Ethical dilemma

Ross,

I first noted that your posting count is Zero, suggesting that you have withdrawn from this forum. Your state is also not shown.

Are you on the new board or were you on the old one?

Your association has been mismanaged to death. Your old board sounds like a typical BOD: they knew nothing about running an association and were unwilling to learn. It sounds like even if they were aware of some of the problems that they were afraid to raise assessments to cover costs.

The new board has few good choices. The best choice would be to grow a pair and raise assessments to cover the costs of finding out what is wrong and what it will cost to fix it. This course of action will win the board few friends but maybe a few owners will understand that since they let the old board have its way for a decade they, as much as the ex-directors, are to blame for the problems. Maybe some will also realize that if left unrepaired the value of their homes will dwindle to nothing.

As far as the president's sale, I am not sure what to advise. Some states require making a full disclosure when selling and some require none at all. If your state requires disclosure of defects, the person with the most to lose may be the realtor if they knowingly participate. Contact him or her and find out what is being disclosed and what is being hidden. Get a copy of the disclosure if possible. If you feel the disclosure is false or misleading, complain first to the broker and then to the state real estate commission.

I agree. Not your business unless you are asked.

> She stated she is not going to tell any buyers about the structural and financial condition of the HOA (she lives in the building with the structural issues)

Most states have a disclosure form that needs to be completed by the owner when listing for sale. Inaccuracies, incomplete answers, or outright lies open the owner up to a major lawsuit by a purchaser.

Agreed. In my state, it is the seller's responsibility to give the buyer full disclosure and to provide the deed restrictions. It is not the Board's responsibility UNLESS the buyer or their agent is requesting additional information.

What you have offered is exactly one of the things I mentioned on another thread about "amenities". We also have Board members who are older, retired, on a fixed income, and are not making sound financial decisions on the behalf of the community as far as maintenance and repair.

In the OP example, it is what it is and at least you do now have some power to fix the real problems. Unfortunately, nobody is going to like the ideas of special assessments and also raising the assessments to play catch up. Just be honest and bring factual, undisputable information to all owners that support what you are going to need to do at this point. Good Luck!

It's the seller's ethical problem (not dilemma), not yours, Ross. If in a full-disclosure state like Calif., let the buyer sue the seller.

Meantime, you have far more serious problems, haven't you? There's a vacancy on the board, so volunteer to fill it! Or gather others to urge someone to fill it! Offer this person your full support.

There's a lot of work ahead, which will certainly require an increase in regular assessments and a special assessment too.

While it's probably too late now-after 10 years-- someone should check to see if the developer can be held responsible for what sounds like construction defects in that building.

If you are on the Board, from the Boards standpoint, they need to make sure that this info is included in any disclosure requirements. That is the limit of the Boards responsibility (as far as the individual selling their property).

If you are not on the Board and just someone who found out these plans, you indeed to have an ethical issue. Some will say it's none of your business and, to some extent, this is correct. Some will say that you have a moral (not legal but moral) obligation to let your potential neighbor know of the issue. To that end, you have to make your own decision. If you chose to become involved, a simple letter to the listing agent would likely be all that is required.

However, there may or may not be legal ramifications (and mind you, I am not an attorney)if you do involve yourself and cost a deal to fall through.

I sorta had that troll hit too, Tim, but replied anyway for reasons that you probably can figure out.