Property Management

In Louisiana, which of the following is an example of a property manager exceeding their authority under the management agreement?

AAuthorizing a $500 plumbing repair within their pre-approved spending limit
BSigning a new 5-year commercial lease without the owner's specific authorization when the agreement requires owner approval for leases over 1 year✓ Correct
CSending a delinquency notice to a late-paying tenant
DConducting the annual property inspection

Explanation

Most management agreements specify that leases above a certain duration require owner approval. Signing a 5-year lease without required owner authorization exceeds the manager's delegated authority and could expose both the manager and owner to legal complications.

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