Property Management
A property manager who fails to maintain adequate insurance on a managed property may be found:
ANegligent and personally liable to the owner for resulting losses✓ Correct
BIn compliance if the owner did not specifically request insurance
CProtected under the management agreement's liability waiver
DOnly liable if the property is damaged by fire
Explanation
A property manager who fails to maintain required insurance (as specified in the management agreement or by reasonable professional standards) may be found negligent and personally liable to the owner for losses that insurance would have covered.
People Also Study
Related Rhode Island Questions
- The management agreement between a property owner and a property manager is:Property Management
- A Rhode Island property manager who signs a management agreement with a property owner has entered into which type of agency relationship?Property Management
- A Rhode Island landlord fails to return a tenant's security deposit within the required timeframe without justification. The landlord may be liable for:Property Management
- A Rhode Island property manager charges a 9% management fee and a one-month leasing fee on a property with monthly rents of $2,800. Assuming a new tenant is placed and the property is managed for 12 months, what is the total fee for the year?Real Estate Math
- A property manager who uses owner funds for personal expenses has committed:Property Management
Key Terms to Know
Listing Agreement
A 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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →