A management company and the HOA Boards of Directors understand that any formal agreement should be put into writing, especially when it pertains to processes that are expected to happen on a regular basis. Such written agreement will signify that both parties fully understand their duties, responsibilities and other things expected of them. This is the main reason for having a legal contract between an HOA management companies and your HOA. This contract should stipulate everything from payment terms to the duties of the management company.
The HOA management contract should always be clear and fair
Truth be told that there are management companies that offer services without requiring a contract–just a signed agreement. Do not fall for that. There will come a time that this arrangement will make things complicated for the community.
See to it that you and your HOA management company state in a legal document all of your terms and conditions and other things mutually agreed upon. This legal contract should cover all terms of services or describe in detail all duties and responsibilities of both parties from start to finish. Through this, a good relationship between both parties is secured even after the contract has ended.
The things that the business contract should have, but not limited to:
- Management fee
- When the contract should be renewed and how.
- The number of meetings that the manager is required to attend
- The scope of the services to be rendered by the management company
- The duties and responsibilities of each party.
Be sure that everything is clear before signing anything. Always remember that having a legal contract is a good business practice. Moreover, it protects your Homeowners’ Association and the HOA management company from any future detrimental disagreements.
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