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Understanding the Different Ways for Termination of the HOA Management Contract

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In the event of you being on the board of directors for your homeowner’s association and the HOA have been overseen by professional phoenix hoa management companies, you should have a copy of your present management agreement between the HOA management company and the association. The contract would hold valuable information essential for proper management of your homeowner’s association. It would be inclusive of different ways to terminating the contract.

With the end year approaching, several HOA management contracts would expire and would come up for renewal. You should not miss your chance to make a required change in the management. You should request a copy of your management contract along with carefully reviewing it with other members of the board of directors. It would be imperative for exploring the various options you have for terminating the management agreement.

Duration of the contract

It would be imperative to take the duration of the contract into consideration. You should determine how long the contract would last. It could range from one to three years. In the event of the contract automatically renewing, you would be required to consider the time period that it would automatically renew for.

The termination clause in the contract

In the event of your HOA looking forward to terminating the contract with their present company, you would be required to find out the stipulations prevalent for termination of the contract. You should consider whether you would be required to give notice for 30, 60, or 90 days. Would you look forward to giving notice thirty days prior to the effective date? In such an event, it would be imperative for all board members to know of the effective date of the contract. Moreover, you should be aware of how the notice should be given.

It would be essential that you look forward to establishing whether there have been any termination penalties entailed with the termination of the contract early.

 

Paul Watson

The author Paul Watson

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