Q: My question is whether or not the HOA president is acting legally and ethically
Hi I have a client who wants to sell her townhouse in a community with an HOA. According to the HOA President, she has $25,000+ in dues unpaid. There is also a tax delinquency, which may send the property to auction. She hasn't lived there in almost a decade, and the community looks like a third world country. In order to get the property down to a price someone would pay, the HOA would have to forgive some of the unpaid balance. I've made contact with the President, and he made it clear that if he handles the sale and facilitates it to one of his investors, he will bend on the fees to get the property sold, BUT he will not negotiate with my client if she has an agent. He wants to control who the buyer would be. The HOA President owns three properties in the community, two of which are tax sale deeds. To me, he is treating the situation as an investment opportunity for himself. My question is, as President of the HOA, is he acting legally?
A:
Look at the bylaws first. That may answer several of your questions.
Also, there may be an issue with self-dealing and breach of fiduciary duty. This would be a corporate litigation matter if it is not addressed in the bylaws.
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