To ensure legal compliance and minimize risks, condominium managers should:
1. Always Check the Contract for Assignment Clauses
Look for clauses that prohibit or restrict assignment.
Ensure that necessary approvals are obtained before assigning a contract.
Example: If a management company plans to sell its contracts, it must notify the condominium boards and obtain approval if required.
2. Ensure Proper Documentation for Assignments and Delegations
Use written agreements when transferring contractual rights.
If possible, use novation agreements to transfer all liabilities to the new party.
Example: A security firm reassigns its contract to another provider. The board requests a novation agreement to ensure the new company assumes full responsibility.
3. Communicate with the Condominium Board Before Assigning or Delegating
Boards should be informed before significant contract changes occur.
If a contract is being assigned or duties are being delegated, ensure the board has input and oversight.
Example: A condominium manager subcontracts accounting services to another firm. Before doing so, they consult the board and confirm that financial records remain accessible.
