a right of first refusal: you will give it the chance to make a listing proposal, with no obligation to accept it.
For the tenant-sale commission, decide whether you think it is fair. If the company placed the tenant, a commission on a sale to that tenant during the lease is a reasonable trade for the introduction. Narrow it in two ways: limit it to the current tenant, not to "any party introduced," and limit it in time, for example to the lease term plus a short tail after management ends. Put the change in a signed addendum. The guide to the management agreement explains how surviving clauses like this one are handled across the whole document.
What happens to management and the tenant when you sell
Selling does not end the lease. The buyer generally takes the house subject to the existing lease, and the tenant keeps the same rights through the term. Under Texas Property Code 92.105, the new owner becomes liable for returning the security deposit from the date title transfers and must give the tenant a signed statement with the exact deposit amount. The seller stays liable until the buyer has received or assumed the deposit, unless a written contract says otherwise.
Say you own a rental in Keller with a tenant eight months into a lease and you sell to an investor who wants the tenant to stay. The listing broker coordinates showings under the lease's entry terms and gives buyers the lease and the deposit accounting. The manager hands over the file, the deposit and the keys. If one company does both, that is coordinated by default; if two are involved, you are the coordinator. See selling a rental with a tenant in place.
When selling through the manager is the better choice anyway
Even with no obligation, there are real reasons to use the manager, provided the manager is also a competent sales brokerage. It already has the inspection reports, the repair history, the lease and the deposit accounting, which are the documents an investor buyer will ask for first. It has a working relationship with the tenant, which is what keeps showings cooperative. And it can price the house to both markets, as a rental producing income and as a home, because it knows what the house actually rents for rather than what a listing site estimates.
The reasons not to are just as real. If the company's sales side is an afterthought, with few closings and little marketing, you want a dedicated listing agent. If you have a long relationship with an agent you trust, use them. And if the manager's proposed commission is out of line with what other brokers would charge, nothing requires you to accept it. Treat the manager as one candidate for the listing, interview it like any other, and choose on the merits. Perpetual's sell your investment property page sets out what a broker-owned manager brings to that decision.
If you already signed and want to sell another way
Read the clause carefully, because many are narrower than they look. An exclusive right to sell often applies only during the management term, so ending management first, with proper notice, can free the sale. A tenant-sale commission applies only if the tenant buys, so a sale to anyone else is unaffected.
If the clause genuinely covers your situation, ask the company in writing to release it or to reduce the commission; companies often agree in exchange for a smooth handover, because a dispute with a departing owner is bad for business. If it refuses and the amount is significant, have a Texas real estate attorney read the clause before you list elsewhere. This is general information rather than legal advice, and the exact wording decides the outcome. Perpetual's broker page explains how the brokerage and the management company relate, which is the arrangement most owners are really asking about with this question.
How Perpetual handles this
If you want to sell an investment property and are asking whether we offer management or sales services: we do both. Perpetual Property Management is a registered assumed name of Perpetual Realty Group, LLC, a Texas real estate brokerage (TREC broker company license 9008702-BB) led by Broker/Owner Justin Brown, licensed since 2006. Texas requires every license holder to give prospective clients the Information About Brokerage Services form; ours is on the disclosures page.
For a house that is not moving, our rent or sell page lays out four options: lease it through us, list it on the MLS yourself through DirectList, a creative exit such as owner finance or subject-to, or a full-service listing with Perpetual Realty Group. Whoever you choose, ask any manager, us included, to show you every paragraph that mentions a sale before you sign. Our selling investment property page covers occupied and vacant sales.
The takeaway: Nothing about hiring a manager obliges you to sell through them unless the agreement says so, so find the exclusive-right and tenant-commission clauses before signing and then choose your listing broker on the merits.
Questions owners ask
Can my property manager charge a commission if my tenant buys the house?
Only if the management agreement says so. Many agreements include a clause entitling the company to a commission when the property sells to the tenant it placed, on the reasoning that it produced the buyer. The clause is enforceable when clearly written and signed. If it is not in your agreement, no commission is owed. Check the wording for how long the clause lasts after management ends.
Can I sell my rental while it is under a property management agreement?
Yes. The agreement may require notice, may end automatically at closing, or may carry a fee if the sale falls inside a fixed term, but it does not prevent a sale. Read the termination and sale provisions, give whatever notice is required, and plan the handover of the tenant's lease and deposit to the buyer at closing.
Does selling the house end the tenant's lease in Texas?
No. The buyer generally takes the property subject to the existing lease, and the tenant keeps the same rights and obligations through the end of the term. Under Texas Property Code 92.105, the new owner becomes liable for the security deposit from the date title transfers and must give the tenant a signed statement with the exact deposit amount.
Should I use a separate listing agent to sell a rental with a tenant in place?
Use whoever can handle a tenant-occupied sale well. That means respecting the lease's entry terms, presenting the lease and deposit accounting to buyers, and marketing the income to investors. A manager that also runs a strong sales brokerage can do this with the file already in hand. A listing agent who rarely sells occupied rentals may need the manager's help with showings and documents either way.
I want to sell my investment property. Do you offer management or sales services?
Yes, both. Perpetual Property Management handles leasing and management, and Perpetual Realty Group, LLC, our licensed Texas brokerage led by Broker/Owner Justin Brown, handles sales of occupied and vacant rentals. You are not required to sell through us because we manage the home. Call 817-228-6817 to talk through renting versus selling.
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