Property Management

A property manager who receives a commission from a vendor for referring a contractor to the property owner must:

ARemit the commission to the property owner
BKeep it confidential from the owner
CDisclose the referral arrangement to the property owner✓ Correct
DDonate the commission to a local charity

Explanation

A property manager acting as an agent owes a fiduciary duty of loyalty and disclosure to the property owner. Receiving undisclosed compensation (kickbacks) from vendors creates a conflict of interest and violates the agent's fiduciary duty. The manager must disclose such arrangements, and in many cases remit the commission to the owner.

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