What must Limited Licensees do prior to spending client funds above $500?

Prior contract approval is essential for Limited Licensees before spending client funds above $500 because it ensures that any financial commitment made on behalf of the client is authorized and agreed upon. This requirement protects both the client and the licensee. It establishes a clear understanding of the expenses involved and prevents any potential disputes regarding fund usage.

When a Limited Licensee seeks prior approval for expenditures exceeding the specified limit, it demonstrates professionalism and accountability. This practice ensures transparency in managing the client’s funds and reinforces trust in the client-contractor relationship. Obtaining contract approval reflects good governance and aligns with the ethical obligations of managing client money responsibly.

In this context, other options do not fulfill the same purpose of ensuring pre-authorization for significant spending, which is a critical component of maintaining the integrity of financial dealings in condominium management.