By-Laws

Started by GraceH • 12 replies • 1163 views

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GraceH (Virginia)
Posts: 224

Posted:

Can anyone tell me exactly what this means?
The managing agent shall be a bona fide business enterprise, which may be affiliated with the Declarant, which manages common interest residential communities. Such firm shall have a minimum of two years experience in real estate community management.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The managing agent shall be a bona fide business enterprise, which may be affiliated with the Declarant, which manages common interest residential communities. Such firm shall have a minimum of two years experience in real estate community management.

means:

The MC should be a company that can manage common interest residental communities (HOA) - which may or may not be a company owned by or affiliated with the declarant. This company should have at least 2 years experience in this field.

Bona fide would mean registered with the state or at least a DBA.

GraceH (Virginia)
Posts: 224

Posted:

Susan,
Thank you for your response.
Can this be one person?

SusanW1 (Michigan)
Posts: 5,202

Posted:

As long as this person is either staff or owner of a bona fide business that deals with HOAs.

GraceH (Virginia)
Posts: 224

Posted:

How would I find out if the pm is not forthcoming with information?

SusanW1 (Michigan)
Posts: 5,202

Posted:

What information/

If she's bonafide, she will be incorported (registered with the state), or be a DBA (registered with the county) but she should be incorporated, since there are liability issues, such as handling funds and overseeing contracts, etc. Your treasurer should have all this information. there should be a contract somewhere, signed by whomever hired her.

GraceH (Virginia)
Posts: 224

Posted:

Susan,
Should that be with the contract that was just signed? Or the original contract when she was first hired?

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Susan,

I think your def. is a bit too narrow as to bona fide. Bona fide essentially means real or authentic. If a person(s), regardless of licensure or affiliation, say, has been in an on-going business of mgmt. for twenty years, they would be considered bona fide, yes?

GraceH (Virginia)
Posts: 224

Posted:

John,
Thank you for your input.
Would it make them a bona fide business enterprise?

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Grace,

The language you quote re: BFBE is meant to keep out fly-by-night opportunists, some amatuer guy the Prez is friends with and wants to toss some money at, etc.

It could be iffy in some situations, but in general it shouldn't be too hard to figure out if a PM is legit.

Do they do this full time?
Do they have other client HOAs?
Do they have an office?
Do they appear to know what they're doing?

GraceH (Virginia)
Posts: 224

Posted:

John,
Yes, she works for our association full time.
No, ours is the only one.
The office she works out of is our association clubhouse.
Yes, she appears to know what she is doing to the extent that she has been there for so many years. Although the communities physical neglect, and the many questions regarding the integrity of financial transactions leave doubt.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Sounds like you've got your own private Tom Hagen.

BFBE? I'd say yes. But BFBE doesn't mean acceptable.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Grace,

A bonafide business enterprise would be a business that is operating IAW the laws of the state and city/county in which the business is located. It could be a large corporation with hundreds of employees or it could one person operating a Schedule C business (self-employed). I believe you're saying your PM would qualify for the latter, in which case she should still have a business name by which she operates and also a business license. Not all businesses are registered with the BBB, so going that route may not produce any results for you. Being a business that manages HOAs, I would think she should have taken some courses in HOA management, perhaps from CAI. I would definitely inquire about that. Just because she has been managing your property for a number of years doesn't mean she's good at her work. Don't make assumptions! Unless the current contract is just an addendum to the original contract, it should be the contract by which she is operating. The original contract would have expired on the date stated in the contract. If the current contract was signed by the BOD, they are bound by everything stated therein.

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