A property management firm in Halifax has been managing a residential apartment building for Mr. Green for five years under a written agreement. Mr. Green sells the building to Ms. Brown. What automatically happens to the existing management agreement with Mr. Green?

Question: A property management firm in Halifax has been managing a residential apartment building for Mr. Green for five years under a written agreement. Mr. Green sells the building to Ms. Brown. What automatically happens to the existing management agreement with Mr. Green?

Answer options: ✅ The management agreement with Mr. Green is terminated upon the sale of the property.

• The management agreement is automatically transferred to Ms. Brown.
• The property management firm must continue to manage the property for a minimum of three months for Ms. Brown.
• The property management agreement remains active with Mr. Green until its original expiry date.

Correct answer: The management agreement with Mr. Green is terminated upon the sale of the property.

Explanation: A property management agreement is typically a contract between the property manager (agent) and the owner (principal). When the ownership changes, the original principal no longer has an interest in the property, thereby terminating the agency relationship and the management contract unless explicitly stated otherwise or renegotiated with the new owner.