Property Management

A Kansas property manager discovers the property owner is committing mortgage fraud by inflating rental income on refinancing applications. The manager should:

AParticipate since they are just following orders
BRefuse to participate and may need to terminate the management relationship, potentially reporting the fraud✓ Correct
CReport only to KREC, not to lenders
DAllow it once but document it for future reference

Explanation

Participating in mortgage fraud is a serious federal crime. The manager must refuse to participate and may have legal obligations to report the fraud, and should likely terminate the management relationship.

Related Kansas Property Management Questions

Practice More Kansas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Kansas Quiz →