Property Management

A Montana property manager who acts outside the scope of authority granted in the management agreement may expose the property owner to liability because:

AThe manager has apparent authority for all actions
BUnauthorized acts may still bind the owner under agency law if the third party reasonably relied on the manager's apparent authority✓ Correct
CThe manager has no liability regardless of authority
DMontana law does not recognize property management agreements

Explanation

Under agency law, even unauthorized acts by a property manager may bind the owner if a third party reasonably relied on the manager's apparent authority. Owners should clearly define and monitor the scope of authority they grant.

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