I work as a secretary/aid for my father who is a Real Estate Lawyer. He has told me not to worry about it, but I'm his daughter and I am always concern for him.The details are: A client has bought a condo/stack townhouse. I have researched and check the background of the management corporation that manage maintenance there. They are stable and their money pot is sufficient for any foreseeable future expenses. The purchaser (our client) will take over the home at the end of this month. But, according to my research, the current maintenance corporation is about to resign and is seeking a new management company to over see the maintenance of the property. My dad has made our client aware of this. But I am worry if the client will become upset with us, if the new management company is incompetent or raises the maintenace fees at their property. Should I check into the background of this new incoming Management company as well? Please and thank you.

Simply put, yes. You may even want to research some management companies yourself... in search of the one YOU would choose if it were going to be YOUR property. If the current company isn't yet resigned, there probably isn't a contract in place for the new company that has to fill the position. You may be able to influence that decision if you can prove enough of a case as to WHY you NEED "company X" as the new management company.

No lawyer but I would information gathered is knowledge, and knowledge of a possible problem is being forewarned, and makes you ready to now be blindsided. Again just my opinion

Be careful of the information that you provide. You could be liable for any information that you provide, especially if the information proves to be incorrect. I would have the client sign an addendum stating that they are aware of the possibility of new management for the condos and that they hold you harmless for any information that is unknown, such as maintenance increases/hoa fee increases or creditability of the new maintenance company. Also state that the client is responsible for obtaining such information, if they wish to do so. I hope this helps!!

How do you know your buyer wouldn't be bring in his own maintence group? Or have several companies bid for it. If the new buyer is looking at his Cap Rate, then yeah, he'd want to a solid company, but also the best he could do for the least amount of money. I'd make sure they know what, if any deferred maintence there by be by this company leaving, but that will all be part of the paperwork.I would say don't worry about it, but the buyer should be aware that this group is leaving. He might be able to negoitate with them for an extra 6 months so that he can find his own crew.Again, if the new buyer is looking at his Cap rate, he might be thrilled that this company is leaving.