Legal Question in Real Estate Law in New York
Property Management company violated agreement
I own a 2-family rental property in NY State. I had to move out of state so I hired a Property Management company in 2001. I recently called them because I had not received a rent check for last month. I was then informed that some work was done on my property and they then mailed me an invoice for $2,975. About one half of this amount for for purchasing and installing new carpeting, and several other items are just listed ''materials''. The management agreement that we signed clearly states that the manager ''shall not spend more than $400.00 in repairing one property during any 1-month period unless first receiving written consent from the owner''. With this being the case, do I have any legal obligation to pay this bill for work I didn't approve? Management claims this was needed due to destruction from the previous tentant. I also want to sell this property but can the management company legally prevent me from selling it if there is a dispute over this bill? Thank you.
2 Answers from Attorneys
Re: Property Management company violated agreement
It sounds as if the management company breached their agreement. Feel free to call my office to schedule a consultation to discuss your options.
Re: Property Management company violated agreement
It sounds as if the management company breached their agreement. If the workman doing the work have not been paid, they may file a mechanic's lien against the property. You may have to sue the manager.
They cannot prevent a sale of the property; but if they put a Tenant from hell in the place, it might put off potential buyers.