A property management company in Toronto has an exclusive property management agreement with an owner for a commercial retail plaza. A contractor who regularly performs maintenance for the plaza offers the property manager a 'finder's fee' for any new business referrals. The property manager is considering accepting this offer but is unsure if it's ethical. What is the most appropriate action for the property manager to take?

Question: A property management company in Toronto has an exclusive property management agreement with an owner for a commercial retail plaza. A contractor who regularly performs maintenance for the plaza offers the property manager a 'finder's fee' for any new business referrals. The property manager is considering accepting this offer but is unsure if it's ethical. What is the most appropriate action for the property manager to take?

Answer options:

• Accept the fee if the contractor's prices are competitive and market-rate.
• Decline the fee to avoid any appearance of impropriety.
• Accept the fee but disclose it to the owner on the next financial statement. ✅ Accept the fee if the owner provides written consent after full disclosure of the arrangement.

Correct answer: Accept the fee if the owner provides written consent after full disclosure of the arrangement.

Explanation: To uphold their fiduciary duty and avoid an undisclosed conflict of interest, a property manager must obtain the owner's fully informed and written consent before accepting any benefit from a third party related to their management duties.