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Posted by McGyver on August 5, 2007, 11:58 am
> This isn't about my home, but about a contract my HOA is about to sign
> for repairs to the road and parking lot.
>
> How important is it, and who should be listed as the customer on a
> contract for such work to be done in our n'hood? As opposed to
> listing the management company as the customer.
>
>
> A week ago, at a board meeting, we saw a propsal by the company they
> have decided to do business with and it was signed by the paving
> company representative, on their stationery, and listed as
> Customer the property management company we use to collect HOA fees,
> to pay bils, to look for contractors, etc.
> It listed as
> Project Name/Address us, with the address of the president of the
> HOA's address.
>
> It listed as Project Contact the employee of the management company
> assigned to our n'hood, and as Contact Phone, her phone.
>
> At the bottom is a line for Customer Authorization, which I'm pretty
> sure the pres. of the HOA will be signing, but maybe it will be
> someone from the property man. company, and even if it is the HOA
> person, I don't know that will help us, since no such name appears
> anywhere on the contract, and she probably won't include her title,
> and "Customer Authorization" refers pretty clearly to "Customer" at
> the top, where it names the property management company.
>
> I suggested that the HOA should be listed as the customer, and if it
> wasn't and if perchance it was necessary to sue, it would be more
> difficult, having to get the management company to sign off on
> everything (and having to get them to agree to any settlement, or keep
> them from withholding agreement.) I didn't say the part in
> parentheses.
>
> The others involved gave the impression that they would have the
> "Customer" changed. They called last week's form a proposal and said
> it would be followed by a contract.
>
> So now it's a week later and the current form I saw today lists only
> the three items we agreed to do and not a couple others we decided not
> to do, but otherwise it is is identical to the previous form.
>
> Anything with a signature by the paving company, and a blank called
> Customer Authorization and a place for a signature and a date looks
> like a contract to me.
>
> Not only that, it occurs to me that we don't have exactly the same
> interests as the management company. I"m not sure how this would
> cause us problems, but I'm slow-witted. (One thing might be related:
> They don't really search for contractors when we need one, unless
> pushed. Usually they have 3 or 4 of each kind and they recommend to
> all their clients 2 or 3, whatever the building or n'hood wants to
> see. The management company may think our complaints are unreasonable
> (even I may think that given the people here) and maybe not want to
> antagonize a contractor they are happy with. Actually, the board
> members tend to be pushovers, and it's probably more likely they won't
> sue when they should. This would be especially true if the management
> company doesn't want the nuisance, and it will be a nuisance for them,
> I think, since they are listed as the customer.
You are right, the HOA should be listed as the customer, but the issue is
not important. The managment company is acting as agent for the HOA. So
the contract is between the contractor and the HOA regardless of the fact
that the HOA's agent did the actual enterring into. If you need to sue the
contractor and the HOA won't cooperate, the HOA will simply name the
management company as an additional defendant. Not a big deal. As for the
lien, the contractror will place a lien on the property if necessary,
regardless of whose name is on the contract. And finally, if the contractor
sues, they will name both the HOA and the managment company as defendants.
So you are right, but it's not worth starting a fight over.
This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.
McGyver
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