Property Management
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 authority✓ Correct
CThe lease is automatically ratified when the tenant moves in
DThe lease is void and the manager may face criminal charges
Explanation
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. A management agreement should clearly define what authority the manager has.
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