"A managing agent holds a position of trust with respect to its cooperative clients and as such has a fiduciary duty to protect the cooperative’s financial interests," says real estate attorney Jeffrey Reich. "Given its position of trust and fiduciary duties it would be improper for an agent to accept any form of compensation or favors from a vendor it recommends to its board client, unless the compensation and/or favor was fully disclosed to the board and the vendor's price to the cooperative was commercially reasonable and competitive in all respects."
Along these lines, says Reich, all vendor contracts should include a representation by the vendor that it offered no compensation to any party in connection with the solicitation of the contract.
If asked, a managing agent has a duty to disclose compensation or anything of value he or she may have received in connection to a particular contract with a vendor.
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