Property Management

A Kentucky commercial property manager negotiates a new 5-year lease with a major tenant. For a transaction of this size, the manager should:

AComplete the negotiation independently as authorized by the management agreement
BObtain specific written authorization from the property owner✓ Correct
CFile the lease with KREC before it becomes effective
DHave the tenant's attorney review the lease without owner involvement

Explanation

Major transactions that go beyond routine management duties typically require specific written authorization from the property owner. The property manager's general management agreement may not encompass authority to execute long-term leases without specific owner approval.

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