Property Management
A Vermont property manager who accepts a rent payment from a tenant and fails to forward it to the property owner within a reasonable time is:
AActing within normal cash flow management practices
BPotentially converting client funds — a serious violation of fiduciary duty and possibly criminal law✓ Correct
CEntitled to hold funds during a dispute
DActing reasonably if they inform the owner
Explanation
Failing to forward collected rents to the property owner is a breach of fiduciary duty and may constitute conversion (unlawful taking) of client funds. Vermont license law requires prompt accounting and disbursement of client funds. This can result in license revocation and criminal prosecution.
Related Vermont Property Management Questions
- Vermont's 'property management software' and digital record-keeping for trust accounts must:
- Vermont's warranty of habitability requires a residential landlord to:
- Vermont requires a landlord to return a residential security deposit within how many days after the tenant vacates?
- Vermont's requirement for smoke and carbon monoxide detectors in rental housing means landlords must:
- Vermont's rental registry program, where implemented by municipalities, requires landlords to:
- Vermont's Uniform Residential Landlord-Tenant Act requires a written rental agreement when:
- A Vermont property management contract typically grants the property manager authority to:
- A Vermont landlord may terminate a month-to-month tenancy by providing:
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