Management Company Contract and Length

I have been asking for a copy of our management contract (I am on the board) since October 13, 2004. I have asked many times over the past two years and have been ignored until recently when one member said we had one done in the early 1990's. I was told that it renews automatically every year.

Have you every heard of such a thing? How long is your contract and how often do you put out an RFP?

Help

Our Declarations prohibit the contract from being over three years in length.

Section 5.2. Professional Management Contracts. The Association may delegate all or any portion of its authority to discharge its responsibilities under Section 5.1 above, to a manager or managing agent. However, neither the Association nor the unit owners will be
subject to any management contract nor agreement executed prior to the assumption of control by the unit owners, as provided in Article IV, Section 4.2, for more than one years subsequent to that assumption of control unless such contract or agreement is renewed by a vote of the unit owners pursuant to the By-Laws. Any such management agreement shall not exceed three (3) years and shall provide for termination by either party without cause and without payment of a termination fee on ninety (90) days or less written notice.

In my opinion - our relationship with anything the MC touches is strange.

Of course there are increases!

Mary,

You might want to check your state statute as it may be that you are entitled to your Association's records as a unit owner. If that is the case, please remind your MC as well as your fellow board members that you have a legal right to receive a copy of your MC's contract.

Good luck!

In our state the length a contract by a board elected annually can be enforced is one year, in other words you cannot sign contracts longer than your term length on the board, it may vary in other states, however I think its more of a corporation law than state law. Check it out