A condominium is a combination of co-ownership and individual ownership. Those who own an apartment house or buy a condominium are co-owners of the land and of the halls, lobby, and other common areas, but each apartment in the building is individually owned by its occupant. In some States, the owners of the various units in the condominium have equal voice in the management and share an equal part of the expenses. In other States, control and liability for expenses are shared by a unit owner in the same ratio as the value of the unit bears to the value of the entire condominium project. The bigger condominium owners would have more say-so than the smaller condominium owners.
A Montana Management Agreement between a Condominium Association and Management is a legally binding contract that outlines the responsibilities, obligations, and terms of the agreement between the association and a professional management company. This agreement aims to establish a clear understanding of the roles and expectations of both parties involved in managing the condominium property. Below, we will delve into the details of what is typically covered in a Montana Management Agreement, along with some variants that exist: 1. Scope of Services: The agreement should specify the scope of services the management company will provide, which may include financial management, maintenance coordination, vendor management, property inspections, enforcement of association rules and regulations, record-keeping, and communication with owners and board members. 2. Term: The agreement should define the duration of the contract, including the start and end dates, as well as provisions for termination or renewal. 3. Fees and Compensation: This section outlines the management fees, expenses, and compensation structure, including any additional fees for specific services or circumstances. Common fee structures may include a flat fee, percentage-based fees, or a combination of both. 4. Authority and Decision-Making: This section clarifies the authority granted to the management company, such as making financial decisions within a certain limit, overseeing maintenance and repair projects, hiring contractors, and enforcing association rules. 5. Financial Management: The agreement should outline the management company's duties regarding financial matters, including maintaining financial records and accounts, managing budgets, collecting assessments and fees, paying bills and invoices, preparing financial statements, and coordinating annual audits or reviews. 6. Communication and Reporting: This section sets expectations for communication between the management company, board members, and owners. It may include requirements for regular reports, meetings, response times, and modes of communication. 7. Insurance and Liability: The agreement should address insurance requirements and how liability and claims will be handled. This ensures that both the association and management company are adequately covered in case of any incidents or damages. 8. Maintenance and Repairs: This part defines the responsibilities of the management company regarding property maintenance, repairs, and preventative measures, as well as protocols for emergency situations. 9. Dispute Resolution and Termination: This section outlines the process for resolving disputes between the association and management company and the conditions under which either party can terminate the agreement. Types of Montana Management Agreements: 1. Full-Service Management Agreement: This agreement encompasses a wide range of services, including day-to-day operations, financial management, maintenance, and more. 2. Financial Management Agreement: This type of agreement primarily focuses on the financial aspects of the association, including bookkeeping, budgeting, and financial reporting, rather than comprehensive management services. 3. Maintenance and Repair Agreement: In situations where the association handles most management tasks but requires assistance with maintenance and repair coordination, this type of agreement can be established. 4. Short-Term or Project-Specific Management Agreement: For specific projects or temporary management needs, such as construction projects or administrative support during board transitions, a short-term or project-specific agreement may be utilized. Overall, a Montana Management Agreement between a Condominium Association and Management acts as a crucial document that defines the working relationship and responsibilities between the association and the management company, ensuring the efficient management and operation of the condominium property.