Property Management
A Montana property manager preparing an annual statement for the property owner should include:
AOnly the total rents collected
BA detailed accounting of all income received, expenses paid, and owner distributions during the period✓ Correct
COnly expenses over $500
DA summary of fair housing complaints only
Explanation
Property managers have a fiduciary duty to account to the owner. Annual statements should include a detailed accounting of all income (rents, late fees), expenses (repairs, management fees, taxes), and distributions to the owner.
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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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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