A property manager deposits tenant security deposits into the manager's personal checking account and uses the funds to pay personal bills. What fiduciary duty has the manager violated?
Correct Answer
D) Accountability
Accountability requires the agent to safeguard and properly account for money entrusted to them. Depositing tenant funds into a personal account and using them for personal expenses is a clear violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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A residential tenant discovers that the plumbing does not deliver safe drinking water and the roof leaks during every rain. The tenant demands repairs. The landlord ignores the request for two months. What legal doctrine requires the landlord to fix these conditions?
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A property management agreement authorizes the manager to spend up to $500 on emergency repairs without prior owner approval. A pipe bursts and the repair costs $450. The manager hires a plumber immediately. Has the manager acted properly?