Property Management
A property manager's primary fiduciary duty is owed to:
AThe tenants
BThe local municipality
CThe property owner (principal)✓ Correct
DThe lender holding the mortgage
Explanation
A property manager acts as an agent of the property owner and owes fiduciary duties primarily to the owner (principal). These duties include loyalty, care, obedience, disclosure, accounting, and confidentiality.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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