Easton, MD asked in Contracts for Maryland

Q: can an hoa obligate funds in current budget for contracted services in the following year?

For example, we are planning to do a reserve study in 2021. It is in the 2020 budget, but since the work is not being done in 2020 can we sign a contract for 2021 and have the work done in 2021.

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1 Lawyer Answer
Marie-Yves Nadine Jean-Baptiste
Marie-Yves Nadine Jean-Baptiste
  • Towson, MD
  • Licensed in Maryland

A: Yes, you can always contract for future work--some vendors like to get paid for their work in advance to secure your spot. Check the HOA's governing documents and see if this is against the policies set out in the documents. If so, then you should follow it. If not, then contracting for future services is no issue.

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