Property Management
A property manager's primary fiduciary duty is owed to:
AThe tenants occupying the property
BThe property owner (client/principal)✓ Correct
CThe local municipality
DTREC equally with the owner
Explanation
A property manager acts as an agent for the property owner and owes fiduciary duties — loyalty, obedience, disclosure, confidentiality, and accounting — to the owner as the principal. Duties to tenants are limited to honest and fair dealing.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
State-Specific Concepts
TREC Regulation
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