Horrible HOA management company

Hello All,

1. We terminationed old company and contacted with new company. Currently Old company has not forwarded documents to new HOA management company and asked money to our HOA. Although we don't have any extra fees cluse or term at the termnation time in the contract that we signed.

2. They also denied they received a temination letter and 30day notice from us on Dec 31 because they said their office was closed on Dec 31. we used Express mail. We have a proof that the letter was delivered on the date. which a legal counsel confirmed that's enough evidence that the letters were delivered on Dec 31. Since termination letter was not delived the last day of month, we have to pay extra month to them on the top of the transition fee.

I have contacted so many hoa mangement companies, I have been told that there is some hoa setup fee and transfer fee in the beginning but not for transition fee at the termiation time. When I get proposals from many companies, there is no clause about termination transition fee.

A legal counsel also reviewed our contract with old compandy and confirmed that there is no transition fees clause at the termination time and we don't need to pay it.

Currently they are requesting that basically, "just pay to us, whatever money we (old management company) ask to HOA, if you hire legal counsel and fight against us, it cause costs (more money) to HOA and the board could be shameful if homeowners find out later". Currently they are asking thousand dollars to HOA.

I am wondering what you would do if you were the board members. Please advise.

Also, If you ever experienced like this, I'd like to hear that type of experience. Pesonally I have not seen this type of vendors in my life. This is horrible!!!!

They are not like a big size, pretty small company only 6-7ppl 20- 30 HOAs they manages currently I think.

Thank you in advance for reading this and providing opinions.

Lisa:
I do believe California has licensing of association managers. File a complaint against this company.
If the management company is not licensed, since California leads the country in homeowner protection laws, there must be somewhere you can file a complaint. Even a complaint with the Better Business Bureau might get them moving.
And, your county's Office of Consumer Protection might be able to help you.
Jeanne

Old company does not belong to any organizations, ECHO, CACM, CAI, etc I am pretty sure about that. Yes in California, it seems it's required to have a license to have property management services business.

Their demand number is outrageous. new management company, a lawyer, all board members agree that it's not reasonable at all.

I'd suggest that you pay your attorney to write a letter demanding the return of the records and that they comply with the terms of the contract as written. Have him include the proof that the management company was properly informed (per the terms of the contract). It might cost you $200 but once the MC sees you mean business, I think that they will be the one's who give in.

Thanks Tim,

It appears that they don't care. Our legal counsel already sent it to the old company to request to return documents. They don't care. They have not changed their position. If we,or a lawyer keep sending letters to them, they claims that we would not good for us, they will charge to our hoa for reading the letters from attorney.

Well if your going to change management companies then you need to start now. Don't let the old one hold you all up. Best to start focusing on a new beginning. Once the old company sees they no longer have you over a barrell they may loosen up and give over the documents. It's time to get things together and move on if that was the original purpose of getting rid of the other company.