Condo BOD conflict of interest, breech of fiduciary duty?

Asked about 1 year ago - La Grange, IL

2 of 4 BOD members are orig developers exempt from the rental rule that applies to other unit owners. They have been buying up foreclosures and renting them out. I'm next. What can I do to stop them? BOD president agrees with me, but says he can't do anything.

Attorney answers (3)

  1. Alan James Brinkmeier

    Contributor Level 20

    Answered . Get the Board to change the exempt rule on rent. Rely therefore on the political process

  2. Joseph Andrew Brabender IV

    Pro

    Contributor Level 18

    Answered . In the vast majority of condominium disputes, the cheapest and most effective resolution is a political one. Get yourself and other like minded owners elected and change the rules/bylaws. Litigation over these matters is extremely expensive and nasty.

    I'm not sure what you mean by "I'm next." Does that mean you are going to be foreclosed on? If so, having a bidder in addition to your mortgage-holder isn't always a bad thing.

    Though we strive to provide accurate legal information in our answers on AVVO, our answer should not be construed... more
  3. Keith G Langer

    Pro

    Contributor Level 19

    Answered . Per your statement, the two "orig developers" are doing exactly what they are permitted to do - rent units. As these are foreclosures that would likely be vacant otherwise, that may not be a bad thing.

    At any rate, unless and until the BoD changes that rule, you have no cause of action.

    The foregoing is for general information purposes and does not establish an attorney-client relationship.

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