Management Co transition

Afternoon all,

We are about to transition from one management company to another. Has anyone ben through this before that can offer some advice, things to avoid, lessons learned?

Thanks alot!!

Shannon,

Basically you want to worry about two things:

The records
and
The money

Start requesting copies of records now. They should be returned to the Association and the Association should turn them over to the new company.

Hopefully the bank account is in the Associations name and all Directors are listed on the signature cards. Pick a date that the old management company will cease issuing checks (if they are in fact doing that) and type a memo to the bank removing them from the signature card. When the new company is hired, they can be added (if necessary).

Hope this helps,

Tim

This attachment may help you.

Shannon, I can't open Roger's attachment, so I'm not sure about what's in it.

Here's some text from ours that IMO every management contract should have. The reason is that no matter how honest your current Board of Directors, we've seen many examples on this site about rogue Boards and/or rogue Board presidents who bully their management companies or property managers into following directives that oppose the interests of most HOA Owners or of the HOA as a whole.

To help ward off such behavior in the future, strongly consider a clause like the following:

"Agent will undertake reasonable efforts to implement the LAWFUL decisions of the Board of Directors . . ." "Agent will not be obligated to implement any decision which: a. is contrary to the terms of this Agreement, applicable LAW, or GOVERNING DOCUMENTS [emph. are mine]."