Terminated Prop manage co. threating lien on property

We have a disgruntled former property manager who is refusing to turn over electronic documents and financials that would be considered owned by our association.

Upon termination, the conditions included that we received all documents etc including those in electronic form. They refuse claiming they don't have to as everything in on paper.

Of course when they took over, they were able to get them from the last management company, and they got it from the previous as well.

Now they are threatening a lien until we pay. We are more than willing to pay or even put the money in escrow to show good faith.

Could they actually get a lien if they are refusing to turn over electronic files?

Any suggestions over all?

Thanks

Krystal,

Your note indicated that you still owe the management company money, so, yes, they probably could get a lien, but they would have to file it on every unit to be effective and it could possibly cost them more than its worth.

The key will be in the exact wording of the agreement. For example, if the agreement says something to the effect of all documents, both electronic or hard copy, then you probably have a claim to the electronic documents. However, if it doesn't reference both, then conceivably, the management company could claim that by providing a hard copy of all documents, they have fulfilled their agreement.

If the agreement isn't clear, then have your association attorney try to work out a settlement that gets both parties what they want, you, the electronic version of your documents and the management company, their final payment.

Joe

KystalA, there is nothing in the section that you quoted which requires, and or defines, electronic records.

What I think is often forgotten in situations such as this, is that the MC does have a fiduciary responsbility to their shareholders/investors/principles to protect the company's well-being as well. Usually (not always) there is cluase placed in contracts where ONE copy of set of documents are kept for the agreed "archival" purposes (i.e. the MC is audited, etc).

I would NOT expect electronic documents from this MC if that is all that you ahve in your contract. You have to remember you are ending a relationship, and there is nothing which "requires" the other party NOT to act like a jerk. It probably will be a pain in the butt for your association to (again) put the hardcopy of those documents into electronic format (possibly scanning would suffice for those that are strictly historical); but is a "lesson learned" for when the HOA decides to enter into a new contract with another MC - make sure that you have electronic copy access.

There is more in the contract, but that is the main document part.

Considering the crap they put us through when they quit the last company, started this one, and basically bullied the then board to sign up - it stinks all around. they got our electronic ones after i convinced the last company to turn them over, and then now they are making a stink on this.

Personally i want to just get an inventory of what they have before we just hand a check over and "hope" everything is there. I guarantee it isn't so that irks we have to pay her, but she doesn't have to be accountable....in fact a recent email to the board stated that she doesn't keep any records...so we could get a shoe box that only has our CD certificates..

Now its a pi**ing contest between the PM and the president.

KrystalA: Don't be so concerned with 'she doesn't have to be accountable'...in fact a recent email to the board stated that she doesn't keep any records..."

If this is true, you and I know she will not remain in the Property Mgmt. business long. Realtors and Community Assn. members have a way of 'letting the truth be known' among other reators/communities...

You have learned something; move on and be more careful with your next Prop. Mgr. contract. Refer to Roger's list of mgmt. responsibilities which he has posted on this site.