Owners Asked to Sign a "Hold Harmless" Contract by the Board of Directors
My question involves a condominium located in the State of: Florida
My condo association has sent out a "hold harmless" for me to sign. The building is small, only 6 units, so we self-manage. The board wants the hold harmless for any decision they make that has negative results. If the hold harmless is not signed, the alternative is to hire an outside company to start managing, at increased cost.
I don't like giving up any right I may have to take them to court for a justifiable reason, but the association is comprised of owners, so I think they are likely to act in the best interest of the entire complex. I hope.
Are such hold harmless agreements pretty commonplace and accepted, or would it be a big mistake for me to sign this and I should opt for hiring an outside management company instead?
Re: Onwers Asked to Sign a "Hold Harmless" Contract by the Board of Directors
Our condo bylaws have an indemnity clause for the board. It excludes gross negligence and fraud.
Check your declaration. It may have something in it already. If it does not it is up to you to decide between higher cost and being more receptive to someone making a mistake.
Also most management companies will have a clause in the contract that will say that if someone at the management company makes a mistake, the association will hold them harmless and defend them. Some contracts say unless "gross negligence" and some just say "negligence."
Re: Onwers Asked to Sign a "Hold Harmless" Contract by the Board of Directors
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mihamih
Our condo bylaws have an indemnity clause for the board. It excludes gross negligence and fraud.
Check your declaration. It may have something in it already. If it does not it is up to you to decide between higher cost and being more receptive to someone making a mistake.
Also most management companies will have a clause in the contract that will say that if someone at the management company makes a mistake, the association will hold them harmless and defend them. Some contracts say unless "gross negligence" and some just say "negligence."
It seems to me that if an HOA only has six units, that each unit ought to have a member on the board, in which case, the issue would be moot.