PM contract with HOA

This is an Illinois HOA and our association is handled by a property management firm.

Do homeowners have a right to request a copy of the management contract signed by current board members. Are homeowners legally bound to this contract as well?

Also, we are being told that since our ccr's are legally binding documents we can only view and, if a homeowner wants a printed copy we must submit in writing to the property management for one. I'm sure this is not done for free. This doesn't sound right to me. Also, just wondering if a management company raises their fees (home sales) are they obligated to communicate this to homeowners as well?

Thanks. -ReneeD

Rene as Gloria stated there are copying charges when you get something like the Declarations and By-Laws from the MC. However if you go to your County Recorders website you can often view and print the documents from there. Just put your Associations name in the search block on the CR's website and all of the documents relating to your Association and your neighbors should pop up.

All documents are open to owners in Florida, with the exception of ongoing legal matters. There is a per page copy charge. We have posted the contract with our lawn service on the website, so that residents know what they should be doing and what they are not responsible for maintaining. I did white-out the contract amount. They can get that by request.

As for copies of the CCRs, we charge $10 for a copy, but have recently posted them on our website so that any owner can view/print them. I WANT folks to have these docs. It increases compliance.

Renee,

One thing I would mention is that the management contract does not need to be signed by the current board. I don't know about most contracts, but our contract had an initial one year obligation and then after that we can terminate it with a 30 day notice. The exception (which in our case had no effect) would have been that if we transitioned the contract would immediately become eligible for termination with a 30 day notice.

In most states you have a right to examine any contract to which your HOA is bound. And as others have said, they have a right to charge you for copying. In our HOA's case, there is a charge for all such copies made, though those for board members are paid by the association. I suspect this is pretty normal as it is assumed that the reason a board member asks is in relation to board business. (All of our members received a binder with this information at our first meeting.)

You can also view the CC&Rs as well as the governing documents through your county records. Such items are required to be recorded to have any effect. Before paying for a copy I would first check your closing papers. Again, in many areas your title company is required to provide you with a copy of any "encumbrances" upon the property. At the very least they are required to inform you of them and the best way to cover themselves is to provide a copy of them. Otherwise they could get drug into a legal fight for not properly informing you. (And that is part of why houses are closed by a title company. They are responsible for making all the ducks line up.)

I would encourage you to read through not only the CC&Rs, but also the governing documents of your association. Find out if you are under owner control or declarant (developer) control. Learn when your homeowners gain control. Also, in most cases you have a right to know who is on the board of directors and to attend the meetings. (Though you may find they are pretty boring as if under developer control they likely just agree with the manager and move on.)

Good luck in your quest for knowledge. jsut be aware that it is the first step to becoming a board member.

No files exist for our association in their records. Does this mean none of our documents are legally binding? (ha-ha) -ReneeD

BradP:

As I stated in my post I was not sure of her state laws, but am I sure here in NC, the answer is yes. Already had this issue examined by attorney's and contracts are not one of those documents opened to membership perusal. Doesn't mean the board can't show them.

Thanks...