Property Management
A New Mexico property manager discovers a tenant is running an illegal business from the rental unit. The property manager should:
AIgnore it as it is the tenant's private matter
BNotify the property owner, consult legal counsel, serve a notice to cure or vacate, and potentially initiate eviction proceedings✓ Correct
CReport directly to law enforcement without telling the owner
DIncrease the rent to account for the additional use
Explanation
An illegal business operation violates the lease and likely NM law. The property manager's fiduciary duty to the owner requires immediate notification, consultation with legal counsel, and taking steps to address the lease violation — which may include eviction proceedings.
People Also Study
Related New Mexico Questions
- A New Mexico property manager's fiduciary duty to the owner includes which of the following?Property Management
- A New Mexico property manager's fiduciary duty to the property owner includes all of the following EXCEPT:Property Management
- A New Mexico property manager discovers a tenant is subletting the apartment without permission. Unless the lease permits subletting, the landlord may:Property Management
- A New Mexico property manager is authorized to make repairs up to $500 without owner approval. A roof leak is discovered that requires immediate $3,500 repair. The manager should:Property Management
- Which fiduciary duty requires a New Mexico agent to act in the client's best financial interest even at the expense of the agent's own financial gain?Agency
- In New Mexico, which fiduciary duty requires an agent to act with the skill, care, and diligence of a reasonably competent real estate professional?Agency
- A seller's agent in New Mexico has a fiduciary duty to:Agency
- Which fiduciary duty requires an agent to follow all lawful instructions from their principal?Agency
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.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
DRE Regulation
Study This Topic
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →