CAM Professional Ethics and Standards 3 — Questions and Answers
Question 1: A manager learns that an owner wants to implement a policy that would indirectly discriminate against families with children. The ethical obligation of the CAM is to:
- Implement the policy because the owner's instructions must be followed
- Advise the owner that the policy violates Fair Housing law and refuse to implement it (Correct answer)
- Implement the policy but document objections in writing
- Seek a legal opinion before responding to the owner
Correct answer: Advise the owner that the policy violates Fair Housing law and refuse to implement it
CAMs have an ethical and legal duty to refuse implementing policies that violate Fair Housing Act protections, including familial status discrimination.
Question 2: Which of the following best describes the concept of 'fiduciary duty' as it applies to a CAM?
- The duty to maximize rental income regardless of ethical constraints
- The obligation to act in the best financial and legal interests of the property owner (Correct answer)
- The responsibility to prioritize resident satisfaction above owner interests
- The requirement to report all maintenance issues to local authorities
Correct answer: The obligation to act in the best financial and legal interests of the property owner
Fiduciary duty obligates a CAM to act in the best financial and legal interests of the property owner while maintaining ethical standards.
Question 3: A CAM candidate padding their resume with credentials they have not earned violates which ethical principle?
- Duty of care
- Honesty and integrity (Correct answer)
- Confidentiality
- Conflict of interest rules
Correct answer: Honesty and integrity
Misrepresenting credentials violates the fundamental ethical principle of honesty and integrity required in professional practice.
Question 4: When managing a property where the owner is also a personal friend, a CAM should:
- Apply more lenient standards because of the personal relationship
- Maintain the same professional standards as with any other client (Correct answer)
- Disclose all resident information freely since the owner is a friend
- Prioritize the friendship over professional obligations when conflicts arise
Correct answer: Maintain the same professional standards as with any other client
Professional standards must be maintained consistently regardless of personal relationships with property owners.
Question 5: A competing property manager offers to share their rent roll data if you share yours. Sharing this confidential data would be:
- Acceptable if both managers agree in writing
- A violation of confidentiality obligations to your owner (Correct answer)
- Standard practice in the property management industry
- Permitted under IREM guidelines for professional networking
Correct answer: A violation of confidentiality obligations to your owner
Sharing confidential rent roll data with competitors violates your confidentiality obligation to the property owner.
Question 6: Ethical handling of security deposits requires a CAM to:
- Deposit them into the property's general operating account for convenience
- Keep them in a separate escrow or trust account as required by state law (Correct answer)
- Use them to cover emergency maintenance when cash flow is tight
- Transfer them to the owner upon collection
Correct answer: Keep them in a separate escrow or trust account as required by state law
Security deposits must be held in separate escrow or trust accounts as required by most state laws to protect residents' funds.
Question 7: A CAM who discovers that their property has an unreported building code violation should:
- Delay reporting to avoid negative consequences for the owner
- Immediately notify the owner and take steps to correct the violation (Correct answer)
- Wait for a scheduled inspection before addressing the issue
- Only report if a resident formally complains about the violation
Correct answer: Immediately notify the owner and take steps to correct the violation
Ethical property management requires promptly notifying the owner of code violations and taking corrective action to ensure legal compliance and resident safety.
CAM Professional Ethics and Standards 3
A manager learns that an owner wants to implement a policy that would indirectly discriminate against families with children.
The ethical obligation of the CAM is to: