Property Management
A property manager who uses owner funds for personal expenses has committed:
AAn error of omission
BConversion (misappropriation of funds)✓ Correct
CA breach of the management agreement's expense clause
DAn accounting irregularity
Explanation
Using owner funds for personal purposes is conversion — the illegal misappropriation of another's property or funds. This is a serious breach of fiduciary duty and a violation of Rhode Island license law that can result in license revocation.
Related Rhode Island Property Management Questions
- In Rhode Island, what is 'periodic tenancy'?
- The management agreement between a property owner and a property manager is:
- Rhode Island security deposit law limits the amount a landlord may collect from a residential tenant to:
- What does 'net lease' mean in Rhode Island commercial property management?
- A percentage lease ties the tenant's rent to:
- In Rhode Island, a property manager who manages properties for others for compensation must hold:
- A commercial net lease most often used in freestanding retail buildings where the tenant pays virtually all costs is called a:
- Which of the following is a key component of a Rhode Island residential lease agreement?
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 →