A property manager decides to rent a vacant unit in the building she manages to her own family member at below-market rent without informing the property owner. What agency violation has the manager committed?
Correct Answer
A) A violation of the duty of loyalty and disclosure, because the manager failed to disclose a conflict of interest and acted for personal benefit without the owner's knowledge
Renting to a family member at below-market rent without disclosure creates a conflict of interest. The manager violated the duty of loyalty (by prioritizing personal interests over the owner's) and the duty of disclosure (by failing to inform the owner of the conflict).
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