Property Management

A West Virginia property manager discovers the owner has stopped paying the building's mortgage and the lender has begun foreclosure proceedings. The manager should:

AContinue managing the property without disclosing to tenants
BNotify tenants of the foreclosure situation as required and consult the owner and possibly an attorney✓ Correct
CImmediately terminate all leases and vacate the tenants
DAssume management on behalf of the lender

Explanation

When a managed property faces foreclosure, the property manager has a duty to the owner (client) to keep them informed and may need to consult an attorney regarding obligations to tenants. Depending on circumstances, tenants may also need notification.

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