Jolee,
> I have tried creating a filtered query but it did not work.
It is the right thing to do to have a query with a condition like 'Property IN Client.Properties' for filtering available values for the Property attribute. The reason it did not work is that drop-downs on forms are not dynamically updated if an attribute on which their query depends is updated without living the form. In other words, when you select a different client from the Client dropdown, the list of properties in the Property dropdown is not updated.
You have two options. One is to use the Table Of Items presentation for Client and the Dropdown presentation for Property. When you select a client on a separate page, the Property dropdown will be updated when you return to the original page.
The other option is to continue to use the Dropdown presentation for both attributes, but place the attributes on separate sections of the form. Then you can select a client on one section and switch to the other section to see the updated list of properties for the client. Note that multi-section forms support two navigation styles: tabbed and wizard. The latter style is especially useful for creating new objects when the user is guided through a sequence of form sections. This way a distributor can be selected on the first section from a dropdown, a client on the second from a dropdown filtered on distributor, and a property on the third from a dropdown filtered on client.
You can also define different forms for creation and editing a business object, so that the system uses a wizard-like form for registering new objects and a tabbed (or a single-section) form for viewing/editing existing objects.