Hoa Who Signs Contracts

When it comes to homeowners associations (HOAs), a lot of legal documents are involved. Contracts play a significant role in the operation of an HOA. They establish legal obligations and responsibilities between the HOA, its members, and other parties. In this article, we’ll take a closer look at who signs contracts on behalf of an HOA.

First and foremost, it’s crucial to understand the structure of an HOA. Generally, an HOA is governed by a board of directors, typically elected by the members of the community. The board handles the day-to-day operations of the association and makes decisions on behalf of the HOA. When it comes to signing contracts, the board is typically responsible for doing so.

Board members are held to a fiduciary standard, which means they have a legal and ethical obligation to act in the best interest of the HOA and its members. This includes making decisions on contracts that will benefit the HOA as a whole. Before signing any contract, board members should thoroughly review and understand the terms and obligations outlined in the document. They should also ensure that the contract complies with all applicable HOA laws and regulations.

In some cases, the HOA may delegate contract signing authority to its manager or management company. However, this can vary depending on the HOA’s governing documents and state laws. Regardless of who signs the contract, the board should provide oversight and ensure that the contract is in the best interest of the HOA.

It’s also worth noting that some contracts may require a vote of the members before they can be signed. For example, if the contract involves a significant expense or a change to the HOA’s governing documents, it may require approval from a majority of the members before it can be signed by the board.

In conclusion, contracts are an essential part of an HOA’s operation, and it’s important to understand who signs them. Generally, the board of directors is responsible for signing contracts on behalf of the HOA, but the authority to sign may be delegated to the manager or management company in some cases. Before signing any contract, the board should review and understand the terms and ensure that it complies with all applicable laws and regulations. By doing so, the board can protect the interests of the HOA and its members.