When board members find themselves faced with a conflict of interest, it can derail an entire association – that’s why it’s so important for board members to nip these types of problems in the bud before trouble begins.
From time to time you may hear that the board of the association operates in a fiduciary capacity for the homeowners. Or you may read about the board’s fiduciary responsibility in the governing documents. Just exactly what does this mean?
Fiduciary duty simply means the board has an ethical and legal obligation to make decisions in the best interests of the entire association. That’s a small explanation for a very big responsibility.
- Stay engaged. Avoid Side Conversations and other distractions
- Listen with an open mind. Try to understand others' perspectives
- Consider two or more alternatives simultaneously
- Don't debate-discuss
- Separate facts and opinions: Discuss the facts. Vote your opinion
- Address interests, not positions.
- Move the deliberations forward. Don't repeat what has already been said.
- Judge ideas, not people. Phrase feedback constructively.
- Identify options on which the...
If you are thinking of buying a property in the US, one term that you would repeatedly come across is the Home Owners Association Rules or HOA rules. HOA rules are development specific and define the rules applicable for all the residents of that development. Each and every development in the US would have HOA rules framed by the HOA. Studying and understanding these rules is of great relevance and significance when one is considering buying a property in the development. An HOA gets formed immediately upon the birth of a new development. As more and more members start living in the development, the HOA feels the need to define an acceptable code of responsibility and behaviour amongst all its members. This is what the HOA defines for all its members. The objective of these rules is to help all the residents enjoy their stay in the development without infringing the privacy and space of the others. These rules would list down what the members of the development are allowed to do. At the same time HOA rules would also contain a list of everything that is prohibited in the development.