Real Estate & Property Law

What Recourse for Denial of Records, Abuse of Power in an HOA?

When a board member, former board member, or owner asks to see HOA or Condo Association records, they get all kinds of answers from their boards and managers. Here's one:

"A new board member told me recently I have no right to ask to see the financials because I am no longer a board member and have no right to see them. I asked him if he would stay with his bank if they told him same?"

Aside from the kind of snide bank reference, owners have a right to see many of the association financial records, including a considerable amount of detail. The rights are found in Civil Code Section 1365.2 which is accessible through my website on the mainpage through the Davis Stirling Act link. There is also a very comprehensive Primer available in the webstore on my site for $25 that explains these rights and spells out the ramifications for failure to allow review of records that are allowed.

Now, I can see that the records issue is not the only complaint of this owner, which is all too commonly true, so read on:

"The other new member, besides parking all his cars out, determines the Rules to his liking, which is very arguable. Most people would be disgusted and walk away thinking there is no recourse. I am a legal secretary and know I need to ask the expert, you, for a proper course to reduce abuse of power."

As I have said many times, information is power. If you want to know what a board is supposed to do, there are two Board Basics Primers (I and II) available in the webstore that discuss duties, obligations and fiduciary duty, and ramifications of the failure to fulfill it.

Boards should be fair, evenhanded, and willing to learn what the board responsibilities are. Maybe you want to purchase the Board Basics Primers as a "gift" for your board??

Full post as published by California Condo & HOA Law on December 27, 2010 (boomark / email).