General and Specific Authority in Condominium Management in Alberta
General authority refers to the broad scope of actions a condominium manager may undertake based on their role and the relationship established with a condominium corporation.
WHAT YOU'LL LEARN
General Authority in Condominium Management Practice and Agency Law
Specific Authority in Condominium Management
Exercising Specific Authority in Client Affairs
Additional Tips
General Authority in Condominium Management Practice and Agency Law
General authority refers to the broad scope of actions a condominium manager may undertake based on their role and the relationship established with a condominium corporation. This authority is derived from agency law principles and the representation agreement signed between the manager and the client.
Key Aspects of General Authority:
A licensee must "act only within the scope of the authority granted by the client."
General authority allows managers to perform routine tasks required to fulfill their responsibilities, such as managing day-to-day operations or communicating with unit owners.
It does not extend to decisions that require specific authority or approval from the board.
Examples of General Authority:
Sending notices to unit owners about upcoming maintenance.
Responding to tenant inquiries or complaints.
Overseeing the regular cleaning and upkeep of common areas.
Specific Authority in Condominium Management
Specific authority refers to explicit approval or instructions granted by the condominium corporation’s board of directors for particular tasks or decisions. This type of authority is often required for actions that involve significant financial or legal implications.
How Specific Authority is Granted:
Through representation agreements, board resolutions, or written instructions.
The REA Rules: Licensees must "exercise reasonable care and skill in providing services to, and on behalf of, their clients."
Managers are required to document specific authority in writing to ensure clarity and compliance with the Real Estate Act Rules.
Implications for Day-to-Day Decision-Making:
Managers must seek specific authority for tasks that exceed their general authority, such as:
Approving vendor contracts over a specified dollar limit.
Undertaking major repairs or renovations.
Filing legal claims on behalf of the condominium corporation.
Key Considerations:
Without specific authority, managers risk exceeding their scope of representation, potentially leading to personal liability or regulatory consequences.
Exercising Specific Authority in Client Affairs
To demonstrate the application of specific authority, managers must act within the framework of their agreements and ensure all actions align with the condominium corporation’s instructions.
Scenario: Approving Vendor Contracts
Representation Agreement: The condominium board authorizes the manager to approve contracts up to $5,000 without prior approval.
Manager’s Action:
A landscaping company provides a proposal for $4,500.
The manager reviews the proposal, ensures it aligns with the budget, and approves the contract without consulting the board.
Outcome: The manager acted within their specific authority as outlined in the representation agreement.
Key Steps for Managers:
Always confirm the limits of their authority in writing.
Obtain board approval for actions that exceed these limits.
Maintain clear documentation of all decisions and approvals.
Understanding and adhering to the principles of general and specific authority is essential for condominium managers to act within the scope of their representation agreements and comply with the Real Estate Act Rules. Managers must ensure they are equipped to balance routine tasks under general authority with significant decisions requiring specific authority.
Additional Tips
Familiarize yourself with the representation agreement to clarify the extent of your general and specific authority.
Regularly communicate with the condominium board to confirm instructions and obtain required approvals.
Document all actions and decisions to maintain transparency and accountability.
