How to Terminate a Condo Management Contract in Massachusetts

To end a condo management agreement, follow the agreement. The notice period, how notice must be delivered, any cure period and any fee are written in your contract. Your bylaws set how the board has to approve the decision. Get those right before you send anything.

Step 1: Read the termination clause

Find these items in the agreement:

• Term and renewal date. When does the current term end, and does it renew automatically?
• Termination for convenience. Can you leave without a reason, and with how much notice? Many agreements ask for 30 to 90 days, but yours may differ.
• Termination for cause. What counts as cause, and is there a cure period for the manager to fix it?
• Fees. Is there a termination fee or a charge for transition help?
• Delivery. How must notice be sent, and to what address?

Step 2: Check your governing documents

Your master deed and bylaws, along with M.G.L. c. 183A, describe who has authority to hire and replace a managing agent and how the board acts. Make sure the vote follows the bylaws and is recorded in the minutes.

Step 3: Decide: for cause or for convenience

If the manager has breached the agreement, document it. Dates, emails and missed deadlines matter. If you are leaving without cause, the convenience clause and notice period apply. Mixing the two in one letter can create confusion, so choose the basis and say it plainly.

Step 4: Line up the replacement first

Do not give notice before you know who comes next. Interview candidates, score them and have the new agreement ready to sign. A gap with no manager leaves bills unpaid and emergencies unanswered. See questions to ask in a manager interview.

Step 5: Send written notice the way the agreement says

Use the delivery method named in the contract, such as certified mail or a specific email address. Keep proof of delivery. State the effective date, the basis for termination and a request for the items you need returned.

A notice usually includes:

• The name of the association and the agreement date.
• That the board has voted to terminate, with the vote date.
• The effective termination date.
• A request for records, funds, passwords and contracts, with a deadline.

Step 6: Ask for what the association is owed

At the end of the agreement the manager should return:

• Association records and files, in electronic form where possible.
• Control of bank accounts and any funds held.
• Vendor contracts, insurance certificates and warranties.
• Owner and tenant contact lists, and a delinquency report.
• Keys, access codes and website or software logins.

Ask for these in writing and set a date. A planned transition runs about 45 to 60 days. See what a transition should look like.

Mistakes that cost boards money

• Sending notice by the wrong method or to the wrong address.
• Missing the auto-renewal date by a few days.
• Stopping payments instead of giving notice.
• Giving notice with no replacement lined up.
• Leaving the handoff of funds and signatories to chance.

Frequently asked questions

Can a condo association terminate a management contract early?

Often yes, but the right depends on your agreement. A convenience clause, a for-cause clause and any fees all come from the contract. Read it, and have association counsel confirm before you send notice.

How much notice is required?

It depends on the agreement. Many contracts ask for 30 to 90 days, but check yours and the delivery method.

Does the board need to vote?

Follow your bylaws. In most associations the board votes and records the decision in the minutes.

What happens to the association’s money when we terminate?

Funds should be in accounts in the association’s name. Your notice should ask for a final accounting and any changes to bank signatories. Do this in writing.

Part of our guide to hiring, switching or firing a condo manager. Read next: what a management agreement should include. Need help? Contact Green Ocean.

This article is general information, not legal advice. Termination rights depend on your agreement and governing documents. Have association counsel review before you give notice.