A property owner in Calgary wants to delegate authority to their property manager, Raj, to approve all repairs up to $5,000 without prior consultation. Raj agrees, and they want this to be legally binding. Where should this delegation of authority be clearly defined?

Question: A property owner in Calgary wants to delegate authority to their property manager, Raj, to approve all repairs up to $5,000 without prior consultation. Raj agrees, and they want this to be legally binding. Where should this delegation of authority be clearly defined?

Answer options: ✅ In the signed property management agreement.

• Through an informal verbal agreement between Raj and the owner.
• In a separate email correspondence, attached to the property file.
• As a handwritten note in the property's maintenance logbook.

Correct answer: In the signed property management agreement.

Explanation: All material terms of a property management relationship, including the scope of authority for financial decisions, must be explicitly documented in the formal property management agreement to ensure clarity and legal enforceability, as outlined in agency law principles.