Who is to blame when the board is out of hand? When buying an industrial loft or condo, your lender will want to see the books to ensure the building owners’ operations are on the up and up. The rules and resources of the community board provide the insight you can use to ensure your condo or loft purchase is going to be a good move. Look carefully at the minutes and interactions residents have with the board members. A Smart building board will hire a professional property management company to handle the day-to-day operations and budgeting of funds for repairs and operations.
A condominium, cooperative, or homeowners’ association elects a board for a specific purpose: to manage the community’s day-to-day business, oversee special projects, and draft and uphold the rules and regulations that keep life orderly and harmonious. Don’t forget these are just regular people with no special skills or experience. Once elected, they gain life and death powers, as seen in the recent Florida condo collapse tragedy. In fact, the board has an inflexible fiduciary duty to act in the community’s best interests as a whole. The question of whose best interest is being acted on leads to most of the conflicts seen in litigations and disputes among stakeholders and residence of a community-owned building.
This means that boards have an obligation to stay consistently on the side of good, advocating for residents and promoting neighborly well-being – and most boards do just this. Unfortunately, however, boards are made up of humans, and humans are wildly fallible. Having sampled even a morsel of power, some find themselves starving for more; oftentimes, other less malicious folks simply make mistakes, and rather than correct them, keep on stumbling down a wrong path. #entarlovesyou
Once the board crosses over to the dark side, it can mean serious consequences for not only its members but every owner or shareholder in the building or HOA. Infighting, backstabbing, loss of funds, declining property values, and even legal consequences may well ensue if the ship isn’t righted. Attorneys caution that it is better to be proactive rather than litigious with your board, a court case would be expensive to prosecute and yield uncertain results. #industriallofts
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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
