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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