In property management, what's the legal and binding contract that spells out the duties for both the property manager and property owner?

Answer: A Property Management Agreement

Explanation: A Property Management Agreement is a legally binding contract between a property owner and a property manager which details the duties and responsibilities of the two parties.

A property owner is an individual or company that has owners right to the property. He is responsible for payment of rates and taxes that arise. While property managers may be responsible for finding and screening prospective tenants.

Note that a property owner may decide to manage his property himself but in a situation where he decides not to, he requests the services of a property manager to handle that task. In such a situation, a Property Management Agreement is prepared and is binding.