Board Member Sells Home

Started by SandiP3 • 7 replies • 1847 views

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SandiP3 (California)
Posts: 3

Posted:

We currently have a board member who is selling Home A and purchasing Home B in the same association. The question is: When the member sells Home A do all rights, including eligibility as a board member, end as soon as the home sells, regardless of when Home B is purchased?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Homeowner equals HOA member.

Former HOA President

JohnB26 (South Carolina)
Posts: 1,001

Posted:

if there is a gap in ownership (home a sells on monday, home b is purchased on friday)eligibility ends

if the gap is due to closings held on the same day I would 'forgive' said gap

the exact wording is: Membership is appurtenant to and may not be separated from ownership.

TimB4 (Tennessee)
Posts: 21,059

Posted:

It depends.

If there are no qualifications to serve on the Board, then the individual is still a Director until they resign or they reach the end of their term.

If there is a qualification that an individual must also be a member in order to serve, then once the property sells, if the do not own another property, they are ineligible to serve and it will be up to the Board to remove them based on that ineligibility.

Please note, many people believe that you must be a member in order to serve on the Board. The reality is that most governing documents do not have that qualification in them. Therefore, read your governing documents to see if a qualifier does or does not exist in order to serve as a Director of your Association.

DouglasK1 (Florida)
Posts: 2,046

Posted:

If the rest of the board wants that member, then it hardly matters. The member could resign, then when the home B is closed, the board can appoint the member to fill the vacancy.

Escaped former treasurer and director of a self managed association.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Depending on restrictions in CC&Rs and attitudes of other board members:

Seller/Buyer could continue in role as Officer.
Seller/Buyer could sit in as a guest on board meetings just like a PM would.

IMO, the least disruption the better if things are going well now.

Sikubali jukumu. Read all posts at your own risk.

KerryL1 (California)
Posts: 14,550

Posted:

I agree with the others. Let him stay. And let him be a non-voting guest at your Board meeting(s).

If, of course, you want to get rid of him all together, you probably have grounds when he's a non-owner. But would stirring up that ind of pot be a good thing for your HOA?

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By SandiP3 on 09/26/2014 1:39 PM
We currently have a board member who is selling Home A and purchasing Home B in the same association. The question is: When the member sells Home A do all rights, including eligibility as a board member, end as soon as the home sells, regardless of when Home B is purchased?

Unless Home "B" doesn't close, I wouldn't bother with worrying over this and proceed with business as usual.

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