QUESTION: Can associations restrict Realtors from serving on the board? We had a board president who was a real estate agent who fought to keep dues low so sales would be easier. As a result, the HOA was under-funded for the four years he was president and subsequent boards were forced to make major dues increases to catch up.

ANSWER: A "Realtor" on the board does not automatically create a conflict of interest. Real estate professional can offer great insight into many aspects of the of the development. Conflicts arise when realtor/directors are actively listing and selling property in their associations. They sometimes exert pressure to shift limited funds away from needed repairs to discretionary cosmetics. For example, they might push the board to plant flowers and paint buildings when money should be spent on plumbing repairs and a new roof. Low dues and pretty flowers make it easier for realtor/directors to sell units and earn commissions. This is in the director's best interest but not the association's best interest.

Bylaw Amendment. So as to avoid potential conflicts, some associations limit real estate agents/brokers from serving on the board during the time they actively earn income in the development. This can be done by amending the bylaws

ASSISTANCE: For assistance amending your documents, contact us for a quote.