All correctly describe listing brokers and property managers except:
Correct Answer
C) Both typically have limited authority to bind principals
Answer C is the EXCEPTION — the statement that is NOT correct — because a property manager operating as a general agent typically has broad, ongoing authority to bind the principal in day-to-day matters such as executing leases, hiring contractors, and collecting rent, which is far more expansive than 'limited authority.' In contrast, a listing broker as a special agent does have limited authority, so the statement is only half-accurate, making it the incorrect characterization when applied to both roles equally.
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More Laws Of Agency Fiduciary Duties Questions
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