Conflict our not?

Started by MichelleC8 • 3 replies • 1079 views

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MichelleC8 (California)
Posts: 80

Posted:

It has been brought to the attention of HOA that one or board members is selling their unit. That isn't the issue but the fact of the matter is that the owner listed the unit for sale and the rumor going around is that its pre foreclosure. That is also just being pushed around. None the less, that is what I was told and what is being shared.

The issue is the Davis Sterling is clear that board members should not be able to serve if there is a conflict of interests or a private interests to be had regarding decisions for the HOA. There has been a inquiry to ask them to step down...

I am reading DSL and there is a lot of verbiage about not being self serving etc... Can one be selling their property, making and voting on huge repairs that we are facing such ad new floorings, roofs and things that are going to be reportedly needing a special assessment.

Is it appropriate to ask for a resignation? I am confused.

GenoS (Florida)
Posts: 4,276

Posted:

Owners can sell when they want for any reason. Unless the HOA is a party to the mortgage being foreclosed on, what business is it of yours as long as the assessment obligations of the owners are being paid? When the owners lose title to the property they will no longer be members of the association (most likely). Until then they are entitled to all the privileges and responsible for all the obligations that every other owner has. That probably includes being eligible to serve as a director. The fact that an owner is being foreclosed on is really irrelevant.

I'm not in CA and not subject to Davis-Stirling but I just don't see a conflict of interest anywhere in the scenario you've presented. Maybe there's more to it than what you've shared.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By GenoS on 08/24/2017 1:30 AM
Owners can sell when they want for any reason. Unless the HOA is a party to the mortgage being foreclosed on, what business is it of yours as long as the assessment obligations of the owners are being paid? When the owners lose title to the property they will no longer be members of the association (most likely). Until then they are entitled to all the privileges and responsible for all the obligations that every other owner has. That probably includes being eligible to serve as a director. The fact that an owner is being foreclosed on is really irrelevant.

I'm not in CA and not subject to Davis-Stirling but I just don't see a conflict of interest anywhere in the scenario you've presented. Maybe there's more to it than what you've shared.

I agree. They are an owner until they are not.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By JohnC46 on 08/24/2017 5:34 AM

I agree. They are an owner until they are not.

I also agree. In my last HOA even though I had my property for sale when transitioning from developer I had many owners ask me to put my name in the hat to run for the new BOD. I myself made the decision to not run, because I wanted the HOA to not have to fill the position in a short time frame and instead focus on other issues with the transition. However, I could have held any position and which would have been valid until I no longer owned the property. As Geno noted ... any owner who owns the property can serve.

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