HOAleader.com - Tip of the Week - November 15, 2019

Published: Fri, 11/15/19

HOAleader.com - Tip of the Week - November 15, 2019

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Condo/HOA Contract Autorenewal: Tactics That May Work in Unrenewing

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In this week's tip, we answer two HOAleader.com readers' questions seeking the same advice: Can we get out of an autorenewed contract?

Our first reader essentially asks: If the contract was signed by the parties on different days, is it valid? And doesn't an autorenewal require new signatures at renewal?

The second reader asks if a misidentification of the association in the contract is valid grounds for termination.

Sadly, for our first reader, the fact that the representative of the association signed on a different date than the representative of the management company is not a problem and actually very common.

"For most of the parties I represent, nobody really signs in the same room at the same time anymore given the electronic age we're in," says Elina Gilbert, a shareholder at Altitude Community Law in Lakewood, Colo., who has specialized in community association law for 19 years. "That's very common and irrelevant."

That's also the analysis of Steven R. Braten, a shareholder and head of the firm's community association practice at Rosenbaum PLLC in West Palm Beach, Fla.; he has nearly 25 years' experience representing community associations. "I don't think that's going to fly," he says.

Joining the chorus is Phaedra J. Howard, a partner specializing in community association law at Hellmuth & Johnson PLLC in Edina, Minn. "Contract law says a contract becomes effective on the date the last party signed it unless a different date is stated in the contract," she explains. "So that's not an issue."

What about a requirement for new signatures for autorenewal? Nope, that's not going to fly, either. "I don't think you need a new signature because there's been a board change or a new president," says Braten.

However, our experts have a few suggestions that might actually help our first reader get out of the contract. They also have suggestions for our second reader. Read more in our new article: https://www.hoaleader.com/members/4016.cfm

Best regards,
Matt Humphrey
President

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