Question:
How do you legally replace your management company?
If the management company is also a homeowner, is this a conflict of interest?
– Rhonda
Answer:
Hi Rhonda,
Kindly refer to the contract with the management company to see its termination clause. There may be a proper way to cancel the contract and advanced notice requirements. However, there may also be a monetary penalty for early cancellation. Alternatively, the HOA may also wait for the contract term to expire and forego renewal.
As for the conflict of interest, the California Corporations Code Section 7233 allows contracts between associations and another entity wherein a director has a material financial interest, subject to certain conditions such as disclosure. However, this may only apply to directors and not homeowners. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
