Big Sky Co-op Cancellation Policy

This Cancellation Policy applies to all property owners, partners, and clients engaging with Big Sky Co-op for property management services, furnishing loans, and related offerings.

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1. General Cancellation Terms

1.1 Standard Cancellation Notice

• 30-Day Notice: Either party may terminate the management agreement with a 30-day written notice.
• Cancellation notices must be sent via email to info@bigskyco-op.com or through an official communication channel specified by Big Sky Co-op.

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2. Early Termination Fees

If the Agreement is terminated before 90 days of service, the following fees will apply to cover initial investments, operational costs, and service coordination:

1. Early Termination Fee: Equivalent to two months of management fees.
2. Service Recovery Fee: Charges for outstanding services rendered (cleaning, maintenance, onboarding, etc.).
3. Marketing Fee: Costs for listing creation, photography, and promotional campaigns.

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3. Loan and Financing Cancellation

If Big Sky Co-op has provided financing or loaned furnishings, equipment, or services, cancellation will trigger the following:

3.1 Loan Default Termination

• Immediate Termination: If loan repayment terms are breached, Big Sky Co-op reserves the right to immediately terminate services.
• Recovery of Furnishings and Equipment:
  • All loaned items will be retrieved by Big Sky Co-op.
  • A Recovery Fee will apply to cover retrieval and transportation costs.
• Outstanding Balance: The full amount of any unpaid financing becomes immediately due.

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4. Cancellation Fees for High-Risk Properties

For properties classified as high-risk (e.g., properties with frequent damage, non-compliance issues, or increased management complexity), stricter cancellation terms apply:

1. High-Risk Early Termination Fee: Equivalent to three months of management fees. A fee of $1,500 or three months of management fees (whichever is greater) will apply if a high-risk property is cancelled within the first 12 months of management.
2. Damage Assessment Fee: Covers inspection and potential repairs needed before offboarding.
3. Additional Recovery Costs: For any specialized services provided (e.g., security, maintenance, technology).

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5. Procedure for Offboarding

When a cancellation notice is received:

1. Final Inspection: Big Sky Co-op will conduct a thorough inspection of the property and assets.
2. Expense Reconciliation: A detailed report of outstanding fees, services, and loan balances will be provided.
3. Furnishing and Equipment Recovery:
   • Loaned items will be scheduled for retrieval.
   • Owners must provide access to the property within 7 days of the cancellation notice.
4. Final Payouts and Settlements:
   • Any remaining revenue or security deposits will be reconciled after deductions for fees and outstanding costs.

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6. Refunds

Refunds for prepaid services will be processed as follows:

• Full Refund: If cancellation occurs within 7 days of signing the Agreement and no services have been rendered.
• Partial Refund: If services have commenced, refunds will be prorated based on services provided.
• No Refund: For cancellations after the 7-day grace period or if significant services (e.g., marketing, onboarding) have already been rendered.

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7. Exceptions and Force Majeure

Cancellations due to force majeure events (e.g., natural disasters, government mandates) may waive certain fees at Big Sky Co-op’s discretion. Documentation of the event must be provided.

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8. Dispute Resolution

In case of disputes related to cancellations:

1. Mediation: Both parties agree to resolve issues through mediation before pursuing legal action.
2. Legal Jurisdiction: Any unresolved disputes will be governed by the laws of Montana.