HOA Management Co. sold to new owner

Started by GloriaE • 5 replies • 1417 views

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GloriaE (Arizona)
Posts: 2

Posted:

There was no request to the HOA to accept new owner. She just came barging in and starts giving orders. Previous owner committed HOA to pool repairs and has paid Pool Co. $30,000 up front. Then she fires the Pool Co. and looks to arrange for another Pool Co.

Is the HOA committed to accepting this new owner even if we do not want her to do this job? We were on the verge of firing the old management owner for poor and non performance.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Read your contract!!! Find out how long the contract is for and when it runs out. There are penalties for early cancellation on both sides. Find out if there are any conditions of which you can end the contract early. It may be that change of ownership is a condition.

The second thing is to make sure you have another management company lined up to take the job. Start interviewing the other potential companies and compare potential contracts. This is time to make any changes you don't like with the current contract. Especially if they aren't recognizing the fact that the management company does what the HOA tells it. They are contractors...

Get these things in order and the answers should lead you in the right direction...

Former HOA President

GloriaE (Arizona)
Posts: 2

Posted:

As I mentioned the original Management Co. owner was on his way out for non=performance, lack of knowledge of HOA's, poor record keeping and all round not qualified for this job. He supposedly hired this person and then sold her the company after 2 months. Our HOA was his only account. I am pretty new to this HOA so I have no idea how he was hired in the first place.

Thanks fr your help.

TimB4 (Tennessee)
Posts: 21,060

Posted:

Gloria,

The Association will be bound to the terms of the contract. The Association should have a copy of the contract.

The Management company works for the Association. If the MC is acting outside the wishes of the Board, then the Board needs to have a talk with them.

Tim

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

If its prepaid, why change? Are you going to get a refund or pay another company, essentially paying twice?

FredS7 (Arizona)
Posts: 927

Posted:

1. The management company works for you. Although diplomacy is always a good idea, your "talk" should make it clear who is ultimately in charge.

> Previous owner committed HOA to pool repairs and has paid Pool Co. $30,000 up front. Then she fires the Pool Co.

2. Does the management company even have the authority to do this?

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