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Q.Who can write checks and sign contracts for the HOA?
A.Pursuant to California law, the signatures of at least two directors, or of one officer and one director, are required for withdrawals from the homeowners association's ("HOA's")reserve account(s). Withdrawal requirements for other HOA accounts are usually set in the governing documents (Bylaws and Declaration of Covenants, Conditions, and Restrictions), but if they are not, the Board can establish its own requirements.
As to contracts, generally the Board can execute a contract unless: (a) the homeowners association governing documents require homeowner approval or (b) the board has delegated the decision to a particular officer, committee, or manager.
Although its prudent to require any contract involving an HOA be signed by at least two officers, California law provides that a contract signed by a single officer can be binding even if there was no HOA meeting, or board resolution, approving it. To avoid liability for non-approved contracts, the Board should exercise extreme care in selecting officers, and provide written notice to all of its vendors that no contract should be considered valid unless the vendor receives a board resolution authorizing the agreement. condo, condominium, townhouse, townhome, town home, home owner association, condominium laws, condo laws, california condo laws, condominium codes, HOA laws
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