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Property Management Licensing Practice Exam · Question

Maria, a property manager in Ottawa, is managing a rental property for a long-distance owner. The furnace in the property fails in December. Maria obtains two quotes for replacement but decides to hire a contractor who is a personal friend, whose quote is slightly higher than another qualified local contractor's quote. Maria justifies this because her friend can start immediately. She doesn't disclose the personal connection or the higher cost to the owner, simply presenting the invoice for payment. Which ethical principle has Maria breached?

Maria has breached her fiduciary duty to act solely in the best interests of her client. By choosing a more expensive contractor due to a personal relationship

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Question: Maria, a property manager in Ottawa, is managing a rental property for a long-distance owner. The furnace in the property fails in December. Maria obtains two quotes for replacement but decides to hire a contractor who is a personal friend, whose quote is slightly higher than another qualified local contractor's quote. Maria justifies this because her friend can start immediately. She doesn't disclose the personal connection or the higher cost to the owner, simply presenting the invoice for payment. Which ethical principle has Maria breached?

Answer options:

  • Confidentiality
  • Advertisement accuracy
  • Honest Dealing ✅ Fiduciary duty

Correct answer: Fiduciary duty

Explanation: Maria has breached her fiduciary duty to act solely in the best interests of her client. By choosing a more expensive contractor due to a personal relationship without disclosing this or justifying the additional cost based on urgency to the owner, she has put her personal interest (or that of her friend) ahead of her client's financial interest.

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