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PA condo laws and property management question

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curt1s

Guest
Being a member of a condo association here in Pennsylvania (PA), I have run into a difficult situation. The land is still in the developmental stage and 17 or 30 units are currently sold. There are 3 members of the Executive Board of the condo association, two of the members are the developers, and one member is the owner of the property management company.

In the bylaws they gave us, it stated that 21/30 units must be sold to vote on new members of the executive board. We were planning to immediatly fire the the property management company when we, the unit homeowners, gained control of the association. The property managemnt then informed us that they have a five year contract with the association, and that it cant be terminated by us when we gain control of the Executive Board.

Here are my questions:

1. Can that contract be valid when we gain control of the association?

2. Isnt this some type on conflict of interest anyway because the owner of the property management company is on the Executive Board? What is stopping her from form givign herself a 50 year contract?

3. Doesnt the PA Uniform Condominium Act protect us from this kind of stuff?

Thank you,
Curt1s
 


JETX

Senior Member
curt1s said:
Being a member of a condo association here in Pennsylvania (PA), I have run into a difficult situation. The land is still in the developmental stage and 17 or 30 units are currently sold. There are 3 members of the Executive Board of the condo association, two of the members are the developers, and one member is the owner of the property management company.

In the bylaws they gave us, it stated that 21/30 units must be sold to vote on new members of the executive board. We were planning to immediatly fire the the property management company when we, the unit homeowners, gained control of the association. The property managemnt then informed us that they have a five year contract with the association, and that it cant be terminated by us when we gain control of the Executive Board.

Here are my questions:

1. Can that contract be valid when we gain control of the association?

2. Isnt this some type on conflict of interest anyway because the owner of the property management company is on the Executive Board? What is stopping her from form givign herself a 50 year contract?

3. Doesnt the PA Uniform Condominium Act protect us from this kind of stuff?

Thank you,
Curt1s
Those are good questions. Unfortunately, no one on this forum will be able to answer them without a COMPLETE read of all the documents (contracts, bylaws, etc.) and a review of all the facts. I would suggest that the owners get together and consider hiring a qualified local attorney to advise you.
 
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curt1s

Guest
local attorneys are not very good at this tsuff for the money they charge. really, its pretty easy to make yourself an expert on all of this stuff. I downloaded the PA Uniform Condominium Act and got a copy of my bylaws, and just read it.

I found out that by section 3305 of the PA Uniform Condo Act, their threat was unlawful. The contract can be terminated without penalty by the association when it is handed over from the developers.

the big thing is, bylaws can not override state law.

thanks
 

HomeGuru

Senior Member
curt1s said:
local attorneys are not very good at this tsuff for the money they charge. really, its pretty easy to make yourself an expert on all of this stuff. I downloaded the PA Uniform Condominium Act and got a copy of my bylaws, and just read it.

I found out that by section 3305 of the PA Uniform Condo Act, their threat was unlawful. The contract can be terminated without penalty by the association when it is handed over from the developers.

the big thing is, bylaws can not override state law.

thanks
**A: too funny......
 

Ciarraine

Member
curt1s said:
Being a member of a condo association here in Pennsylvania (PA), I have run into a difficult situation. The land is still in the developmental stage and 17 or 30 units are currently sold. There are 3 members of the Executive Board of the condo association, two of the members are the developers, and one member is the owner of the property management company.

In the bylaws they gave us, it stated that 21/30 units must be sold to vote on new members of the executive board. We were planning to immediatly fire the the property management company when we, the unit homeowners, gained control of the association. The property managemnt then informed us that they have a five year contract with the association, and that it cant be terminated by us when we gain control of the Executive Board.

Here are my questions:

1. Can that contract be valid when we gain control of the association?

2. Isnt this some type on conflict of interest anyway because the owner of the property management company is on the Executive Board? What is stopping her from form givign herself a 50 year contract?

3. Doesnt the PA Uniform Condominium Act protect us from this kind of stuff?

Thank you,
Curt1s
PA Uniform Condominium Act actually explicitly provides that long range management contracts can be cancelled when developer control ends.
 

Ciarraine

Member
curt1s said:
local attorneys are not very good at this tsuff for the money they charge. really, its pretty easy to make yourself an expert on all of this stuff. I downloaded the PA Uniform Condominium Act and got a copy of my bylaws, and just read it.

I found out that by section 3305 of the PA Uniform Condo Act, their threat was unlawful. The contract can be terminated without penalty by the association when it is handed over from the developers.

the big thing is, bylaws can not override state law.

thanks
Oh you already figured that out. What PA county are you in? Your board is going to want to retain counsel anyway to handle things like late fees and liens. If you're in a more rural part of PA, look to the largest city near you for an attorney who practices condominium law. Several firms specialize in just condo law.
 
C

curt1s

Guest
Thanks for the good advice!

We are in State College, PA.

What is your email address, you seem to be up on the laws and maybe I could contact you regarding a few other issues?

Thanks!
 

Ciarraine

Member
curt1s said:
Thanks for the good advice!

We are in State College, PA.

What is your email address, you seem to be up on the laws and maybe I could contact you regarding a few other issues?

Thanks!
sent to you by private message.
 

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