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Posts Tagged ‘hoa board’

I was recently doing my usual door-to-door through a neighborhood with fairly strict covenants. I came up to two neighbors, said hello and introducted myself, and they replied very sternly: “You don’t live here, do you?” A bit taken off guard, I tentatively replied, “No.” She said, “Good! There are these Realtors on the HOA board and I think it is a conflict of interest. What do you think?”

Well, I personally live in a neighborhood with no covenants – on purpose. So I am a little biased. But nevertheless, I have come across instances where real estate agents put themselves onto HOA boards to server their own agendas.

And I guess that is my point: obviously, someone has to be on the board, and in a perfect world, the community rotates its members through so that everyone contributes, and the more people that serve the more the community is represented.

However, in past experiences I have seen both Realtors and non-Realtors get elected to a HOA board to serve their own personal agenda. So I am not going to lay blame into my fellow Realtors exclusively.

To my knowledge, their is not a specific, legal reason why real estate brokers shouldn’t/can’t serve on their own HOA boards. However, when disputes arise, it seems to me that the Realtor is now caught between two fiduciary duties – the HOA and clients (if they don’t sell homes in the neighborhood than this is a non-issue).

What I have seen is real estate agents get on HOA boards to a) get business; b) push their own agendas and opinions. The result is that members of the community get upset and a backlash ensues. I have seen this on more than one occassion, and in more than one state!

So, who am I to say what is right or wrong, it is definitely a personal opinion, however, you’ll never see me on an HOA board!

p.s. It doesn’t mean I wouldn’t support and assist in my community – it just means I think it is a potential conflict of interest and I can better serve in other ways.

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