Association Management Agreement for the United States

Association Management Agreement Template for United States

An Association Management Agreement is a legal contract used in the United States that establishes the relationship between a property management company and an association (such as an HOA, condominium association, or community association). The agreement outlines the scope of management services, responsibilities, compensation, and terms of the relationship. It typically includes provisions for financial management, maintenance coordination, administrative duties, and compliance with relevant state and federal laws.

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What is a Association Management Agreement?

The Association Management Agreement serves as the foundational document governing the relationship between professional management companies and property associations in the United States. This contract type is essential when associations seek professional management of their communities, typically due to the complexity of operations or desire for professional oversight. The agreement comprehensively details the manager's authority, duties, compensation, and accountability measures while ensuring compliance with federal regulations and state-specific property management laws. It's particularly important in states with strict property management regulations and is designed to protect both the association's interests and the management company's professional obligations.

What sections should be included in a Association Management Agreement?

1. Parties: Identifies the Association and Management Company, including full legal names and addresses

2. Background/Recitals: Establishes context of the agreement and basic facts about the association and property

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Authority: Formal appointment of manager and scope of authority

5. Term and Termination: Duration of agreement and conditions for termination

6. Manager's Duties and Responsibilities: Comprehensive list of services to be provided

7. Compensation: Fee structure and payment terms

8. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

What sections are optional to include in a Association Management Agreement?

1. Emergency Services: Procedures for handling emergencies outside normal business hours and emergency response protocols

2. Special Projects: Terms and conditions for handling non-routine projects or improvements beyond regular management services

3. Banking Arrangements: Specific procedures for handling association funds, including separate accounts and signing authorities

What schedules should be included in a Association Management Agreement?

1. Schedule A - Property Description: Detailed description of managed property including all common areas and facilities

2. Schedule B - Fee Schedule: Detailed breakdown of all management fees, service charges, and additional costs

3. Schedule C - Service Specifications: Detailed scope of services including maintenance, administrative, and financial management duties

4. Schedule D - Insurance Requirements: Specific insurance coverage requirements for both parties including types and minimum coverage amounts

5. Schedule E - Key Performance Indicators: Metrics and standards for evaluating manager's performance and service delivery

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Fair Housing Act: Federal law prohibiting discrimination in housing practices, crucial for residential association management

Americans with Disabilities Act (ADA): Federal law requiring reasonable accommodations for disabled persons in public spaces and facilities

Fair Labor Standards Act: Federal law governing employment matters including minimum wage, overtime, and record-keeping requirements

Internal Revenue Code: Federal tax regulations affecting association operations and management company's tax obligations

Fair Debt Collection Practices Act: Federal law regulating the collection of debts, including association assessments and fees

State Property Laws: State-specific regulations governing property rights, ownership, and management

State Corporate Laws: State-specific regulations governing corporate formation and operation, as associations are typically corporations

State Common Interest Community Acts: State-specific laws regulating planned communities and their management

State Condominium Acts: State-specific laws governing condominium associations and their management

State HOA Acts: State-specific laws regulating homeowners associations and their management

State Real Estate Management Laws: State-specific regulations governing property management activities and licensing

State Licensing Requirements: State-specific requirements for property manager licensing and certification

CAI Guidelines: Professional standards and best practices established by the Community Associations Institute

Municipal Codes: Local government regulations affecting property management and community operations

Zoning Laws: Local regulations governing property use and development within specific zones

Building Codes: Local construction and maintenance standards that must be adhered to in property management

Local Business Licensing: Municipal requirements for business operation permits and licenses

Fiduciary Duties: Legal obligations of trust and responsibility in managing association assets and operations

Insurance Requirements: Mandatory insurance coverage for property management operations and liability protection

Liability Provisions: Legal framework for allocating risk and responsibility between management company and association

Teams

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