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ReneeD (Illinois)
Posts: 201
Posted:
Board has decided to terminate contract and go with another management company. How does the Board address this at our next meeting. Should it be included in current Management Agenda or, as an Addendum from the Board. Thanks. -Renee
RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By ReneeD on 10/18/2010 9:33 PM
Board has decided to terminate contract and go with another management company. How does the Board address this at our next meeting. Should it be included in current Management Agenda or, as an Addendum from the Board. Thanks. -Renee

First, I presume you have reviewed your management agreement to determine when and how you may terminated the agreement. The Board will need to have another management company selected and available by that date.

At a Board meeting your Board can either: 1) not invite the current managing agent to the Board meeting where this motion and vote will occur; or 2) if they must be present the Board can excuse the managing agent from the meeting at such time as they areno longer needed and then make the motion and vote. If the motion passes the management company is given, in writing, a termination date which complies with the agreement.

CAUTION: try to part amicably because the current management company will need to interface with the new management company.
CathyS3 (Texas)
Posts: 9
Posted:
We just changed management companies - our developer had picked the old company - they were old family friends.

We checked the mgt. contract and it said how to terminate the contract. They were spending so much money that for seven years in a row we will end up $40K in the red. We also amended our by-laws so that none of the developers family could serve on the board (8 family members in the neighborhood - all with extras in their homes not available to regular homeowners).

We also just found out that they have been paying bills late - who knows what we will find as we go.

Our lesson be ready for a storm - they threatened to sue us and have not turned over anything to the new mgt. company - and have not spoken to any of us since the termination letter - except for the developers sister, whom he put on the board, as a condition of turning the board over to the homeowners. They called her instead of the Board President when we fired them.

Also make sure the neighborhood Lawyer is on your side before you discuss anything with them.

MaryA1 (Arizona)
Posts: 388
Posted:
Cathy,

You stated: "We also amended our by-laws so that none of the developers family could serve on the board (8 family members in the neighborhood - all with extras in their homes not available to regular homeowners)."

You may run into legal problems should one of these "family members" decide to challenge this. IMO, this could easily be construed as discrimination.

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