Property Management

A Texas property manager discovers that a rental home they manage has an unpermitted addition built by a previous owner. The manager's obligations include:

AIgnoring the issue since it was done by a previous owner
BDisclosing the unpermitted addition to the owner and potential tenants, and recommending that the owner address the permitting issue✓ Correct
CDemolishing the addition immediately
DReporting the previous owner to TREC

Explanation

Unpermitted construction is a material fact that can affect safety, insurance, and property value. The property manager should disclose this information to the owner and advise them to consult with local building authorities about legalizing the addition or obtaining permits retroactively. The condition may also need to be disclosed to prospective tenants.

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