Consumer Law, Warranties Property Management Contract

[homeowner]

The HOA I am a member of recently discovered that our Property Management Company has been increasing their annual compensation by more than our contract allows for. When we approached the company, they indicated they only collected what was approved for in the budgets by the previous boards. However, the Management Company prepares our budget. Do they have a right to increase the amount over the contract amount? Are they responsible for informing the board that they are doing so? Do we have any recourse to go back and recoup the overcharges? Also, now that we are aware of the discrepency, can we reduce the compensation to what is should be in 2009, assuming the correct annual increases?
Also, we generally contact our legal council through the Management company; should we find another lawyer?

 

[seniorjudge]

What do your CCRs say in answer to your questions?

 

[homeowner]

What do your CCRs say in answer to your questions?

Sorry, I don't know what a CCR is. The present property manager (of the management company) indicated that they were just following the budget (that they wrote). The owner of the company hasn't responded.

 

[seniorjudge]

CCR = covenants, conditions, restrictions

 

[homeowner]

CCR = covenants, conditions, restrictions

our paperwork indicates that the board is to conduct the business of the community, and can hire/appoint an outside company to perform tasks for the community. We have a separate contract with the management company where these questions come into play.