How should HOA separate from Management Co

Started by PaysonC • 3 replies • 1127 views

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PaysonC (Texas)
Posts: 4

Posted:

How should an HOA separate from a management co?

I can imagine it's not pretty.

Do you have a right to all records or can they say you owe us $ 1st?

SusanW1 (Michigan)
Posts: 5,202

Posted:

Do you have a contract? then it should state the notice period and conditions of the separation. (What papers or paperless information is to be returned back to the HOA)

OF COURSE all services should be paid for - but get what you are entitled to, too.

Your president and the owner of the company need a sit down and an "exit" plan.

GlenL (Ohio)
Posts: 5,491

Posted:

Payson, the method for terminating the contract should be in the contract. It usually requires written notification of the Associations desire to terminate the contract within a specific timeframe i.e. 30, 60 or 90 days notice. Some contracts require justification, meaning you can only terminate if you have documented cases where the MC has screwed up, others require none. If you are in doubt you should ask the Association's attorney on just what is required. The records are the property of the Association and should be returned, however it is not unheard of the MC not releasing them until all their fees are paid but they can't invent new fees not in the contract.

Studies show that 5 out of 4 people have problems with fractions

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Glen covered the bases on this.

We had a 90 day termination period in the contract, the PM wrapped up in 60. About 90 lbs. of docs were delivered to us after we paid everything due to the PM. PM was very helpful afterwards when we had Qs about a few items.

Keep things business-like and friendly. You and the PM might be doing business again if your self-management or new PM doesn't work out. Which are option are you considering?

Good luck.

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