Property Management
A North Dakota property manager who accepts a management contract for a building they know has significant deferred maintenance should:
AAccept without disclosing the issues to the owner
BClearly communicate the property's condition to the owner and develop a plan to address deferred maintenance✓ Correct
CCharge extra fees without the owner's knowledge to fund repairs
DDecline the contract to avoid liability
Explanation
A professional property manager should be transparent with the owner about the property's condition when taking on a new management contract. This includes identifying deferred maintenance, estimating costs, and recommending a realistic plan for bringing the property up to standard to protect the owner's investment.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
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.
State-Specific Concepts
DRE Regulation
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