Jadedone4 (Virginia)
Posts: 495
Posts: 495
Posted:
During, and after transition, is it common for the developer to maintain seperate contracts for vendors to perform work on HOA property, without the consent/knowledge of the board of owners?
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Transition Question...
Started by Jadedone4 • 4 replies • 1213 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Jadedone, If it is an HOA contract, not the Developer's company contract, then the HOA must honor the agreement until such time as it is terminated. A contractor has not authority if it is not a contract where the other party is specifically identified as the HOA. The contractor can be told not enter the HOA's property and the HOA is not required to ever pay for contract work when the HOA is not a party to the contract.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
Jadedone:
If the Developer is still paying for certain services on behalf of the HOA, it is not uncommon for him to continue with the contract until such time that he turns it over to the HOA. At which time you can terminate services per the contract. If the HOA is not paying for the service and the contractor is doing a good job and being paid by the Developer at this time, hey better for the HOA, for now.
If the Developer is still paying for certain services on behalf of the HOA, it is not uncommon for him to continue with the contract until such time that he turns it over to the HOA. At which time you can terminate services per the contract. If the HOA is not paying for the service and the contractor is doing a good job and being paid by the Developer at this time, hey better for the HOA, for now.
Jadedone4 (Virginia)
Posts: 495
Posts: 495
Posted:
Roger/Gloria, it is a "combination" of your two responses. The HOA does not have a contract with this contractor. It is wholly under the developer's company name. As Gloria mentioned, it might be good to have the developer paying for his, instead of the HOA. However the issue is that the developer entered into another similar agreement with another company, and now we have some (potential) duplication of services. We just do not know what the developer, or their contractor is doing on property, until they show up - no warning, or copies of contracs/services, etc. We do not want to request that they stop, because we do not know if this could be determined that the HOA prevented the developer from completing obligations.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
I would suggest speaking with the Developer to ensure that there is not a duplication of services. Perhaps you might be surprised to find that the developer is still paying for services and you may be able to decrease the HOA's contractors services until such time that everything is turned over to the HOA.
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