So we're in South Carolina, we moved into the neighborhood that has an HOA about two years ago or so now, my wife became President of the HOA board in that time and we've seen how poorly the management company has 'managed' the funds and all though has lien fees here on the document paper, we researched into this and a major portion of the delinquent homes only ever got one lien put on them and that was years ago, they never followed up and they never got the home to pay the HOA fee.
So I took it upon myself to nominate myself as the management company of our little community here since I have the time and at this point the knowhow on what to do and what not to do, the board voted me in and I was about to get to work on talking to the current management company about their termination and the amicable transfer of everything back over to the hands of the community I'd like to serve.
Well, I got to looking at the contract and it has these little gems in the contract.
"This management agreement will be in effect beginning April 18th, 2017 and ending September 30th, 2017 and will automatically renew for successive one-year terms with an annual renewal date of September 30th of each year, unless association gives Manager written notice at least sixty days prior to the renewal date."
"5. Manager, will prepare the file for each delinquent owner and turn that information over to the association's attorney for collections."
"If the association is unable to fulfill its obligations to the contract due to no fault of the manager, the association agrees to buy out the remainder of the contract at fifty percent of the remaining management fees through the end of the management agreement."
So my questions are this, since the board really doesn't want another year and can't really afford another year of this management company since there are still delinquent homes is this contract now void considering they didn't hold up duty number 5 to the fullest?
And since the renewal is on the 30th, but the resigning is on October 1st, if we don't sign the contract are we in breach of anything, or can we get out of a contract that way, basically the board passed it's shady 60 day notice period hidden within the contract and have already voted me in, I'm trying to either find a loop hole to void the contract completely, or to see if anyone has a better understanding of the wording of the document itself.
Perhaps if we don't sign the contract then the renewal won't actually take place and we can start the transfer, or does anyone have any ideas here?
So I took it upon myself to nominate myself as the management company of our little community here since I have the time and at this point the knowhow on what to do and what not to do, the board voted me in and I was about to get to work on talking to the current management company about their termination and the amicable transfer of everything back over to the hands of the community I'd like to serve.
Well, I got to looking at the contract and it has these little gems in the contract.
"This management agreement will be in effect beginning April 18th, 2017 and ending September 30th, 2017 and will automatically renew for successive one-year terms with an annual renewal date of September 30th of each year, unless association gives Manager written notice at least sixty days prior to the renewal date."
"5. Manager, will prepare the file for each delinquent owner and turn that information over to the association's attorney for collections."
"If the association is unable to fulfill its obligations to the contract due to no fault of the manager, the association agrees to buy out the remainder of the contract at fifty percent of the remaining management fees through the end of the management agreement."
So my questions are this, since the board really doesn't want another year and can't really afford another year of this management company since there are still delinquent homes is this contract now void considering they didn't hold up duty number 5 to the fullest?
And since the renewal is on the 30th, but the resigning is on October 1st, if we don't sign the contract are we in breach of anything, or can we get out of a contract that way, basically the board passed it's shady 60 day notice period hidden within the contract and have already voted me in, I'm trying to either find a loop hole to void the contract completely, or to see if anyone has a better understanding of the wording of the document itself.
Perhaps if we don't sign the contract then the renewal won't actually take place and we can start the transfer, or does anyone have any ideas here?
