To Sign or Not to Sign a Contract?

Started by KellyC6 • 5 replies • 1932 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

KellyC6 (Virginia)
Posts: 37

Posted:

Let's say hypothetically that a Subdivision Deed has a provision specifying that a particular homeowner has the responsibility to take care of the mowing along his private drive. The HOA has the responsibility to take care of mowing throughout the rest of the community, but not for this particular homeowner's private drive. For the sake of a uniform appearance throughout the community, the Board makes a decision to approve a contract to do mowing that includes the private drive. The governing documents require two signatures on contracts, and currently the President and Treasurer have signature authority. Is the President legally required to sign the contract on behalf of the HOA/BOD even if the President does not concur with the decision to perform mowing on the private drive? Can the President elect not to sign the contract and allow/request that someone else sign instead? Please feel free to include any other helpful comments on the BOD ignoring such a provision in the Subdivision Deed.

JimE3 (Ohio)
Posts: 3

Posted:

If the Board approves the contract the President is required to sign the contract no matter how he voted.

RogerB (Colorado)
Posts: 5,067

Posted:

Kelly, the President should sign. However, if they refuse the Board can authorize another Officer or Board member to sign; and the Board should consider electing a new President who will preform the duties required of the President.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kelly,

I sat on a board where I thought a contract should not go to a specific contractor. The Board debated the issue over several meetings and various documents were created showing the pros and cons. When the vote was taken the majority of the Board voted to award the contract to the contractor I did not think should have gotten it. However, since I was serving as President of the Board - I had to sign the contract with that contractor.

This is how it works. The individual serving as President has one vote. The same individual performing the duties as President must comply with the Boards decision or, if they feel strongly about it, resign from that office.

Tim

KellyC6 (Virginia)
Posts: 37

Posted:

Thanks for constructive comments and feedback. Appreciate the advice and find this forum extremely helpful to dialogue about thorny issues. Many thanks, Kelly

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Kelly:

The problem here is potentially the board may not be able to approve and pay for upkeep of an item which is not HOA responsibility.

My question and why potentially I would not sign the contract until answered would be:

Is it legal in your documents or state statutes to spend HOA assessment money on an item which is not the HOA responsibility to maintain? If it is the owner's responsibility then the owner needs to maintain and if he does not maintain then he can possibly be fined as allowed in your documents OR it can be completed and assessed against said property by HOA possibly only if not maintained. Potentially sounds like your governing documents need to be amended if the HOA wants to take on the responsibility of servicing private property.

If you are offering free lawn mowing ... welcome to come to my place.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here