While some property owners choose to perform both the property and asset manager functions themselves, many commercial property owners choose to employ professional property managers instead. The property manager works under a management contract in which the manager is empowered to serve as the owner's fiduciary. This type of relationship is more commonly referred to as a(n):
A) agency relationship
B) open listing relationship
C) joint-venture
D) correspondent relationship

Question

Quizplus · Accepted Answer

An agency relationship refers to a situation where one party (the principal) gives another party (the agent) the authority to act on their behalf. In this case, the property owner is the principal who gives the property manager the authority to act as their fiduciary and manage the property on their behalf. Therefore, A is the correct answer. The other options, B, C, and D, do not accurately describe this type of relationship.

While Some Property Owners Choose to Perform Both the Property