Can this agreement be signed electronically?

Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and retention requirements are met.

Who must sign on behalf of the association?

An authorized officer or designee designated by board resolution should sign; maintain meeting minutes or a corporate resolution evidencing the board's authorization.

Is notarization or witnesses required?

Typically no for a management agreement, but notarization or witnesses may be required if the document is recorded or conveys an interest in real property; check state recording rules.

How do I amend the agreement later?

Follow the amendment clause: usually written amendment signed by both parties and approved by the board when required by bylaws or state law.

What if the manager exceeds authority?

Actions beyond delegated authority may constitute breach; remedies include damages, injunctions, or termination as provided in the agreement and under applicable corporate law.

How long should I retain executed copies?

Keep originals for the agreement term plus a recommended minimum of three years; follow IRS, HIPAA, or state-specific retention rules as applicable.

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Management Agreement for Condominium Association

Management Agreement for Condominium Association

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What a Management Agreement for Condominium Association Covers

A Management Agreement for Condominium Association is a written contract between a condominium association and a professional manager or management firm that sets out the manager's authority, duties, term, compensation, insurance, recordkeeping, and reporting obligations. It defines operational scope (maintenance, vendor oversight, assessments collection, reserve management), decision-making limits, termination grounds, and confidentiality requirements. The agreement should align with the condominium declaration, bylaws, and state corporation laws and may include provisions addressing indemnification, insurance, and dispute resolution. Electronic execution is generally permitted under federal and state e-signature laws.

Why Associations Use a Formal Management Agreement

A clear, written management agreement establishes roles and accountability, reduces disputes, enables consistent budgeting and vendor oversight, secures insurance and indemnity protections, and documents authority for assessments and collections in line with governing documents.

Who Typically Prepares or Signs This Agreement

Typical participants include the condominium board, the selected management company, and sometimes legal counsel or an outside accountant.

Condominium association boards — Adopt and authorize the agreement, approve fees and contract amendments, and monitor manager performance.
Professional management firms — Deliver services, maintain insurance, provide reports, and accept delegated operational authority under contract terms.
Homeowner committees or owners — May review terms or request clarifications when contracts affect assessments or services.

Final execution usually requires signature by the board president or an authorized officer and an authorized representative of the management firm.

Essential Clauses to Include in the Agreement

A professional agreement should be comprehensive and precise to avoid ambiguity and future disputes.

Scope of Services

List services in detail (maintenance, accounting, collections, vendor management, emergency response) and state any excluded services to prevent scope creep.

Term and Termination

Specify start and end dates, renewal mechanics, required notice periods, cure opportunities, and termination for convenience or cause with related fees.

Compensation and Fees

Detail management fees, fee formulas, reimbursable expenses, billing frequency, late payment interest, and how fee changes are approved.

Insurance and Indemnity

Require manager insurance (general liability, professional liability, workers' comp) and mutual indemnification language to allocate risk and defend claims.

Authority and Limitations

Define delegated authority (contract thresholds, emergency spending limits, vendor selection) and actions needing board approval.

Reporting and Records

Mandate regular financial reports, meeting minutes handling, access to records, audit rights, and retention standards aligned with legal requirements.

Step-by-Step: Completing the Management Agreement

Follow these steps to prepare, approve, and execute the agreement with minimal friction.

01

Gather Documents: Collect declaration, bylaws, recent budgets, and insurance certificates.
02

Draft Agreement: Populate parties, scope, fees, term, and exhibits.
03

Board Review: Place on board agenda and obtain approval per bylaws.
04

Execute and Distribute: Obtain signatures, notarize if required, and file copies with association records.

Typical Process Flow from Draft to Active Management

A standard workflow moves from drafting through approval to execution and onboarding.

Draft: Create the agreement and attach exhibits such as budget and service schedule.
Approve: Board evaluates terms in a meeting with quorum and minutes recorded.
Sign: Authorized officers sign; consider notarization or RON if needed.
Onboard: Manager assumes duties, vendors notified, and accounts transferred as specified.

Digital Execution Workflow Settings to Consider

Configure e-signature workflow to match the agreement's signing order, authentication, and retention needs.

Field	Configuration
Signature Type	Electronic signature with audit trail and timestamp
Authentication	Email link plus optional SMS code or ID verification
Routing Order	Sequential or parallel signing based on board authorization
Retention	Store signed PDF plus audit report for statutory retention period

Technical and Security Considerations for eSigning

Ensure your chosen eSignature platform supports required formats, authentication, and compliance standards before executing.

Supported Formats: PDF, Word DOCX
Integrations: CRM or accounting systems
Compliance: ESIGN, UETA, HIPAA options

Verify platform encryption, access controls, audit trails, and where necessary obtain a BAA for HIPAA-covered entities; keep copies in secure storage per retention rules.

Typical Timelines and Processing Expectations

While there is no fixed federal filing deadline for management agreements, certain internal and operational timelines are common.

Board Approval Timeline:

Allow 2–6 weeks for drafting, notice, and board vote

Manager Onboarding:

Expect 7–30 days for vendor transfers and account setup

Notarization or RON:

Can be completed same day if parties are available

Distribution of Executed Copy:

Deliver to owners and file in records within 7 days

Insurance and Vendor Notices:

Allow 14–30 days to confirm insurance and notify vendors

Key Milestones from Proposal to Active Management

Sequence the project into clear milestones to ensure accountability and a smooth transition.

01

Proposal Prepared

Draft and circulate a proposed agreement for review.

02

Board Consideration

Discuss and approve terms at a properly noticed meeting.

03

Execution

Signatures obtained and originals stored.

04

Operational Handover

Manager begins delivering services and submitting reports.

Common Preparation Errors to Avoid

Vague service descriptions that leave material duties unspecified and create disputes about scope and extra charges.
Missing approval steps or improper board authorization that render the contract voidable or unenforceable.
Failing to require adequate insurance and indemnity, exposing the association to uncovered liabilities and losses.
Incorrect party names, dates, or missing exhibits that delay execution and can invalidate enforcement efforts.

Risks and Consequences of an Incomplete or Incorrect Agreement

Breach Liability: Damages and litigation exposure

Unauthorized Spending: Association may incur unrecoverable costs

Insurance Gaps: Claims denied for missing coverage

Privacy Violations: HIPAA or data breach penalties

Termination Costs: Early termination fees or transition expenses

Tax Reporting Errors: Incorrect 1099 handling or backup withholding

Required Information and Key Data Fields

Association Name: Legal entity name

Association Address: Street, city, state, ZIP

Board Representative: Name and title of authorized signer

Manager Contact: Business name and primary contact

Insurance Details: Policy types and limits

Fee Schedule: Base fees and reimbursables

Who Signs and Why Their Role Matters

Board President

The board president or another authorized officer signs on behalf of the association, confirming board approval and delegation of authority; ensure the officer's authority is documented in meeting minutes or a corporate resolution.

Manager Officer

An authorized manager or company officer signs to accept the terms, obligate the management firm to provide insurance and services, and to confirm authority to bind the firm to contract terms.

Real-World Examples of How Associations Use These Agreements

Two representative scenarios show typical uses and outcomes when the agreement is properly drafted and executed.

Large High-Rise Transition

A 200-unit high-rise engaged a management firm to centralize vendor contracts and collections, reducing delinquency rates by streamlining billing and enforcement procedures.

The manager assumed vendor procurement responsibility under a clearly defined spend limit.
Clear onboarding exhibits, monthly reporting, and defined termination rights enabled a smooth transition and stronger budget controls while preserving board oversight.

Small Association Outsourcing

A 20-unit condo association hired a manager for day-to-day operations and emergency response to avoid volunteer burnout.

The contract used quarterly reporting and modest management fees.
Explicit task lists and an insurance requirement protected the association; the agreement included a 60-day termination clause to keep governance flexible for owners.

How This Agreement Compares with Related Contract Types

Compare the management agreement to similar documents to choose the correct contract type for your needs.

Document Type	Notarization Needed	Typical Parties	Common Use
Condo Management Agreement	usually no	association & manager	ongoing property operations
HOA Management Agreement	usually no	hoa & manager	community rule enforcement
Leasing Management Agreement	sometimes	owner & property manager	tenant leasing and rent collection
Professional Services Agreement		association & contractor	one-off professional engagements

Typical eSignature Vendor Pricing and Feature Comparison

Basic pricing and feature availability for common eSignature vendors used to execute agreements; signNow appears first per table convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About Management Agreements

Answers to common questions about validity, signatures, notarization, termination, and recordkeeping.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and retention requirements are met.
Who must sign on behalf of the association?
An authorized officer or designee designated by board resolution should sign; maintain meeting minutes or a corporate resolution evidencing the board's authorization.
Is notarization or witnesses required?
Typically no for a management agreement, but notarization or witnesses may be required if the document is recorded or conveys an interest in real property; check state recording rules.
How do I amend the agreement later?
Follow the amendment clause: usually written amendment signed by both parties and approved by the board when required by bylaws or state law.
What if the manager exceeds authority?
Actions beyond delegated authority may constitute breach; remedies include damages, injunctions, or termination as provided in the agreement and under applicable corporate law.
How long should I retain executed copies?
Keep originals for the agreement term plus a recommended minimum of three years; follow IRS, HIPAA, or state-specific retention rules as applicable.

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