A California licensed property manager is retained under a written management agreement to oversee a 20-unit residential building for an indefinite term. The agreement authorizes the manager to collect rents, enforce lease terms, hire and pay vendors, and approve routine repairs up to $500 without prior owner approval. Under California agency law, how is this property manager classified?
Correct Answer
C) General agent, because the manager has continuing authority to conduct a range of business activities on the owner's behalf
A general agent is authorized to transact all business of a particular kind or in a particular place on behalf of the principal on a continuing basis. A property manager operating under an ongoing management agreement — with authority spanning rent collection, vendor contracts, lease enforcement, and maintenance decisions — fits this definition precisely. Unlike a special agent, whose authority is confined to a single transaction, the property manager's authority is continuous and covers a defined category of business (property operations). California courts and agency law treatises consistently classify property managers in this role as general agents.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
- → When showing a listed residential property of one to four dwelling units to potential buyers, the listing broker is required to disclose:
- → Broker fees deposited with the broker before they are earned are called:
- → A real estate broker is subject to disciplinary action from the Department of Real Estate (DRE) if they:
- → The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
- → When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
- → A seller’s broker needs to disclose:
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → If a 16-year-old emancipated minor wishes to sell real property, their broker may:
- → A broker who fails to promptly disclose their dual agency status is subject to:
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A California real estate licensee is retained solely to locate a buyer for one specific parcel of commercial property. Once that transaction closes, the agency relationship ends. Under California agency law, this licensee is best classified as which type of agent?
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A California seller signs an exclusive right-to-sell listing agreement with Broker X. During the listing period, the seller independently finds a buyer and closes the sale without Broker X's involvement. What is Broker X's commission entitlement?