KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More on property manager, HOA and unit owner contracts
May 27, 2022
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More on property manager, HOA and unit owner contracts
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Ken
          We have a large customer, gated community with a management corporation that carries the homeowner’s insurance for all homes/properties.   Each home has a residential security system with monitored smokes, low temp and high-water sensors. All monitoring is paid for by the corporation with repairs/modifications paid for by the individual homeowners. One building is a large condo building with a commercial fire alarm.
          Which contracts should be used?
 Name withheld
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Response
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          The property manager will sign a Residential All in One because that contract covers security and fire in a residence.  You can delete the 3 day notice of cancellation because the property manager is not a consumer.  While you could use a Commercial All in One with the property manager you would have to use the Fire All in One too or use several provisions in that contract by adding them to the Schedule Of Equipment and Services used with the Commercial All in One.  The property manager signs the contract because it’s the party paying you for the installation and monitoring charges.
          Each unit owner will sign a Residential All in One, which will state that the installation of the basic system is paid for by the HOA, as is the monitoring, but extras are paid by the unit owner and the unit owner agrees to the terms of service in the Residential All in One.
          Be careful allowing the property manager to sign the “master” agreement.  The property manager is an agent for the owner.  An agent signing for a disclosed principal is not liable on the contract, but the principal is contractual bound.  But to be bound the agent must be acting within the scope of the agent’s authority in order to bind the principal.  The agent does not have the ability to vouch for its authority.  The principal has to confirm the agents authority. 
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com