IREM Certified Property Manager (CPM) Practice Test 2025 – All-in-One Guide to Exam Success!

The obligation that property managers have towards former clients centers on the principle of loyalty. Maintaining loyalty to former clients means that property managers should respect the confidentiality and terms established in previous agreements as long as this loyalty does not conflict with their current obligations to other clients. This is rooted in ethical practices and the duty to uphold trust established during the professional relationship.

In practice, this means that a property manager should not disclose sensitive information or act in a way that could harm the interests of a former client, unless these actions contradict their responsibilities to current clients or violate current agreements. Upholding this loyalty reinforces professional integrity and fosters a reputation for reliability and ethical conduct within the industry.

In contrast, ignoring previous agreements would undermine trust and could lead to legal repercussions. Prioritizing former clients over current ones would disrupt the balance of responsibilities and could lead to conflicts of interest. Seeking approval from former clients for new agreements may not always be feasible or necessary, as the ongoing duties are bound by the original agreements and the current context of obligations. Thus, ensuring loyalty while managing multiple relationships is crucial for a property manager's ethical and professional standing.