Can a condo association get out of contracts made by the previous management company?
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Can a condo association get out of contracts made by the previous management company?
We have just voted a new board 2 months ago and decided to forgo the previous management company and manage the condo on our own. The management company signed a waste service agreement 4 years ago which expired last year. That contract automatically renewed for another 3 years. The management company used the condo association’s name to make such a contract. Can we break the contract since the management is completely different?
Asked on January 18, 2012 under Real Estate Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not your condominium association can terminate the contracts that you have written about that were entered into by the previous management company without recourse depends upon what the agreements state. You need to carefully read them in that there provisions control the obligation owed to the association by the vendors and vice versa in the absence of conflicting state law.
If the prior management company did not have the authority to bind the association to the new contract and the new vendors were aware of this, then there is a chance that those new agreements can be avoided by the association. I suggest that you and the association consult with an attorney that practices law in the area of planned unit developments.
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