Property Management

The management agreement between a property owner and a property manager is:

AAn informal understanding that can be oral
BA formal written contract that establishes the manager's authority and compensation✓ Correct
COnly required for commercial properties
DA government-issued license for the manager

Explanation

A management agreement is a formal written contract that defines the property manager's scope of authority, duties, management fee structure, and duration. It is the legal basis for the manager's agency relationship with the owner.

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