Titusville, FL asked in Real Estate Law for Florida

Q: can a board member appoint his wife's management company to be the new management for the Condo association?

the management company was recently changed to omit the husband's name from the company, but he is the management company's president.

does this become a conflict of interest?

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2 Lawyer Answers

A: One board member cannot do anything alone. It takes a majority of the board of directors to make business decisions. The association has to disclose the financial interest of any board member, officer or relative in compliance with the procedures set forth in Fla. Stat. 728.3027. If there is an objection to the contract it then has to be put to a membership vote.

Jane Kim
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Answered
  • Naples, FL
  • Licensed in Florida

A: Yes, it is a classic conflict of interest example and must be disclosed to the membership following formal disclosure procedures.

I do not know if you are in a condo association (718) or homeowners (720), but both have similar provisions.

Here is an excerpt from a statue governing condos:

Approval of the contract [with a conflict of interest] or other transaction requires an affirmative vote of two-thirds of all other directors present. At the next regular or special meeting of the members, the existence of the contract or other transaction shall be disclosed to the members. Upon motion of any member, the contract or transaction shall be brought up for a vote and may be canceled by a majority vote of the members present.

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0718/Sections/0718.3027.html

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