Which statement accurately reflects the provision of management agreements?

The statement that the agreement defines the rights and obligations of the manager and principal is accurate because management agreements are legal documents that outline the specific roles, responsibilities, and expectations for both parties involved in property management. This includes detailing the scope of the manager's authority to make decisions on behalf of the property owner, such as rent collection, maintenance, and tenant management, while also stating the obligations of the principal, such as providing necessary resources or information.

This clarity is essential for establishing a solid working relationship, minimizing misunderstandings, and ensuring that both the manager and the property owner are aware of their commitments. The other options either misconstrue the nature of management authority or violate typical protocols involved in property management practices. For instance, listing and selling properties typically requires a separate agreement, security deposits should be handled in a separate trust account for accountability, and checking tenant credit is a standard procedure for assessing potential tenants' financial reliability.