Property Management
In Washington, a property manager who manages 10 or more residential units should have which type of insurance to protect against errors in property management?
ATitle insurance
BErrors and omissions (E&O) / professional liability insurance✓ Correct
CFlood insurance
DWorkers' compensation only
Explanation
Errors and omissions (E&O) insurance (professional liability insurance) protects property managers against claims arising from negligent acts, errors, or omissions in the performance of their professional duties — critical for those managing multiple units.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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