I work as a secretary/aid for my father who is a Real Estate Lawyer. He has told me not to worry about it, but I'm his daughter and I am always concern for him.
The details are: A client has bought a condo/stack townhouse. I have researched and check the background of the management corporation that manage maintenance there. They are stable and their money pot is sufficient for any foreseeable future expenses. The purchaser (our client) will take over the home at the end of this month. But, according to my research, the current maintenance corporation is about to resign and is seeking a new management company to over see the maintenance of the property. My dad has made our client aware of this. But I am worry if the client will become upset with us, if the new management company is incompetent or raises the maintenace fees at their property. Should I check into the background of this new incoming Management company as well?
Please and thank you.
2007-08-22 11:14:25 · 8 answers · asked by :-( Red Robin - The Doormat 2 in Business & Finance ➔ Renting & Real Estate
There are two issues with this. First, your disclosing all known information about the property to your client, as required by law. Second, there must be SOME reason that the management company is changing. I would find out why that change is happening. I think you will find that the reason is rather simple and not of any real concern. We have two pieces of property that are managed by a separate maintenance company as well. Fees can't be raised unless there is justifiable reasoning and it is put to a vote. The other piece of property, we have no management company. Each owner is responsible for an equal part of the "normal" up keep and everything is voted on and requires a 100% aagreement. We have run into some issues, more because of the age difference in the owners and what they believe is right and what others think is just common sense.
I think that if your client fees comfortable with the other residents, then issues will be minimal.
2007-08-24 08:14:03 · answer #1 · answered by Just Life, Trying To Live It. 5 · 1⤊ 0⤋
The Management company does not have the ability to raise fees only the Board of Directors can do that. The Management company can only do as directed by the Board.
If you have informed the buyer of the situation he has no reason to become upset with you or your Father. The best thing you can do for him is keep him well informed.
2007-08-22 12:02:06 · answer #2 · answered by Rosie 4 · 1⤊ 0⤋
How do you know your buyer wouldn't be bring in his own maintence group? Or have several companies bid for it.
If the new buyer is looking at his Cap Rate, then yeah, he'd want to a solid company, but also the best he could do for the least amount of money. I'd make sure they know what, if any deferred maintence there by be by this company leaving, but that will all be part of the paperwork.
I would say don't worry about it, but the buyer should be aware that this group is leaving. He might be able to negoitate with them for an extra 6 months so that he can find his own crew.
Again, if the new buyer is looking at his Cap rate, he might be thrilled that this company is leaving.
2007-08-22 11:29:36 · answer #3 · answered by saberhilt 4 · 1⤊ 0⤋
Be careful of the information that you provide. You could be liable for any information that you provide, especially if the information proves to be incorrect. I would have the client sign an addendum stating that they are aware of the possibility of new management for the condos and that they hold you harmless for any information that is unknown, such as maintenance increases/hoa fee increases or creditability of the new maintenance company. Also state that the client is responsible for obtaining such information, if they wish to do so. I hope this helps!!
2007-08-22 11:29:24 · answer #4 · answered by Broker/Owner 2 · 1⤊ 0⤋
Simply put, yes. You may even want to research some management companies yourself... in search of the one YOU would choose if it were going to be YOUR property. If the current company isn't yet resigned, there probably isn't a contract in place for the new company that has to fill the position. You may be able to influence that decision if you can prove enough of a case as to WHY you NEED "company X" as the new management company.
2007-08-22 11:26:23 · answer #5 · answered by Anonymous · 1⤊ 0⤋
In an interest to go beyond the call, sure I would. That way if there is an issue you can tell your father and he can discuss it with the client.
2007-08-22 11:31:21 · answer #6 · answered by Anonymous · 1⤊ 0⤋
No lawyer but I would information gathered is knowledge, and knowledge of a possible problem is being forewarned, and makes you ready to now be blindsided. Again just my opinion
2007-08-22 11:27:23 · answer #7 · answered by Pengy 7 · 1⤊ 0⤋
Knowledge is power!
2007-08-22 12:43:55 · answer #8 · answered by dreamgirl 5 · 1⤊ 0⤋