2023 Connecticut General Statutes
Title 20 - Professional and Occupational Licensing, Certification, Title Protection and Registration. Examining Boards
Chapter 400b - Community Association Managers
Section 20-458. - Required provisions of contract. Sale or assignment of contract. Indemnification or hold harmless clause prohibited.

(a) No contract between a person contracting to provide association management services and an association which provides for the management of the association shall be valid or enforceable unless the contract is in writing and provides that the person contracting to provide association management services or, in the case of a business entity, a principal, officer or director of such entity:

(1) Shall be registered as provided in sections 20-450 to 20-462, inclusive, and shall obtain insurance as provided in section 20-460; and

(2) Shall not issue a check on behalf of the association or transfer moneys exceeding a specified amount determined by the association without the written approval of an officer designated by the association; and

(3) Shall not enter into any contract binding the association exceeding a specified amount determined by the association, except in the case of an emergency, without the written approval of an officer designated by the association.

(b) No contract to provide association management services shall:

(1) Be sold or assigned to another person without the approval of a majority of the executive board of the association; or

(2) Include any clause, covenant or agreement that indemnifies or holds harmless the person contracting to provide association management services from or against any liability for loss or damage resulting from such person's negligence or wilful misconduct.

(P.A. 90-306, S. 10, 15; P.A. 91-341, S. 9, 19; P.A. 11-195, S. 3; P.A. 19-177, S. 26.)

History: P.A. 91-341 amended Subdiv. (1) of Subsec. (a)(1) by adding provision requiring the person to “be registered as provided in sections 20-450 to 20-462, inclusive” and amended Subsec. (a)(3) by prohibiting the person from entering into a contract binding the association “exceeding a specified amount determined by the association, except in the case of an emergency”; P.A. 11-195 amended Subsec. (b) by designating existing provision re contract sale or assignment as Subdiv. (1) and adding Subdiv. (2) prohibiting hold harmless clause, covenant or agreement in contract; P.A. 19-177 amended Subsec. (a) by adding “provides that the person contracting to provide association management services or, in the case of a business entity, a principal, officer or director of such entity”, deleting “provides that the person contracting to provide management services” in Subdivs. (1), (2) and (3), further amending Subdiv. (1) by replacing “a bond” with “insurance” and making technical changes, and amended Subsec. (b) by replacing “management services” with “association management services”.