Injury Law Group Blog

Tips for Condo Governance

Condominium and Housing Law

Quick Tips for Condo Governance

• The board should be comprised of people who understand business and finance
• The board should be overseeing the building, rather than managing
• The manager should be independent of the board and have a trusted reputation
• Ideally, the directors should own a unit in the building and actually live there
• Conflicts of interest are a red flag – For example, the board members should not have financial interest in transactions with the property manager or vendors
• The board should sign and follow a Code of Ethics

Tips for Condo Owners

• Condominium owners should read the condo’s declaration, which is similar to a condo’s constitution, in addition to the bylaws and rules
• Potential new owners should also read the developer’s disclosure statement and should have it reviewed by a lawyer
• Although most condo board meetings are closed, owners can attend annual meetings
• If an owner is unable to attend an annual meeting, a condo board could implement electronic proxy voting, where proxy documents would be emailed to owners
• If an owner is unhappy with the board, they can try joining the board, although this is a time-consuming commitment

Overall, it is important to have a strong board, and effective board governance, with unit owner involvement.  A trusted condo lawyer is especially important, as condominium processes can become very complex.  For more information, click here