Property ManagementIntermediateCalifornia Exam

A property manager executes a lease on behalf of an owner without written authorization from the owner. Which of the following best describes this situation?

AThe lease is valid because property managers have implied authority to execute leases
BThe lease is voidable at the owner's option because the manager acted without authorityCorrect
CThe lease is automatically ratified when the tenant moves in
DThe lease is void and the manager may face criminal charges

Why The lease is voidable at the owner's option because the manager acted without authority Is Correct

Answer B: The lease is voidable at the owner's option because the manager acted without authority

A property manager acting without written authorization from the owner lacks actual authority to bind the owner. The lease may be voidable at the owner's option, and the manager could face DRE disciplinary action.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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