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?
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
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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Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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