Property Management
A property manager who hires contractors for repairs exceeding the authorized spending limit must:
AProceed if the work is necessary
BObtain owner approval before committing to work above the authorized limit✓ Correct
CPay the excess from their own funds
DGet GREC approval
Explanation
The property manager's authority is limited to the spending authorization in the management agreement. Exceeding this limit without owner approval is acting outside the scope of authority and could create personal liability.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
GREC Regulation
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