Condo Media - November 2023 - 31

APPLICABLE STATE STATUTES
Next, both parties should be cognizant
of the applicable state law. Most contract
forms will include a provision specifying
the state law applicable to the contract
itself (this should be the state in which
the condominium is located). However,
a solid management contract should take
account of state law in other ways as well.
States have condominium-specific
statutes to govern the operation of
condominiums. Some provisions actually
reference property management directly.
Any such statutory provisions should be
complied with through appropriate terms
and language in the contract. In general,
the contract should state that the services
provided will be provided in compliance
with the applicable condominium statute,
since the association is legally obligated to
operate in compliance with the statute.
The New Hampshire Condominium
Act is RSA 356-B. Noteworthy provisions
relative to the concept of an association
retaining property management include:
a
b
c
d
Section 35, II, requiring that the
duties which may be delegated to
a property manager be listed in
the association bylaws;
Section 35, IV-a, which allows
the bylaws to require property
management employees to
complete a background check;
Section 40-a, I, requiring
managers to disclose referral
fees obtained regarding contract
work performed on behalf of
the association;
Section 40-a, II, requiring
managers to disclose fees and
the purposes of such fees received
from unit owners (other than
those provided for in the
management contract); and
e
Section 42, I(a), affording
associations the power to
hire and dismiss agents.
Item (d) addresses another frequent
area of disagreement between associations
and property management:
fees and charges. Again, if the management
contract accurately and completely
identifies the fees and charges
that the association will incur during
the relationship, then at least the
majority of questions and issues surrounding
this topic can be avoided.
In sum, both parties want the
relationship between an association
and a property management agent to
be successful. By taking some time at
the outset of the relationship to negotiate
a solid contract, both parties can
increase the chances of that success.
n GARY M. DADDARIO, ESQ., CCAL
IS A PARTNER WITH THE LAW FIRM
MARCUS, ERRICO, EMMER & BROOKS,
P.C. AND A FELLOW OF THE
CAI COLLEGE OF COMMUNITY
ASSOCIATION LAWYERS (CCAL).
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(843) 637-7181
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November 2023 CONDOMEDIA 31

Condo Media - November 2023

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