Property Management

A property manager who receives compensation from a vendor for recommending the vendor's services to the property owner has committed:

AAn acceptable business practice
BA conflict of interest and possible breach of fiduciary duty✓ Correct
CA violation of zoning law
DA minor administrative violation only

Explanation

A property manager owes fiduciary duties to the property owner. Receiving undisclosed compensation from vendors creates a conflict of interest and breaches the duty of loyalty.

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