COOPERATOREVENTS NEW JERSEY EXPO. JUNE 8TH . MEADOWLANDS EXPO CENTER. REGISTER NOW!

Q&A: Board Limits

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

Real Estate, Cryptocurrency, & Taxes

Can You Buy a Co-op With Crypto?

The Year in (P)Review

Multifamily Trends in 2021—and Predictions for 2022

Kislak Transacts $30M of Residential Real Estate in NJ

Properties in Rahway & Bayonne Change Hands

NYC Metro Has 3rd Lowest Minority Homeownership Rate in US

New Mexico, Hawaii Top List

DOJ and National Assoc. of Realtors Settlement a Victory for Brokers

...But Won't Significantly Impact Market Competition

Due Diligence for Co-op & Condo Buyers

Caveat Emptor - Buyer Beware