What type of negligence occurs when a broker allows a tenant to move in without proper insurance?

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

The scenario described involves a broker allowing a tenant to move in without proper insurance, which indicates a failure to take necessary precautions to protect the tenant and the property. This situation falls under a lack of care in fulfilling duties, as the broker has a responsibility to ensure that tenants are adequately protected by having the requisite insurance before moving in.

In the context of property management, brokers are expected to demonstrate a standard of care, which includes verifying that tenants are carrying adequate insurance. By neglecting this duty, the broker is exhibiting a lack of due diligence which could lead to potential financial harm to either the tenant or the property owner. This demonstrates that the broker did not exercise the appropriate level of caution and attention expected in their role. Thus, this type of negligence is characterized by a failure to act in accordance with established industry standards for tenant safety and security.

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