Property Management
A Tennessee property manager receives a rent payment from a tenant that includes a $50 late fee. The manager should:
AKeep the late fee as additional compensation
BAccount for the late fee according to the property management agreement terms✓ Correct
CImmediately refund the late fee to the tenant
DDeposit the late fee in the tenant's security deposit account
Explanation
How late fees are handled depends on the property management agreement. Typically, they go to the property owner unless the agreement specifies otherwise.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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