Legal Question in Real Estate Law in California

Our condominium has a property manager who has set up bank accounts, operating, reserve and CDs for the property’s income and expenses. We would like to have two signatures required on checks; one from the property manager and one from a Board member.

The property manager says this cannot be done because of California Real Estate Law – no one can sign on a property trust account with a Real Estate Licensee except the Real Estate Licensee or staff.

Is this so?

Asked on 7/26/10, 11:52 am

4 Answers from Attorneys

Mark Muntean Mark Muntean, Attorney at Law
0 users found helpful
0 attorneys agreed

No. The property manager is incorrect. California law requires the opposite.

Cal. Civ. Code Section 1365.5(b) actually provides that the signatures of at least two persons, who shall be members of the association's board of directors, or one officer who is not a member of the board of directors and a member of the board of directors, shall be required for the withdrawal of moneys from the association's reserve accounts.

Read more
7/26/10, 3:12 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE
0 users found helpful
0 attorneys agreed

Have the Board tell the property manager to take a mandatory two-week vacation. Have the books audited while the manager is on vacation.

Read more
7/26/10, 3:20 pm
Anthony Roach Law Office of Anthony A. Roach
0 users found helpful
0 attorneys agreed

I agree with Mr. Muntean's response. It would appear that the manager is confusing trust accounts held by real estate broker's, which always hold other people's money, with the association's accounts.

Read more
7/26/10, 3:26 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law
0 users found helpful
0 attorneys agreed

I too suggest an audit.....there is a fair possibility that giving an excuse so far-fetched is an attempt to throw the membership off track; or if not and the guy is honest, he's probably making some other bad decisions that would show up in an audit.

Read more
7/26/10, 6:09 pm

Related Questions & Answers

More Real Estate and Real Property questions and answers in California

Looking for something else?

Get Free Legal Advice

88273 active attorneys ready to answer your legal questions today.

Real Estate and Real Property Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Michael E. HendricksonAttorney & Counsellor at LawAlexandria,
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now