Question:
I’m one of six owners in an HOA that requires unanimous votes. Our property management company mistakenly paid eight months of payments toa vendor that we canceled. It’s about a $1,000 mistake. I’m the only owner who thinks this mistake is unacceptable. Our property management agreement does state that they are responsible for managing vendor contracts, billing, and invoices. How do I resolve this when the other 5 owners are not holding the company accountable and the company is unresponsive?
– Liza
Answer:
Hi Liza,
Kindly review the contract with the HOA management company and pay close attention to the terms regarding vendor management, invoicing, and billing. The clauses in the contract may help you understand how to proceed. It may also be wise to document the mistakes.
You may also exhaust all forms of communication with the management company through text, call, mail, email, and personal visit, if possible. You may also ask the board to coordinate with them. If the management company remains unresponsive to the community, you may choose to replace them. Kindly review the contract’s termination clause.
As for resolving the issue with the community, you may raise this with the HOA board and with the other homeowners at a board meeting. You may highlight the management company’s contractual responsibilities and the board’s fiduciary duty to act in the community’s best interest. You may also try alternative resolutions, such as negotiating with the vendor to reimburse the mistakenly paid funds. Alternatively, you may opt for third-party dispute resolution methods like mediation or arbitration. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
