Question

A property management company has a management agreement that is good for one year, and automatically renews for an additional year, unless the owner gives written notice of termination. In Illinois, this is:

a) Legal, as long as the seller agrees.
b) Legal, as long as the notification period is 30 days or less.
c) Illegal under any circumstances.
d) Illegal, unless a special disclosure form is signed.

Answer 1

In Illinois, a property management agreement automatically renews unless the owner provides written notice of termination. The agreement is legal as long as the notification period is 30 days or less.

Step-by-step explanation:

In Illinois, a property management agreement that automatically renews for an additional year, unless the owner gives written notice of termination, is legal as long as the notification period is 30 days or less. This means that if the owner wants to terminate the agreement, they must provide written notice to the property management company at least 30 days before the end of the current agreement. If the owner fails to provide this notice, the agreement will automatically renew for an additional year.