Q&A: Board Limits

Conflict of Interest text written on blackboard with chalk. Concept for mediation, resolving conflict, dispute.

Q. We have a member of the board of trustees of our co-op village who is a licensed realtor. Is he legally restricted from listing or selling units that are owned by the village, due to a conflict of interest? Also, is a board legally restricted from nepotism? Our board has hired the sister of one of the trustees as an office worker.

                                               —Suspicious

A. “Co-ops are governed by a proprietary lease and bylaws,” says Princeton-based attorney Elysa Bergenfeld, partner in the Community Association Practice Group of New Jersey law firm Ansell Grimm & Aaron PC. “Unless there are restrictions in either, such is likely not prohibited. Generally, a co-op can also hire a relative of a board member so long as the relationship has been disclosed and the hiring of the position/person was done properly otherwise.” 

Related Articles

Check mark icons. Green tick and red cross. Round checkmarks icons. True and false, correct, right and wrong, done, complete concepts. Flat design and thin line design. Vector icons set

The Extent—and Limits—of Board Powers

Can They Do That?

Senior black couple sitting with a computer and calculator, considering different housing options, Vector illustration, no transparencies, EPS 8

Downsize....or Rightsize?

It's Not Always About Square Footage

Red wooden cube with the up arrow among the cubes with down arrows.

Q&A: Conflict of Interest

Q&A: Conflict of Interest

NY-NJ Metro Area 12th Highest in the Nation for Property Taxes

NY-NJ Metro Area 12th Highest in the Nation for Property Taxes

Short Supply + High Values = Tough Going for Homebuyers

hard to buy a house. rising property, real estate market

The Growing Housing Crisis

'No Easy Answers,' Says NHC Head

Study Finds NY Metro Mortgage Payments Up 60%

Study Finds NY Metro Mortgage Payments Up 60%

Rising Interest Rates Hit Homeowners Hard