Property Management
A property manager's fiduciary duty to the property owner includes:
AMaximizing occupancy at any rent level the manager chooses
BActing in the owner's best financial interests and properly accounting for all funds✓ Correct
CAllowing all tenants to sublet without owner approval
DSetting rental rates based on the manager's personal opinion only
Explanation
A property manager, as the owner's agent, owes fiduciary duties including loyalty, care, and accounting — meaning all funds must be properly handled and reported, and decisions made in the owner's best interest.
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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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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