Property Management

A property manager discovers that the HVAC system needs immediate emergency repair costing $4,500, but the management agreement limits single expenditures to $2,000 without owner approval. The manager should:

ARefuse to authorize any repair until the owner responds
BAuthorize the emergency repair to protect the property and notify the owner immediately✓ Correct
CReduce the scope of repairs to stay within $2,000
DTerminate the management agreement

Explanation

Property managers have implied authority to take emergency action to protect the owner's property; the manager should authorize the emergency repair and notify the owner as quickly as possible.

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