Page 7 - New England Condominium January 2019

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM - JANUARY 2019 7 care of; if management does not commu- nicate well with residents; or if important legal counsel to ensure that its rights are quire the manager to solicit bids, you can- deadlines are not met or if a manager is protected and that it does not enter into not terminate them, or be unhappy with relationship between the association and not retaining information. It is important a contract which ex- for the manager to ask for feedback after ceeds its authority. By a concern has been raised. Discussions way of example, if the should always be followed up in writing association’s declara- or with mail.” Contractual Concerns A carefully-considered contract is es- sential in establishing the relationship not have the legal au- between management and association. thority to enter into a It can outline the terms of the manager’s contract for a longer performance, establish a board’s expecta- tions, and give both parties an out should the fit prove to be poor. “Generally, whether an association has allow for the manag- the right to terminate a contract with- out penalty depends upon the language to be terminated for of the contract itself, and/or perhaps cause, notes Wurtzel. the terms of the declaration,” says Dawn “The better docu- Moody, Principal at law firm Keough mented the problems are, the easier it is to the property at least once per week, put minate management by maintaining an & Moody, which has offices in Chicago prove cause,” he says. “Being able to show that in the contract. This way, the failure ongoing and regular policy of communi- and Naperville, Illinois. “I believe that a that numerous letters addressing a partic- management contract is one of the most ular issue were ignored by management tion allowing for termination if and when important contracts entered into by an helps as well. Of course, the scope of the it does not occur.” association. Because of this, that contract agent’s services are limited by the terms of should be reviewed by the association’s the contract. If the contract does not re- tion limits the length of a management con- tract, the board does period of time.” Almost any man- agement contract will ing agent’s services them because they management sours and cannot be sal- failed to do so. “And, when signing the con- tract,” Wurtzel continues, “make there are no signs as to what might go sure expectations wrong. But once the contract is signed, and obligations are it’s too late. Therefore, a close review of spelled out therein. the termination provision is paramount If the agent tells to properly protect the association in case you in its sales something goes wrong. Through its legal pitch that you will counsel, the board should be sure that get monthly re- ports by the 15th addressed. Ideally, the board should be of each month, put able to freely terminate an agreement if that in the contract. they are unhappy with the services ren- If it’s important for dered without penalty. That said, the goal the agent to visit should always be to avoid the need to ter- of them to do so becomes a clear viola- “The initial review of the contract is vital, as it will allow the parties to fully understand their rights if or when the vaged,” adds Kreibich. “All too often, the board does not address this issue in ad- vance, because, during the honeymoon stage with a prospective new manager, any penalty provision be removed and cation.” n Mike Odenthal is a staff writer at New Eng- land Condominium. “For the first year of a contract, quarterly reviews are important. Thereafter, every six months should be adequate, unless there are specific concerns.” — Stella Munro