September 8th, 2023 11:58 AM by Linda Holley
A breach of a fiduciary duty occurs when a Homeowners Association or Condominium Association Board of Directors acts against the best interest of the owners. Examples include:
- Making unsuitable or excessive investments; ignoring or disobeying owners' instructions; failing to disclose conflicts of interest or relevant facts; self-dealing or taking advantage of their position for personal gain. (MBK Chapman law firm, Tampa, Florida)
Choosing a family-related vendor or voting on issues with a bias are breaches of fiduciary duties. A Board that influences owners' voting to keep assessments low for their own personal gain is breaching a fiduciary duty.
While it's true that Boards of Directors are volunteers, they still have a duty to uphold Chapters 718, 719, and 720 of the Florida statute and the association's governing documents.
Call Linda Holley, Realtor, GRI, SRES, CIPS, Fine Properties, Sarasota, Florida, for your real estate needs in Sarasota County, Florida.
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Failure to Disclose - A Double-Edged Sword by Linda Holley - may be purchased on Amazon, and will soon be available to Realtors at a discounted price from the National Association of Realtors. The Realtor Code of Ethics is discussed in this book.
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