Property Management
A NH property manager who fails to maintain adequate property insurance coverage for a managed building is liable to the owner for:
ANo liability — insurance is the owner's decision
BBreach of fiduciary duty and potential direct liability for losses that would have been covered✓ Correct
COnly a license reprimand
DLiability only if the owner specifically required insurance
Explanation
A property manager who fails to obtain or maintain required insurance per the management agreement breaches their fiduciary duty. If an uninsured loss occurs, the manager may be personally liable to the owner for the loss.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
Math Concepts
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