Property Management
A Connecticut property management company manages a residential property for an out-of-state owner. The company's fiduciary duties include placing the owner's interests first. If the manager discovers an opportunity to purchase the managed property for themselves, they should:
APurchase the property quickly since they have inside knowledge
BDisclose the opportunity to the property owner first and not pursue it unless the owner has had the opportunity to consider and decline✓ Correct
CResign from the management contract and then purchase the property
DPurchase it under a relative's name
Explanation
The property manager owes a fiduciary duty of loyalty to the owner. Using inside information to purchase a property being managed for the owner without disclosure violates this duty. The manager must disclose the opportunity to the owner first.
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