Which of the following is NOT normally part of a property manager's obligations to the owner?
Correct Answer
D) Guaranteeing a minimum occupancy rate for the building
A property manager owes the owner an agent's duties: to account for money and documents handled, to act with reasonable care and skill in operating the property, and to keep the owner's funds out of the manager's own accounts. Filling vacancies is an obligation of effort, measured by diligent marketing and sound leasing practice, not a promise of results. A manager who guaranteed a level of occupancy would be taking on market risk that belongs to the owner.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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