Minnesota License Law

A Minnesota broker is hired to manage a commercial property but the management agreement does not specifically authorize the broker to sign leases on behalf of the owner. Can the broker sign a 5-year lease?

AYes, since management authority implies lease authority
BNo, the broker needs specific written authorization to sign leases binding the owner✓ Correct
CYes, as long as the lease is under $100,000/year
DOnly with verbal authorization from the owner

Explanation

A property management agreement gives authority only for what is specifically authorized. Signing a 5-year lease on behalf of the owner is a significant legal commitment that requires specific written authority. Without explicit authorization, the broker could be acting beyond their scope of authority, potentially creating an unenforceable lease and personal liability.

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