Property Management
In Michigan, a property manager who receives a gift or referral fee from a contractor performing work on a managed property must:
AAccept it as normal business courtesy
BDisclose it to the property owner, as it creates a potential conflict of interest✓ Correct
CReport it to LARA immediately
DDonate it to charity
Explanation
A property manager who receives undisclosed compensation from contractors (kickbacks) creates a conflict of interest that breaches the fiduciary duty to the owner. Disclosure to the owner is required; undisclosed kickbacks violate Michigan license law.
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