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Asad Rahman
Asad Rahman, Lawyer
Category: Real Estate Law
Satisfied Customers: 1505
Experience:  Practicing Attorney with 10 years experience
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I belong to an HOA in florida in a growing community. The builder/developer

Customer Question

I belong to an HOA in florida in a growing community. The builder/developer ( AB Bros ) is a well known national builder. At inception the developer, (AB co.) chose a community Mgt company ( DC Mgt) to manage the community via the HOA. The mgt company is a hundred miles away. The Mgt co and the developer hold 2 seats on the HOA board and the residents hold 1 seat.
In August of this year the mgt company contract is up.
1. The developer and the mgt company will use their 2 votes to rehire the same mgt co. , But isn't this a COI for the mgt company, shouldn't they be abstaining from the vote. We don't seem to be able to get rid of this mgt company.
2. With 95% or more of all homes sold in the development, shouldn't the residents have equal or majority votes for the board of the HOA?
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Asad Rahman replied 5 months ago.
Yes, the management company should not be voting on a contract for itself. That is clearly a conflict of interest. Your by-laws should address when the developer should transition off the board.
Expert:  Asad Rahman replied 5 months ago.
Let me know if you have any additional questions otherwise a positive rating would be appreciated.

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