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MarkM24 (North Carolina)
Posts: 8
Posted:
Our ARC has 3 members, one is a active RE agent anothers wife is active in RE and the third is a business man with no ulterior motives. Can the board of directors replace these two with more mainstream people?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Whats wrong with Realtors being on the ARC? It actually seems more beneficial to have people with Real Estate knowledge and experience than some that don't. Realtors know how to dress up homes and what keeps homes valuable to market. I would think that is an important quality to look for when you want a committee member to chair or be on the Archectual Control.

There's no conflict at all I can see. Seems to be a good thing overall than "Main stream" people who have no clue on real estate values and maintaining it.

Former HOA President
PetunkaM (Florida)
Posts: 1,009
Posted:
Where do you think a conflict of interest comes in? I agree with Melissa. I do not see any conflicts, on the contrary. Realtors should know how to keep the property values up.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
I agree with Melissa and Petunka. They're not hired in any professional capacity by your association, so there's no conflict of interest. You're fortunate that you have professionals who are willing to volunteer their time and skills to be on your ARC.

We're fortunate to have a variety of professionals in various skills in our community. The chairperson of our physical plant committee is retired and did the same job for municipalities when he was working.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By MarkM24 on 08/19/2011 2:25 PM
Our ARC has 3 members, one is a active RE agent anothers wife is active in RE and the third is a business man with no ulterior motives.

What would the ulterior motives be for the Realtor?

Providing that the Committee properly applies the guidelines, covenants and restrictions of the Association equally to each application - I don't see what the conflict would be.

Quote:
Posted By MarkM24 on 08/19/2011 2:25 PM

Can the board of directors replace these two with more mainstream people?

If the Board appointed the individuals to the Committee, the Board may remove the individuals from the committee. If the individuals were elected to the committee by the membership then only the membership may remove them.

Mark,

I get the impression that there is more to this question then what was asked. If your willing to share, the more details provided may produce better advice.

Was a request approved or disapproved that you believe was contrary to the Associations governing documents?

Tim
PamelaM5 (Florida)
Posts: 85
Posted:
My ARC has an active realtor on it and we find that her expertise comes in handy. She understands things about local codes and foreclosure procedures that the other two members don't.

I'm not exactly sure how her appointment could be a conflict of interest. She isn't profiting at all from her participation on the ARC. If anything, she's probably losing potential clients from her role as an enforcer of the rules.
MarkM24 (North Carolina)
Posts: 8
Posted:
There is more to the original question. Lets suppose a prospective client was wanting to build a home on a lot that was sold in a development by the RE gal that was on the ARC board and the house was borderline in style and size from the covenants. The other ARC board members wife is also a active RE sales gal. (they tend to stick togeather in their voting) Some consideration would be given to approving a house plan that otherwise may be voted down. It seems to be somewhat of a conflict of interest. This question relates to another post where the ARC voted to approve a house paint color(Pumpkin)after the house was already being painted without approval...The residents are in a uproar and the 2 board members voting for this approval claim the homeowner did not know about the covenants and to ask him to repaint would be a expensive proposition. The Board of directors is in a real bind as the very active secretary who hand walked the application to the homeowner and had him fill it out is also not in compliance as he has put a deck, hot tub and pagoda ON his house (attached) without a permit. He just wants to be friendly. This is one of the nicest gated communities on the Crystal Coast on the sound in NC. We just won a court case (illegal fence) that cost thousands to DEFEND. Now there are 2 more cases. The RE gals are thinking about not offending anyone and don't see anything wrong with a pumpkin house in a sea of muted grays and buffs houses. What could be their thinking in regard to property values with this ruling?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Mark,

I do see your point on how a possible conflict of interest could arise - especially if the sale was contingent on the approval.

Am I understanding you correctly that of the three ARC members two of them are from the same household?

Tim
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By MarkM24 on 08/20/2011 2:24 AM
There is more to the original question. Lets suppose a prospective client was wanting to build a home on a lot that was sold in a development by the RE gal that was on the ARC board and the house was borderline in style and size from the covenants. The other ARC board members wife is also a active RE sales gal. (they tend to stick togeather in their voting) Some consideration would be given to approving a house plan that otherwise may be voted down. It seems to be somewhat of a conflict of interest. This question relates to another post where the ARC voted to approve a house paint color(Pumpkin)after the house was already being painted without approval...The residents are in a uproar and the 2 board members voting for this approval claim the homeowner did not know about the covenants and to ask him to repaint would be a expensive proposition. The Board of directors is in a real bind as the very active secretary who hand walked the application to the homeowner and had him fill it out is also not in compliance as he has put a deck, hot tub and pagoda ON his house (attached) without a permit. He just wants to be friendly. This is one of the nicest gated communities on the Crystal Coast on the sound in NC. We just won a court case (illegal fence) that cost thousands to DEFEND. Now there are 2 more cases. The RE gals are thinking about not offending anyone and don't see anything wrong with a pumpkin house in a sea of muted grays and buffs houses. What could be their thinking in regard to property values with this ruling?

Mark,

As I believe most of the people here have posted, normally there shouldn't be any conflict of interest by having RE agents on the ARC.

However, in my opinion, your withholding of information in the OP was the equivalent of the prosecution withholding evidence from the defense in a court trial. You cannot expect to get answers that pertain to your particular situation unless you tell the whole story. Over the years I have seen threads on this forum go off in a particular direction because the OP failed to disclose important facts. As the threads went on, those facts would eventually come out and the opinions would change.

To answer your question, if the board appoints the committee members, the board can remove the present members and appoint new ones. However, in my experience, the bylaws are usually written so that the president appoints committee members. In that case, the president can remove ARC members and replace them. Can the board vote to direct the president to replace the ARC members? Probably not, because if the bylaws give that authority to the president, such a motion is in conflict with the bylaws and would be out of order.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Not a good idea to have spouses on the same board or committee.

How did that happen?
MarkM24 (North Carolina)
Posts: 8
Posted:
Fact. One member of the ARC is a licensed broker. Active in RE.
Fact. Another ARC member is a banker, whos WIFE is active in RE. She is not on the ARC board....but influences his vote I have....My wife is also a retired RE broker and there are times I ask her opinion with especially color choices...like which tie goes with this suit. I did not mean to imply the wife had a vote.
MarkM24 (North Carolina)
Posts: 8
Posted:
Because this development is 12 yrs. old we are having a difficult time finding people to run for the BOD, ARC, or for that matter any committee. I have held the position of President of the HOA since January of 2011, I inherited a messy law suit about a fence to hide garbage cans, the homeowner sued the BOD claiming the fence was in complience as there was another fence that was approved that looked much like hers, but that fence was approved by the ARC. Hers was not. She claimed that fence set a precedent. The Judge ruled in our favor and the daily penalty fees are now past $30,000 without the legal fees which she also has to pay. The date for appeal is Sept 15. We are one development in 12-15 along the sound at the NC coast. We think the judge took in concideration the Covenents for all these communities and the precedent it would set for all (the covenents were written by one law firm for all these communities.) The issue in the forum active topics contains 2 subjects from me. The facts for both are intertwined. The ARC acting without thinking this through now has jeopardized this lawsuit. The RE agent who voted for this has had her house for sale on and off for 3 yrs. This issue has divided our neighborhood with the older folks wanting the covenents upheld and the newer/younger group seeing noting wrong with the PUMPKIN/SUNFLOWER color the owner painted his house. If nothing else this is an interesting case for this web site. Mark

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