Property ManagementIntermediateCalifornia Exam

A property manager notices visible mold in a rental unit and the landlord instructs the manager to paint over it without disclosing the issue to a prospective tenant. What should the property manager do?

AFollow the owner's instructions, since the owner is the principal
BRefuse to conceal the mold and disclose the known condition to prospective tenantsCorrect
CPaint over the mold and note the situation in internal files only
DTerminate the lease of the existing tenant and renovate

Why Refuse to conceal the mold and disclose the known condition to prospective tenants Is Correct

Answer B: Refuse to conceal the mold and disclose the known condition to prospective tenants

A property manager has an ethical and legal duty to disclose known material defects, including mold, to prospective tenants. Following an owner's instruction to conceal a material defect would violate the manager's duties under California law and expose both the manager and owner to liability.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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