Property ManagementIntermediateCalifornia Exam

An owner hires a property manager and grants them 'general authority.' This means the manager may:

ASell the property without owner consent, per standard property management industry practice
BPerform a broad range of management functions as authorized in the management agreementCorrect
CEnter into mortgage agreements on behalf of the owner, under standard California property management practice
DTransfer title to the property, as typically required in a residential lease

Why Perform a broad range of management functions as authorized in the management agreement Is Correct

Answer B: Perform a broad range of management functions as authorized in the management agreement

General authority in property management allows the manager to perform routine management tasks within the scope defined by the management agreement — such as leasing units, collecting rent, and arranging maintenance — but does not extend to extraordinary acts like selling the property.

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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