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Property Management Company Disputes

What Are Property Management Company Disputes?

Property management company disputes occur when there is a breakdown in the relationship between a condominium board or property owner and the third-party management company hired to oversee the property’s day-to-day operations. These disputes can stem from poor performance, financial mismanagement, lack of transparency, breach of contract, or conflicts of interest — and often require legal intervention to resolve.

In both residential and commercial settings, property managers are entrusted with significant responsibilities. When those duties are neglected or abused, the impact can be costly for owners, boards, and tenants alike.

Common Causes of Disputes with Property Management Companies

Condominium disputes commonly arise from:

Financial Mismanagement – Allegations of improper bookkeeping, misuse of reserve funds, inflated invoices, or failure to collect condo fees can trigger serious conflict.

Negligent Maintenance – Failure to perform timely repairs or upkeep of common areas often leads to frustration among residents and liability exposure for the board.

Lack of Transparency – Boards and owners may be denied access to essential financial records, contracts, or maintenance logs, raising concerns about oversight and accountability.

Breach of Contract – If a property manager fails to fulfill their contractual obligations—such as enforcing rules or securing insurance—they may be in legal breach.

Overstepping Authority – Disputes arise when property managers act without proper board approval, sign contracts, or make unilateral decisions beyond their scope.

Poor Communication – Delayed or unprofessional communication with residents, vendors, or the board often leads to escalated tensions and loss of trust.

Legal Remedies for Property Management Disputes

Parties involved in condominium disputes may seek various legal remedies, such as:

Contract Termination – If the management company is in breach of contract, the board or owner may terminate the agreement and seek damages.

Injunctions – In urgent cases, such as misuse of funds or failure to turn over records, courts may order immediate action to protect the property and its residents.

Mediation and Arbitration – Many management agreements include clauses requiring disputes to go through alternative dispute resolution before litigation.

Litigation – When negotiations fail, court action may be necessary to recover losses, enforce compliance, or remove the management company.

Board Oversight Reviews – Legal review of board actions (or inactions) can determine whether the board failed in its duty to supervise the property manager effectively.

How We Can Help

At ME Law, we help condo boards, landlords, and commercial property owners resolve disputes with property management companies. Our services include:

Contract Review and Enforcement – We analyze management agreements to determine rights, obligations, and exit strategies.

Dispute Resolution – We represent clients in negotiations, mediation, arbitration, or litigation to ensure accountability and protect property value.

Document and Records Recovery – We help clients obtain financial records, maintenance logs, and communication archives that management companies refuse to provide.

Strategic Guidance – We advise boards and owners on how to transition to new management and avoid future legal pitfalls.

Fiduciary Oversight – We investigate board and management conduct to ensure compliance with provincial condo and real estate regulations.

Take the Next Step

A property manager should protect your investment—not put it at risk. If you’re dealing with a management company that’s failing to deliver or acting against your interests, ME Law is ready to help. Contact us today for a strategic legal assessment and practical solutions to move forward.

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