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The owner and licensee entered into an Arizona REALTORS® Property Management Agreement.  The condominium the licensee manages had a significant plumbing leak resulting in two inches of water standing in the unit.  Despite multiple attempts by phone, text and email, the licensee cannot get in touch with the owner to discuss the problem, nor get authorization for repairs.  The licensee is concerned that if repairs are not made immediately, additional damage will occur and potentially mold will form. 


May the licensee hire a contractor to make the repairs without the permission of the owner?




The Arizona REALTORS® Property Management Agreement generally requires the permission of the owner for a licensee to arrange for repairs to be made.  See generally lines 51-57.  However, lines 55 and 56 provide: “no owner approval shall be required for … emergency repairs if in the sole discretion of the Broker such repairs are necessary to protect the property from damage….” Based on the facts presented, the licensee has the authority to hire a contractor to protect the unit from being damaged further without first obtaining the owner’s consent.