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Handling property repairs fairly.

Joynt’s Operating Agreement separates repairs into two categories: Necessary Repairs and Discretionary Repairs and Improvements.

If the repair is necessary, the property doesn’t have to wait for everyone to agree.

The Operating Agreement defines a Necessary Repair as work required to:

  • maintain the property and shared personal property in substantially the condition it was in when it became available for owner use, or in its subsequently improved condition;
  • correct a condition that immediately threatens the integrity of the property or the health or safety of occupants, guests, or the public; or
  • respond to a demand or enforcement action from a government agency or an HOA that has the right to place a lien on the property.

Necessary Repairs must be performed as soon as reasonably possible and no later than 60 calendar days after the problem is discovered.

task-orangeFrom the Joynt Operating Agreement

“Necessary Repair is defined as all work required to: (i) maintain the Property, and Company Personal Property, in a condition reasonably equivalent to its/their condition on the date the Property first becomes available for Member use or, when such condition has subsequently been improved by the Company, in a condition reasonably equivalent to its/their condition on the date such improvement was completed; (ii) correct conditions which immediately endanger the integrity of Property, or the safety or health of the occupants, guests or public; or (iii) respond to a demand or enforcement action by a governmental agency or by a homeowners association with the right to lien the Property. Necessary Repair shall be performed as soon as reasonably possible, and in no event more than 60 calendar days following discovery of the condition requiring action.”

This means a disagreement about whether someone wants to pay for a Necessary Repair does not, by itself, allow the group to simply leave the required work undone.


 

There is already someone responsible for getting Necessary Repairs handled.

Rather than requiring the entire ownership group to manage every repair together, the Operating Agreement gives the Management Coordinator responsibility for facilitating Necessary Repairs.

The Management Coordinator hires a properly licensed and qualified person to perform the work, inspects the work after completion, and arranges payment from the group’s shared property funds.

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From the Joynt Operating Agreement

“The Management Coordinator shall facilitate Necessary Repair by hiring a properly licensed and qualified person to perform the work, inspecting the work following completion, and arranging for payment from Company Funds.”

The owners also establish a dollar threshold for larger repairs. Above that threshold, the Management Coordinator must obtain at least two bids before hiring someone.

Importantly, the Operating Agreement does not require another owner vote to choose between those bids. The Management Coordinator retains the authority to select from the proposals.

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From the Joynt Operating Agreement

“The Members shall establish a cost threshold above which the Management Coordinator shall be required to solicit and obtain at least two bids for the work prior to contracting for it. However, even when such requirement applies, the Management Coordinator shall retain the power to select from among such proposals without soliciting Member approval.”

The group initially establishes that threshold when the Operating Agreement is set up and can later change it with Majority Approval.


 

Necessary Repairs are treated as required property expenses.

The cost of Necessary Repairs is specifically included in the Operating Agreement’s Mandatory Expenditures, meaning it is part of the financial responsibility of owning and maintaining the property together. Generally, those costs are allocated among the owners according to their Percentage Interests, unless the agreement specifically provides otherwise.

So if the roof needs a required repair, for example, one owner generally cannot stop the repair simply because they would rather postpone the expense.

If the group’s normal monthly contributions are not enough to cover a Necessary Repair, the Operating Agreement also provides a process for a Special Assessment, which is an additional contribution from the owners to cover an extraordinary or unexpected expense.

For a Special Assessment needed to pay for a Necessary Repair, the proposed assessment is deemed approved on its proposed due date unless the owners approve another way to pay for the repair on time.

That keeps a disagreement over how to fund the work from automatically becoming a reason the required work cannot happen.


 

If the repair isn’t necessary, the group gets a say.

Not everything someone wants to change or fix qualifies as a Necessary Repair.

The Operating Agreement calls maintenance, repairs, and improvements that fall outside the Necessary Repair definition Discretionary Repairs and Improvements.

Those require owner approval.

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From the Joynt Operating Agreement

“Discretionary Repairs and Improvements shall include all maintenance, repairs and improvements that do not fall within the definition of Necessary Repair. Discretionary Repairs and Improvements require Member approval.”

Unless the Operating Agreement specifically requires a different voting threshold, owner decisions are made through Joynt’s voting system and require Majority Approval.

Votes are generally weighted according to each ownership interest’s Percentage Interest, and at least 50% of the total voting power must participate for a decision to receive owner approval.

So if one owner wants to replace perfectly functional countertops, upgrade landscaping, or make another optional improvement, they generally cannot make that decision for everyone on their own.


 

Owners also can’t just make repairs themselves and send everyone the bill.

This is an important protection in the Operating Agreement.

Except for the Management Coordinator acting within their authority, an individual owner cannot simply arrange repairs or alterations at the property, even “minor” ones, without the required owner approval.

They also are not automatically entitled to reimbursement for money or time they voluntarily spend unless the expenditure was specifically authorized by the Operating Agreement or explicitly approved by the owners.

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From the Joynt Operating Agreement

“No Member or Party (other than the Management Coordinator): (i) may perform, or arrange for, repairs or alterations of any kind at the Property, including ‘minor’ repairs, without Member approval; or (ii) shall be entitled to any reimbursement from the Company or from any Member for any expenditure of time or money unless such expenditure is specifically authorized by this Agreement or explicitly approved by the Members.”

That helps prevent a situation where one person independently hires a contractor and then expects everyone else to pay for a decision they never approved. Or perform work that may not be to the standards of the group or property.


 

What if the vote is tied?

For decisions that require Majority Approval, the Operating Agreement also addresses a true deadlock.

If equal voting power is cast for and against a proposal, the owners first look to the Operating Agreement to determine whether it already requires a particular course of action.

If it does, that requirement controls.

If it does not, the disagreement is ultimately resolved through court action or, if the owners chose arbitration when setting up their Joynt agreement, through binding arbitration. The court or arbitrator is directed to choose the course of action they believe is most likely to preserve and enhance the value of the property without placing unnecessary financial hardship on an owner.

The Operating Agreement also encourages owners to try mediation for disputes relating to the property or agreement. Mediation is voluntary, however, and is not required before pursuing another remedy.


 

What if one owner caused the damage?

There is a different rule when a repair is necessary because of something an owner, their guest, or another person using the property through them did or failed to do.

In that situation, the owner associated with that person is treated as the Responsible Member and must repay the full cost of repairing or replacing the damaged property. The Operating Agreement provides for a Reimbursement Assessment to collect that amount.

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From the Joynt Operating Agreement

“When damage or loss to the Property or to Company Personal Property occurs because of an act or omission by a Member’s Permitted User, such Member shall be deemed the Responsible Member and, notwithstanding anything to the contrary in this Agreement, shall repay the Company for the full cost of repair or replacement.”

So the other owners are not intended to permanently absorb the cost simply because the damaged item is part of the shared property.


 

What if we disagree about the cost?

The Operating Agreement separates the obligation to keep the property funded from the right to challenge a charge.

An owner must pay an Assessment in full and on time even if they dispute whether the Assessment was proper. They can pay under protest and then seek reimbursement or damages through court action or, if the owners chose arbitration when setting up their Joynt agreement, through arbitration.

The purpose is practical: a dispute between owners should not leave the property without the money needed to pay its bills or complete required work.


 

The goal is to keep a repair from becoming a bigger ownership problem.

Joynt doesn’t assume everyone will always agree about what the property needs.

Instead, the Operating Agreement establishes the process ahead of time:

Necessary repair? It needs to be handled, and the Management Coordinator is responsible for facilitating it.

Large Necessary Repair? The group can require multiple bids without turning contractor selection into another vote.

Optional repair or improvement? The owners decide together under the agreement’s voting rules.

Someone caused the damage? That owner can be responsible for reimbursing the full repair or replacement cost.

Disagreement about an Assessment? Pay it under protest so the property remains funded, then use the agreement’s dispute process.

True voting deadlock? The Operating Agreement provides a path for resolving it.

The result is that when something breaks, your group doesn’t have to invent the rules while also trying to solve the problem. The plan for making the decision, paying for the work, and resolving a disagreement is already built into your ownership structure.

Important Disclaimer

The information provided in this FAQ section is for general informational purposes only. All information on the site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site.

Joynt is not a law firm or an accounting practice and does not provide legal or tax advice. The content of these FAQs is not intended to be a substitute for professional advice. We strongly encourage you to consult with a qualified attorney and a licensed tax professional to address your specific needs and circumstances before making any decisions based on the information provided here.

Your use of this website and the information contained herein does not create an attorney-client relationship between you and Joynt or any of its employees.

 

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