Property Management

A property manager who hires a contractor for repairs that cost more than the management agreement's authorized limit without owner approval is:

AFulfilling their duty of care
BExceeding their authority and potentially breaching fiduciary duty✓ Correct
CRequired to do so by law
DProtected under the management agreement automatically

Explanation

A property manager has only the authority granted in the management agreement; exceeding spending limits without owner approval may constitute a breach of fiduciary duty.

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