Illinois Leasing Agent Practice Exam

When acting as a property manager, what must a licensee avoid doing?

1. Making independent contracts

2. Charging management fees

3. Profiting from private contracts at the owner's expense

4. Disclosing tenant information

The correct answer is: Profiting from private contracts at the owner's expense

When acting as a property manager, a licensee must avoid profiting from private contracts at the owner's expense. This means that a property manager should not enter into any agreements or business dealings that would result in personal financial gain while neglecting or undermining the best interests of the property owner. The role of a property manager is to act as a fiduciary, which includes the responsibility to manage the property diligently and transparently, ensuring that all actions benefit the property owner. Engaging in behavior that prioritizes personal profit over the owner's interests can lead to a conflict of interest, potential legal issues, and damage to the trust required in the property management relationship. It is essential for property managers to maintain ethical standards and transparency in all dealings related to property management to ensure compliance with legal and professional obligations. The other options revolve around activities that are either permissible within certain contexts or unrelated to the core ethical considerations of property management. For example, charging management fees is a standard practice in property management, as it compensates the manager for their services. Making independent contracts can sometimes be necessary for the property manager to execute tasks related to property management effectively, provided it is done within the guidelines established by the owner. Disclosing tenant information is heavily regulated and should