Property Management
A Vermont property manager who collects a management fee from the owner while also receiving undisclosed referral payments from vendors is:
AActing within standard property management practice
BViolating their fiduciary duty to the owner through undisclosed self-dealing✓ Correct
CEntitled to additional compensation for vendor coordination
DOnly required to disclose payments exceeding $500
Explanation
Property managers owe a fiduciary duty to property owners. Accepting undisclosed payments from vendors creates a conflict of interest and violates the duty of loyalty and disclosure.
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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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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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