Property Management
A Washington property manager's management agreement is terminated by the owner. The manager continues to collect rents for 30 days after termination without authorization. The manager has committed:
AA contract dispute only
BConversion (civil) and potentially embezzlement (criminal)✓ Correct
CA breach of fiduciary duty only
DAn administrative violation requiring a warning letter
Explanation
Collecting and retaining rents after the management agreement is terminated and without authorization is conversion — the wrongful taking of another's property. It may also constitute criminal embezzlement depending on the circumstances.
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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.
Purchase AgreementA 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.
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