California Real Estate Brokers acting as lawyers in Small Claims Court?

Can a real estate broker represent a California property owner in a small claims court in a dispute involving the property?

Yes.  Under the California Code of Civil Procedure, there is a way that a real estate broker (property management) can represent the property owner.

California Code of Civil Procedure Section 116.540

CCP 116.540 states:

(h) A party who is an owner of rental real property may appear and participate in a small claims action through a property agent under contract with the owner to manage the rental of that property, if :

(1) the owner has retained the property agent principally to manage the rental of that property and not principally to represent the owner in small claims court,

and

(2) the claim relates to the rental property.

This section allows a California property management company to appear in small claims court on behalf of the owner of the property in landlord-tenant related lawsuits.

Should a property owner represent an owner in small claims court?

This could be a source of revenue for the property management broker, but could also present risks of negligence, and breach of fiduciary duty.

Listen to the show as Attorney Steve describes the legal risks.

Do I need a special clause for small claims representation in my broker property management agreements?

It would be wise, listen to the show to hear Attorney Steve's general comments on this topic.