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An HOAleader.com reader has requested that we do a primer on important contract terms and conditions, particularly as they relate to California's balcony repair and inspection law, and we're delivering.
In this week's tip, we get you started on one of four contract provisions our experts consider critical to read and most likely revise in your favor.
“We do classes on this, and there are at least 20 key provisions
I want to see,” reports Elina Gilbert, a shareholder at Altitude Community Law in Lakewood, Colo., who has specialized in community association law for 24 years. “So there are a lot.”
Here's the first of the four
biggies.
Insurance and indemnification—Several of our experts raised this issue, pushing it to the top of our list.
“I think it would be blanket for any contract an association would enter into that we'd want to see insurance requirements for the contractor and indemnity provisions in the association's favor,” reports Carrie M. Timko, counsel at Sandberg Phoenix in Clayton, Mo., who is licensed in Hawaii, Missouri, Illinois, and California and has
represented community associations for 20 years. “Typically, indemnity provisions are written in favor of the contractor. I'd rather have contracts say the association won't indemnify contractors and that instead they need to do that for the association.”