HOA glossaryInsurance & operations

What is a management agreement?

The contract between the association and its management company, defining scope, fees, term and termination.

The agreement should state the base scope precisely, list what is charged additionally and at what rate, set the term and renewal mechanics, and define termination — including notice, cause, and what happens on the way out.

The transition provisions are the ones boards regret ignoring. Who owns the data, how quickly records and funds are returned, in what format, and at what cost, determine whether a change of manager takes two weeks or six months.

Ancillary revenue is worth understanding: transfer and document fees, late fee splits, and vendor rebates all belong on the table during negotiation, because they are being earned in the association's name.

Why it matters to a board

Negotiate the exit before you sign the entry. Data ownership and return timelines are the clauses that matter most later.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

How migration works

Related terms

Community association managerThe professional or firm engaged to administer the association's day-to-day operations under the board's direction.Transfer feeA charge for the administrative work of transferring an ownership record and producing the disclosure documents a sale requires.Vendor RFPA structured request for competing bids on the same defined scope of work, so proposals can be compared honestly.Fidelity bondCoverage protecting association funds against theft by directors, employees, or the management company handling them.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
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