Property Management
A Minnesota property manager's management agreement has expired. The property owner has not signed a renewal. The manager continues to collect rents for another month. This creates:
AA month-to-month management agreement by implication
BUnauthorized management that could expose the manager to liability✓ Correct
CAn automatic 6-month renewal under Minnesota law
DA valid management relationship since money was accepted
Explanation
Continuing to manage property after a management agreement expires without a renewal creates unauthorized management. The manager is acting without proper contractual authority, which could expose them to liability.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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