Board members units are for sale.

Started by DavidK27 • 10 replies • 1006 views

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DavidK27 (Tennessee)
Posts: 1

Posted:

I live in a 36 unit condo community. We have 3 current board members (out of 7) whose units are for sale. They are against anything that will impede the sale of their units such as a dues increase. My question is should they be allowed to vote if their units are for sale and should they even be on the board at this point. There is nothing in our by laws that addresses this. Thank you.

AugustinD
Posts: 5,144

Posted:

First, I believe legally, they are in their rights to remain on the board until they are no longer members of the HOA.

Second, a dues increase could be argued to be a good event, because it means the HOA is looking out for its infrastructure etc. Also people could say, "Well you voted for the dues increase because you are leaving and won't have to pay it!" Others could say, "You voted against the dues increase because you are leaving and want to sell your home!" I think the question becomes one of ethics. Should they vote on a dues increase? Ethically, I say no. Legally, I think they have the right to vote on this.

The law requires the directors to act in the best interests of the Association. But what "the best interests are" is often a malleable point.

KerryL1 (California)
Posts: 14,550

Posted:

Welcome to the Forum, David.

With a Board of 7, can't the other 4 outvote them? Are you on the Board? Is a dues increase necessary for your 2018 budget? How much per unit in your opinion? Would that be enough to kill a sale?

(We actually had the opposite years ago here where 3 of 7 directors wanted to flip to a new urban high rise across the street and persuaded the rest of the Board to completely redecorate our 2 towers' hallways. New carpeting & wall coverings in a 5 y.o. project!! Took 5 years for our reserves to recover from that $180k hit)

JohnC46 (South Carolina)
Posts: 14,265

Posted:

David

For sale or not, they are still HOA Members who can vote.

KerryL1 (California)
Posts: 14,550

Posted:

Ah, Augie wrote while I was and I agree with him too.

LetA (Nevada)
Posts: 2,679

Posted:

They are free and legally able to serve on the BOD up to the day they close escrow and the title is transferred to the new owner.
Then it is up to the remaining BOD to hold a special election or appoint an interim member of the board.

JohnB83 (South Carolina)
Posts: 124

Posted:

In South Carolina:

until the new deed is actually recorded

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By LetA on 09/30/2017 10:20 AM
They are free and legally able to serve on the BOD up to the day they close escrow and the title is transferred to the new owner.
Then it is up to the remaining BOD to hold a special election or appoint an interim member of the board.

Depending on the bylaws, they may be free to remain on the board after that time, it depends if directors need to be members.

Escaped former treasurer and director of a self managed association.

KerryL1 (California)
Posts: 14,550

Posted:

I'm curious, David. What else do the 3 oppose that, by their definition, would impede a sale?

GenoS (Florida)
Posts: 4,276

Posted:

He gone. Post Count: 0

KerryL1 (California)
Posts: 14,550

Posted:

Thanks, Geno--guess he didn't like our relies....

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