MLM Directory

HOA Board Membership Ethics in California?

In California, can an HOA condominium board member, that is also a non-owner occupied owner leasing their unit, market and broker sales and lease properties as an agent for other owners in the community? Basically, we have a Real Estate Broker that purchased a property within our association for the opportunity to market property for personal gain. He does not live within the community but has been recently placed as President of our HOA Board, against many oppositions, and is causing a lot of problems with some owners that he believes to interfere with his business of selling and leasing other condos within our association. Can a non-resident association member become a board member? Can a real estate broker that has been appointed as president use his position to encourage sales and leases for his personal gain? This individual now posts signs in many rental units as well as condos for sale that should not be posted in the windows and stating he is the community specialist and representing himself as the HOA President in addition to being the property manager and sales agent. I see this as a conflict of interest being on an HOA board that is supposedly non-profit, a non-resident and marketing real estate utilizing his membership for personal gain. Any information will be helpful as a few other owners are looking into this matter and some tenants are being harrassed as well. In addition, a neighbor that is a renter, was recently required to write out post-dated checks for 12 months in advance before being allowed to move into a unit represented by this same person/broker/HOA board member/president. Is it legal for a real estate broker to require and retain 12 months of post-dated checks in advance? I thought this was illegal. Thank you for all answers in advance.

Public Comments

1. He's the board president, AND the property manager? Being a non resident is usually irrelevant. You need to read your bylaws. What is allowed is spelled out there. You do't like it, vote him out.
2. All of this is legal. Maybe agaisnt your bylaws, which you should read, but legal by state real estate law.
3. a) Yes, writing post-dated checks is illegal. b) He obviously won the majority of the votes. c) Join the board. d) If your bylaws say that you can't post signs, then you can't post signs. It's as simple as that. The president doesn't get to avoid following the rules. e) If his unit costs the same as your unit then he has just as much invested in the community as you. The fact that he doesn't live there is irrelevant. But, how he won the job of president when he doesn't live there is bizarre. I could see serving on the board, but that's like being the Governor of Maryland and living in Florida.