What is Express Authority?
Express authority is explicitly granted to a condominium manager through a representation agreement or specific decisions made by the condominium board. This form of authority is formal and documented, defining the scope of actions a manager is authorized to perform.
WHAT YOU'LL LEARN
What is Express Authority?
What is Implied Authority?
Comparing Express and Implied Authority
Additional Tips
Key Elements of Express Authority:
The REA Rules: A licensee must "act only within the scope of the authority granted by the client."
Clearly outlined in representation agreements or written instructions from the condominium corporation’s board of directors.
May include tasks such as hiring contractors, managing budgets, or representing the condominium corporation in disputes.
Example of Express Authority:
A condominium board authorizes the manager, via a resolution, to negotiate and sign a contract with a landscaping company.
What is Implied Authority?
Implied authority refers to the actions a condominium manager can take that are not explicitly stated in the representation agreement but are necessary to fulfill their role effectively. This form of authority arises from the manager's responsibilities and the reasonable expectations of the condominium corporation.
Key Elements of Implied Authority:
Implied by Necessity: Managers can take actions essential to performing their duties, even if they are not explicitly stated in the agreement.
Example: Hiring a plumber for an emergency repair to prevent property damage.
Limited by Explicit Instructions: Implied authority cannot override explicit limitations set out in the representation agreement or instructions from the board.
Managers must exercise "reasonable care and skill" in fulfilling their duties, which often involves implied authority to act in urgent situations.
Example of Implied Authority:
A pipe bursts in the building, and the manager arranges for immediate repairs to prevent further damage without obtaining prior board approval.
Comparing Express and Implied Authority
Aspect | Express Authority |
Definition | Authority explicitly granted through representation agreements or board decisions. |
Documentation | Clearly documented in agreements, resolutions, or board instructions. |
Scope | Limited to the specific terms outlined in the representation agreement. |
Example Scenario | A manager is explicitly authorized to approve contracts up to $10,000. |
Limitations | Cannot exceed the authority granted in the representation agreement. |
Aspect | Implied Authority |
Definition | Authority assumed to be necessary to perform duties in the absence of explicit instructions. |
Documentation | Not explicitly documented; arises from the scope of responsibilities and necessity. |
Scope | Broader in scope, covering urgent and necessary actions required to protect the condominium corporation. |
Example Scenario | A manager arranges an emergency elevator repair without prior approval to ensure tenant safety. |
Limitations | Must not conflict with explicit instructions or exceed the manager’s role under the REA Rules. |
Key Consideration:
While both types of authority allow managers to perform their duties, express authority provides clear legal boundaries, while implied authority relies on judgment and reasonableness.
Understanding the difference between express and implied authority is crucial for condominium managers to act within their legal boundaries and maintain compliance with the Real Estate Act Rules. Managers should seek to formalize as much of their authority as possible through clear documentation while exercising caution when acting under implied authority to prevent disputes or liability.
Additional Tips
Always review the representation agreement to understand the scope of express authority granted to you.
Use implied authority only in situations where action is necessary to protect the condominium corporation’s interests.
Document all decisions, even those made under implied authority, to maintain transparency and accountability.
