Trustee Sold Condo to Family Member

Started by EricW6 • 9 replies • 422 views

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EricW6 (Massachusetts)
Posts: 3

Posted:

I have a trustee that sold his condo to a family member for tax purposes. He then provided a Power of Attorney document to continue to make decisions on the condo. When he sold his unit does he automatically lose his position as the on the Board of Trustees as the treasurer? I would assume he loses his position and needs to be voted in again by all unit owners. Am I correct?

SheliaH (Indiana)
Posts: 6,964

Posted:

Read your documents for the answer. If your documents say board members (or trustees) have to be unit owners and he sold his unit, you have your answer. You might also want to check the deed to see who's now listed as owner - which you can probably do by contacting the agency that maintains that information.

If you're correct, you'll have to speak truth to power and confront the board with this information and then see what happens. This may end up with a special homeowner's meeting to decide the fate of that homeowner, and you may need to be the one to rally your neighbors together to pull it off. Buckle up - you're in for an interesting ride, and good luck.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

CathyA3 (Ohio)
Posts: 6,299

Posted:

Yes, most condo associations require that directors be homeowners of the association. If this is true for your association, Mr. Former Owner resigned from the board the day his condo sale closed.

Even if that were not the case, I doubt that this would work. Board positions are not "hereditary" or owned by the board member. He would have no authority to transfer decision-making power, as this power doesn't belong to him. It belongs to homeowners who elect people to serve on the board.

As Sheila said, time to push back.

AugustinD
Posts: 5,144

Posted:

Ditto what SheliaH and CathyA3 posted.

Power-of-attorney, for a person who is a condo Owner, does not translate to being qualified to run for or be appointed to the board. That this guy thinks his Power-of-Attorney does translate thusly is a gross misconception.

BillH10 (Texas)
Posts: 1,217

Posted:

Eric

The answer to your question depends on the language in your documents.

The position of Treasurer in some association documents is an officer but not necessarily that of an elected director. Those association documents may also state the Treasurer does not have to be a member of the association or an owner in the association. This language exists to allow a Board to engage a non-elected person who may be a financial professional (CPA, etc.) as the Treasurer.

I respectfully agree with the responses which were previously posted, the individual probably lost his seat upon execution of the documents of sale at closing. However, you should read the documents of your association to determine the exact requirements to be a member of the Board of Trustees.

There are also scenarios in which a non-owner designated representative of a business entity (such as a corporation) owner may hold office on an association board. Others on this forum understand this far better than I, if this is the case you should consider consulting the association attorney regarding eligibility to serve.

EricW6 (Massachusetts)
Posts: 3

Posted:

Thank you all for the support and replies.

EricW6 (Massachusetts)
Posts: 3

Posted:

Thank you all for the support and replies.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By AugustinD on 01/06/2021 6:46 AM
Ditto what SheliaH and CathyA3 posted.

Power-of-attorney, for a person who is a condo Owner, does not translate to being qualified to run for or be appointed to the board. That this guy thinks his Power-of-Attorney does translate thusly is a gross misconception.

That's exactly my understanding. A POA grants the holder the ability to make decisions on behalf of the giver. Serving as a Director on the Board isn't included.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By GenoS on 01/06/2021 1:48 PM

That's exactly my understanding. A POA grants the holder the ability to make decisions on behalf of the giver. Serving as a Director on the Board isn't included.

This is my belief also.

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