What should a community association manager do when assisting the association to enter contracts?

What should a community association manager do when assisting the association to enter contracts?

• A. Unilaterally decide on terms without counsel
• B. Seek legal or technical advice whenever necessary.
• C. Delegate all decisions to the board
• D. Avoid any contract that binds the association

Answer: (B)

When a community association is entering contracts, the manager’s role is to ensure proper due diligence by obtaining legal or technical guidance whenever necessary. Contracts often involve liability, insurance, indemnification, scope of work, budget, and compliance with governing documents and state law; having a professional review helps identify risks and ensures the terms protect the association. The manager should coordinate with counsel and guide the board through informed options rather than making terms unilaterally or avoiding contracts altogether. Relying on professional advice supports fiduciary duties and effective risk management, while unnecessary avoidance or handing all decisions to others can leave the association exposed or operations hampered.

When a community association is entering contracts, the manager’s role is to ensure proper due diligence by obtaining legal or technical guidance whenever necessary. Contracts often involve liability, insurance, indemnification, scope of work, budget, and compliance with governing documents and state law; having a professional review helps identify risks and ensures the terms protect the association. The manager should coordinate with counsel and guide the board through informed options rather than making terms unilaterally or avoiding contracts altogether. Relying on professional advice supports fiduciary duties and effective risk management, while unnecessary avoidance or handing all decisions to others can leave the association exposed or operations hampered.