Real Estate Law

Have real estate law questions? Ask a real estate lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Can the treasury of our homeowners association invest some…

Customer Question
Can the treasury of...

Can the treasury of our homeowners association invest some of the money that the association has in CD'S or any other type of investment?

Lawyer's Assistant: Where is the property located?

St. Mary's County in Maryland

Lawyer's Assistant: Has any paperwork been filed?

The treasurer has not provided the new board members any information, he just says that there are at least two CD's and other accounts for the HOA.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Is it lawful for him to withhold any information regarding the finances of the HOA?

Submitted: 7 months ago.Category: Real Estate Law
Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 6 minutes by:
11/14/2017
Real Estate Lawyer: socrateaser, Lawyer replied 7 months ago
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,982
Experience: Attorney and Real Estate broker -- Retired
Verified

Hello,

The treasurer of a homeowners association is responsible for the management of association funds. The treasurer must adhere to what is known in the law as the "prudent person" investment standard. If he/she does this, then he/she is not liable for breach of fiduciary in the management of the funds.

The prudent person standard requires that investments must be made in the most careful and diligent manner. Bank CDs are some of the safest (albeit, lowest return) investments. No court would likely find a breach of fiduciary for investment in bank CDs. Investment in stocks or "junk bonds", however, could easily violate the prudent person standard, and it would be necessary to obtain a favorable vote from the association board before making such an investment. Otherwise, the treasurer could be found in breach of fiduciary.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

Thanks again for using Justanswer!

Ask Your Own Real Estate Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a real estate lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,982
39,982 Satisfied Customers
Experience: Attorney and Real Estate broker -- Retired

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

5,436 satisfied customers

17 years of legal experience including real estate law.

Barrister

Barrister

Lawyer

11,126 satisfied customers

17 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

7,785 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

7,559 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,207 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,925 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

< Previous | Next >

Related Real Estate Law Questions
When do homeowner association covenants expire? Our bylaws
When do homeowner association covenants expire? Our bylaws were written in 1976.… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
By what procedures can a homeowners association in Texas dissolve
By what procedures can a homeowners association in Texas dissolve itself?… read more
Ray
Ray
Lawyer
Doctoral Degree
7,559 satisfied customers
Can my Home Owners Association prevent me from renting my home.
Can my Home Owners Association prevent me from renting my home. I have submitted a Hardship Leasing Permit which they denied. In this market that seems ridiculous. What are my options?… read more
Dave Kennett
Dave Kennett
Doctoral Degree
25,741 satisfied customers
My HOA has sent an invoice for each homeowner to pay 1000
My HOA has sent an invoice for each homeowner to pay 1000 dollars for asphalt. There is one person on the board who is the treasure and his assistant that made this decision with no notification to th… read more
Thelawman2
Thelawman2
Doctoral Degree
1,420 satisfied customers
I understand a homeowners association must maintain the
I understand a homeowners association must maintain the property as it was at the time sales to the public began. They board cannot remove or fail to maintain the association property. If we bought wi… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
12,083 satisfied customers
I have a homeowner's association question. Our homeowner's
Our homeowner's association is still developer owned - there are no residents on the board. The association has been turned into a "club membership" and amenities have now been opened up to the general public. The developer is being sued by mother, and amenities are now under lien due to this loss in court. I do not want to continue to pay dues as I believe the funds are being mishandled - so need to know if I can do that. … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Can a HOA initiate foreclosure if a homeowner refuses to pay
Can a HOA initiate foreclosure if a homeowner refuses to pay a fine or his annual dues. … read more
Jessica B
Jessica B
Juris Doctor
1,283 satisfied customers
DO an HOA have the right to have homeowners paint the
DO an HOA have the right to have homeowners paint the exterior of their home just due to fading of paint … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,863 satisfied customers
Is it illegal for a condominium association HOA (or counsel
Is it illegal for a condominium association HOA (or counsel hired by the HOA) to threaten to a homeowner's mortgage bank to foreclose on that homeowner's condo in pursuit of an assessment charged by t… read more
Attyadvisor
Attyadvisor
Doctoral Degree
8,041 satisfied customers
My question is in regards to homeowners associations for a
My question is in regards ***** ***** associations for a maintenance provided community. There are by-laws and covenants and then there are rules and regulations. In the community in which I live, the… read more
Attyadvisor
Attyadvisor
Doctoral Degree
8,041 satisfied customers
If a new development Homeowners association was established
If a new development Homeowners association was established with restriction prohibiting open RV, or boat storage (no driveways, and street view), can the association following the CC&R amendment prov… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
4,165 satisfied customers
Can a homeowners association deny a homeowner's application
Can a homeowners association deny a homeowner's application to plant trees within his property borders because it has a drainage easement where the trees will be planted? … read more
Barrister
Barrister
Lawyer
Doctoral Degree
11,126 satisfied customers
Does the Minnesota Open Meeting Law apply to Board of Directors
Does the Minnesota "Open Meeting Law" apply to Board of Directors of a Minnesota Homeowners Association?… read more
JBaxLaw
JBaxLaw
Attorney
Doctoral Degree
8,080 satisfied customers
How can I find out if our HOA is registered with the "SC Consumer
How can I find out if our HOA is registered with the "SC Consumer Affairs Department" and if they have submitted a buget & annual financial report in the past? What is the dead line for this report fo… read more
Irwin Law
Irwin Law
Juris Doctor JD
7,170 satisfied customers
In Washington State, is a homeowners association required to
In Washington State, is a homeowners association required to have a board of directors? No information with respect to electing the board, term of board members, etc. is included in the CCRs or newly … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,935 satisfied customers
What is the law in Colorado regarding radon mitigation in a
What is the law in Colorado regarding radon mitigation in a condo rather than a single family dwelling?… read more
Jonathan Leventhal
Jonathan Leventhal
Attorney at Law
Doctoral Degree
248 satisfied customers
I must develop a proxy ballot for my HOAs upcoming Annual
I must develop a proxy ballot for my HOA's upcoming Annual Meeting. Requirements are: proxy must clearly identify the owner and his/her address within the development; proxy must have a notary public … read more
Ely
Ely
Counselor at Law
Juris Doctor
4,925 satisfied customers
My HOA, Danbury Station Homeowners Association, is refusing
My HOA, Danbury Station Homeowners Association, is refusing to provide snow removal in the midst of one of the worst snow storms in the Washington DC metro area. Snow removal one of the few services t… read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
7,785 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x