CRM Legal & Ethical Considerations 5

Question 1

IREM's Code of Professional Ethics requires members to handle all client funds in which manner?

Accepted Answer

Kept in separate trust or escrow accounts distinct from personal and operating funds

Answer

IREM ethics require strict separation of client funds into trust or escrow accounts to prevent commingling and protect client assets.

Question 2

A property manager receives a kickback from a maintenance vendor for referring work. Under IREM's Code of Ethics, this is:

Accepted Answer

A violation unless fully disclosed to and approved by the client

Answer

Undisclosed kickbacks from vendors violate the property manager's fiduciary duty of loyalty; they are only permissible with full client disclosure and consent.

Question 3

Under the Fair Debt Collection Practices Act (FDCPA), which of the following applies to residential property managers collecting rent?

Accepted Answer

FDCPA typically applies to third-party collectors, not landlords collecting their own rents

Answer

The FDCPA primarily applies to third-party debt collectors; landlords collecting their own rents are generally not covered, though state laws may impose similar requirements.

Question 4

A certified residential manager discovers that the property owner is asking the manager to falsify inspection records. The ethical response is to:

Accepted Answer

Refuse and advise the owner of the legal and ethical implications

Answer

Managers must refuse to participate in illegal or unethical acts and should advise the client of the consequences, even at the risk of losing the management contract.

Question 5

Which federal regulation requires property managers to implement a written program to protect tenant information under certain electronic data circumstances?

Accepted Answer

The Gramm-Leach-Bliley Act if financial products are offered

Answer

Managers who offer financial services like insurance or credit products may fall under GLB Act requirements to protect consumers' nonpublic personal financial information.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Legal & Ethical Considerations 5