Vicarious liability makes a property manager responsible for whose actions?

Prepare for the RECA Property Management Exam with multiple choice questions that offer hints and explanations. Ace your exam!

Vicarious liability is a legal principle that holds an individual or organization accountable for the negligent actions of another person when there is a specific relationship between them, such as an employer and employee. In the context of property management, this principle applies to the property manager's responsibility for the actions of their employees.

When a property manager is found to be vicariously liable, it means they can be held responsible for the mistakes or wrongful acts committed by their employees while they are performing their jobs. This is crucial in property management, as employees often interact with tenants, handle financial transactions, and make decisions regarding the maintenance and operations of the property. By holding the property manager liable for their employees' actions, the law ensures accountability and encourages proper training and oversight within the management team.

In contrast, accountability does not typically extend to tenants, other property managers, or brokers from different real estate firms, as these parties do not have the same employer-employee relationship with the property manager. Thus, the responsibility outlined by vicarious liability is specific to employees working under the authority of the property manager.

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