Laundry Machine Contract with Exiting Mgmt Co, Damages for Neglect to Building

[509condo]

What is the name of your state (only U.S. law)? NJ (Jersey City)

Hello,

I am the president of my Condo Association, which has 7 members (all unit owners).

We are planning on leaving our current Management Company, which has done a horrendous job in our building, and has been guilty of serious neglect which has caused expenses on both an Association and Personal level for unit owners.

In our basement, we have 2 coin-operated laundry machines, which are owned by the Mgmt Co. They have a contract, signed by the building developer's real estate agent and the Mgmt Co., stating that the machines must remain for 5 years. Nobody in the condo association was a part of this agreement, and it was only presented to us a few weeks ago.

Is the condo association legally bound by this contract?

We want to remove these machines, which are not very good, and buy our own, non-coin operated machines.

The Mgmt Co. has told us that if we have them removed before the contract is up, we have to pay $1,000+ to "make up for their initial investment."

Please advise on this.

Also, can the Condo Association sue the Mgmt Co. for neglect which led to damage to the building, as well as lowered quality of life for residents?

One example is that the Mgmt Co. ignored the poor, rusted condition of metal storm doors which regularly allowed rainwater to come into the basement and flood it, which corroded heating furnaces and caused one to need to be replaced by one of the unit owners.

Can the Mgmt. Co. be sued for damages like this, as well as other neglect in their paid duties?

Thank you,

MTKWhat is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by 509condo

What is the name of your state (only U.S. law)? NJ (Jersey City)

Hello,

I am the president of my Condo Association, which has 7 members (all unit owners).

We are planning on leaving our current Management Company, which has done a horrendous job in our building, and has been guilty of serious neglect which has caused expenses on both an Association and Personal level for unit owners.

In our basement, we have 2 coin-operated laundry machines, which are owned by the Mgmt Co. They have a contract, signed by the building developer's real estate agent and the Mgmt Co., stating that the machines must remain for 5 years. Nobody in the condo association was a part of this agreement, and it was only presented to us a few weeks ago.

Is the condo association legally bound by this contract?

We want to remove these machines, which are not very good, and buy our own, non-coin operated machines.

The Mgmt Co. has told us that if we have them removed before the contract is up, we have to pay $1,000+ to "make up for their initial investment."

Please advise on this.

Also, can the Condo Association sue the Mgmt Co. for neglect which led to damage to the building, as well as lowered quality of life for residents?

One example is that the Mgmt Co. ignored the poor, rusted condition of metal storm doors which regularly allowed rainwater to come into the basement and flood it, which corroded heating furnaces and caused one to need to be replaced by one of the unit owners.

Can the Mgmt. Co. be sued for damages like this, as well as other neglect in their paid duties?

Thank you,

MTKWhat is the name of your state (only U.S. law)?

**A: contact the HOA attorney for an opinion letter. In some states, the HOA can terminate contracts signed by the developer.
Also, the attorney should review as you appear to have claims against the management compnay.