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