Providing Counsel to Assist With Management’s Duties

 

The range of duties assigned to and undertaken by the Community’s Manager is wide and varies from Community to Community.  These duties of necessity will require a team approach by the Manager’s office, the Board, and the Association’s Attorney.  The responsibilities of the Managing Agent should be set forth in the Property Management Agreement.  That agreement should clearly recite the terms and conditions of the Association’s contractual relationship with its Property Manager. 

 

The scope of the Managing Agent’s authority should be spelled out and should be gauged against the Board’s ability to delegate responsibility as expressed in the Governing Documents.  Special attention needs to be paid to the term of the Management Agreement, as many Governing Documents prohibit a Board from entering into a Managing Agreement which exceeds a specified period of time.  It is recommended that all Management Agreements contain an express provision, which allows for an early termination of the agreement without penalty.  This provision should have bilateral application, that is to say, it should be exercisable by either the Association or the Managing Agent.  Lastly, it is strongly encouraged that all Management Agreements contain a dispute resolution mechanism limited to binding arbitration.  Experience has proven that arbitration is cost-effective and expedient. 

 

Giaimo & Associates can assist you in preparing your Property’s Management Agreement.  We can also assist you by providing guidance and counsel in order to allow you to complete your Managerial duties.