Real Estate Property Asset Management Practice Test

The developer of the project typically enters into the initial management agreement for a new condominium. This is because the developer is responsible for the establishment of the condominium project, including its overall management and operational setup during the period before the owners' association is fully established and operational. At this stage, the developer will often hire a property management company to handle day-to-day operations, maintenance, and administration. This initial agreement outlines the management structure, responsibilities, and fees associated with the management of the condominium. The involvement of the developer is essential in this context, as they possess the necessary control and insight into the project to ensure that the management aligns with the development goals. Once the condominium association is formed and the owners take control, the management agreement may be revisited or renegotiated.