PSI Virginia Real Estate Practice Exam

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Prepare for the PSI Virginia Real Estate Exam with comprehensive quizzes. Study using flashcards and multiple-choice questions, complete with hints and explanations. Ace your exam with confidence!

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What is a fiduciary duty as it pertains to property managers?

A duty to act in the best interests of clients
A duty to maintain the property
A duty to manage finances
A duty to comply with local laws

The correct answer is: A duty to act in the best interests of clients

A fiduciary duty, in the context of property managers, refers to the obligation to act in the best interests of their clients. This relationship is built on trust and confidence, where the property manager must prioritize the client's needs and objectives above their own. The essence of fiduciary duty is to ensure that the client is served fully and honestly, which includes making informed decisions that align with the client’s goals in managing the property. While maintaining the property, managing finances, and complying with local laws are important responsibilities of a property manager, these tasks are performed within the framework of the fiduciary duty. It is the duty to act with loyalty, care, and full disclosure that defines the fiduciary relationship. Therefore, the foundation of effective property management lies in this commitment to put the client's interests first.