Property Management

A property manager who negotiates a lease for a commercial tenant without the owner's knowledge or authorization is acting:

AWithin their general authority as property manager
BOutside their authority, and the owner may not be bound by the lease✓ Correct
CWithin their fiduciary duty to the tenant
DLawfully if the lease terms are favorable

Explanation

A property manager's authority is defined by the management agreement. Acting outside that authority (such as executing leases without authorization) may not bind the owner and exposes the manager to liability.

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