Property Management

A NC property manager who discovers the owner has been collecting rents directly and not reporting income may have concerns about:

ATax evasion, which the manager should not participate in✓ Correct
BIt is acceptable as a business decision
CA RESPA violation
DOnly the management contract being breached

Explanation

A property manager who becomes aware of potential tax fraud (unreported income) should not participate in or facilitate the fraud. The manager may need to consult legal counsel and possibly withdraw from the management relationship.

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