Can the management company hold our association funds?

Practices vary and this is worth being precise about. Association operating and reserve accounts should be in the association's name, with the association as owner, and the management company as an authorized signer or agent — not in a pooled or commingled account controlled by the management company.

Ask who owns the account, whose tax identification number it uses, who the signers are, what dual-control exists for disbursements above a threshold, and what fidelity or crime bond coverage protects the balance.

Confirm the bond limit is at least equal to the maximum funds handled, including reserves. Several states set minimums; the contractual answer should exceed them.