Condo associations are typically made up of volunteers who come from all walks of life. It’s no surprise that conflicts of interest can arise without the board understanding how to avoid them and the potential repercussions of not taking them seriously. Education and a good liability policy can prevent and mitigate potential condo association conflicts. Here are three things your board should look out for to prevent lawsuits or even the whiff of impropriety.
It’s natural for board members to think of family members when work comes up or the board needs a new member. Unfortunately, it’s nearly impossible to give work to a family member, even if you recuse yourself from voting. Avoid working with any board member’s family whenever possible.
Performing Paid Work for the Association
Besides family, consider your own work and keep it separate from your association duties. Whether your company does landscaping or you want to offer to underwrite its insurance, you can’t do both jobs impartially.
Placing Personal Gain Above the Good of the Owners
Whether it is smokers voting to allow smoking in public areas or one board member voting against higher maintenance fees because he’s selling his property, any time a board member puts his own gain above the good of the group, there’s a conflict of interest.
Your board should have a conflict of interest policy in place that clearly defines what it is and what needs to be done to avoid it. Board members should immediately provide full disclosure when they realize there is a potential conflict.