How to Terminate the Existing HOA Management Contract
If you were on the board of directors for your homeowner’s association, which has been overseen by professional HOA Management Company, you should have a copy of your present management agreement between the association and the HOA management company. The contract would entail essential information imperative for proper managing of your homeowner’s association. It would be inclusive of how to terminate the contract with the HOA management company.
With the end of the year approaching, several Scottsdale HOA management companies have contracts expiring and coming up for renewal. You should not miss the window of opportunity to make the much-needed changes in the management. It would be imperative that you request a copy of your management contract along with carefully reviewing it with other members of the board. It would be necessary to go through the various options available when it comes to terminating the management contract.
It has been deemed of great importance that you should consider the length of the contract. You would need to determine the duration of the contract. It may be one, two, or three years. In the event the contract renews automatically, you should consider the duration for the automatic renewal of the contract.
In the event, the HOA looks forward to terminating the contract with their present company; you would require finding out the different stipulations existing for termination of the contract b the HOA. It would pertinent to go through the notice period to be served specifically mentioned in the contract. It may be 30 days, 60 days, or 90 days. You should consider the time of serving the notice, such as giving a notice 30 days before the effective date. In such a scenario, you should rest assured that the board members should be made aware of the effective date of the contract. Besides, you should consider how to serve the notice, through certified or regular mail.
You would also be required to establish whether there has been any termination penalties encompassed in the contract, in the event the HOA is released from the contract early. You should also look for any remaining management fees to be paid in the event of early termination.
Knowing the precise language in your HOA management contract would help the board members immensely. It would help them make better decisions for the betterment of the association. You should get in touch with your HOA Management Company or HOA attorney for seeking adequate assistance and tips for the renewal of your HOA management contract.