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
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A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled 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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