Does the executive board of a condo association have authority to select a property management firm without a owners vote?

ANSWERS:

Unless the By-Laws indicate differently, management of the Condominium’s business affairs rests with the Board of Managers.  Generally the Board would not need unit owner consent to hire a managing agent.
Levine & Montana
Lewis Montana
PO Box 668
Peekskill NY 10566-0668
(914)737-3515
levine_montana@msn.com

Generally speaking, the Board has the right to decide to hire a management company without an owner vote. The owners elect the Board to govern the Association. If the Board feels that a management company is best, they generally have the right to hire one.

David G. Hellmuth
Attorney at Law
P: (952) 746-2107
F:  (952) 941-2337
dhellmuth@hjlawfirm.com
8050 West 78th Street 
Edina, MN 55439

Short answer: Yes. The Board, as the representatives of the owners, have the authority to enter into contracts on behalf of the Association (unless the Governing Documents take that power away from the Board). State law sets forth which duties cannot be delegated by the Board to a management company (or anyone else) but which must remain with the Board.

Sara A. Austin
Austin Law Firm LLC
226 E. Market St.
York, PA 17403
717.846.2246 phone
717.846.2248 fax
saustin@austinlawllc.com

Absent a restriction to the contrary in the governing documents of the association, the Executive Board of a Condominium Association has the authority to select a property management firm without a vote of the association members. However, I have seen governing documents for
“self-managed” associations that require a membership vote to approve the hiring of a property management firm.

Koeberle Law Firm LLC
Brian Koeberle
3 Penn Center West 
Suite 411
Pittsburgh PA 15276
(412) 788-9554
brian@koeberlelaw.com

Yes, the power to hire a property manager is generally a duty assigned to  the Board. The governing documents, of course control, and not all governing documents are the same. Generally, however, the power to hire a property manager appears in the By-Laws at approximately Article VI, and will be labeled, “Board Powers” or something to that effect. Usually among the very first of the Board powers listed will be the power to hire a managing agent.

Griffin Alexander, P.C.
Robert C. Griffin, Esq.
415 Route 10 
2nd Floor
Randolph NJ 07869-2100
(973) 366-1188
rgriffin@lawgapc.com

It is not clear from the question whether the reader is asking whether a single board member has such authority, whether a committee formed by the association’s governing board has such authority, or whether the association’s governing board itself has the authority to vote in favor of the retention of a property management firm without a vote of the unit owners. In responding to the question, I assume that the reader is asking whether the governing board of a condominium association has such authority. The governing documents for most condominium associations provide that the property, affairs and business of the association are managed by its governing board. Thus, typically, the governing documents vest in the governing board the exclusive authority to select and employ a management company to oversee, supervise and carry out responsibilities of the governing board. Therefore, such would not require a vote of the owners.

Martin Calabar
Becker & Poliakoff
67 Park Place, Suite 702
Morristown, NJ 07960
Tel: 973.898.6502
Fax: 973.898.6506
mcabalar@bplegal.com