Judicial Selection Coalition

The individuals who serve their association in an elected capacity are an absolute cross section of our society. Some men and women have had extensive company experience which can be really useful. Other people have no experience at all, which in some instances can be just as useful. I know of no real practical experience or training that will prepare anybody for being on the Board of Directors/Administration of an association. It is a totally unique organization, in that you are dealing with friends, neighbors and a group of various personalities. For the inexperienced, there are typical mistakes in administering an association. Some mistakes can be rectified through education and practical experience. Most can be solved with a lot of typical sense. The most widespread mistakes for new officers and directors are the following:

1. Not being familiar with the association documents. Numerous owners might be aware of the rules and regulations but not with the Declaration and its Bylaws. These documents set forth how your association will be governed and act as a guide.

2. Not being knowledgeable of State Statutes, as well as other state and federal laws. In many instances, if the documents do not address a specific dilemma or circumstance, then these other laws will prevail.

three. Many Board members are unaware of their personal liability although serving on the Board of Directors/Administration. Particular decisions and actions by the Board can result in litigation and the Board may be held accountable on a personal basis. Being aware of this could support some to act more judiciously. As a director, you have a fiduciary responsibility to all of the unit owners. Rely on an attorney who specializes in association law to guide you.

4. Some new Board members will selectively enforce rules while ignoring other people who could be violating the exact same or different rules. This is not only unfair but it can also bring action against Board members.

5. Several new Board members are unaware of the Property Manager’s true function. If there is a property management business, just what is its contractual responsibilities? Being unaware not only creates friction but also hinders everybody from performing their jobs efficiently. I suggest having the Board meet with their respective managers, review their job responsibilities with them and talk about the way the Board would like to interface with them or their firm.

6. Some unit owners want to be Board members for their own personal gain, or to correct some wrong they feel they received in the past. This sort of thinking can lead to trouble for all concerned.

7. Some officers and directors are unaware of their responsibilities. Actual job descriptions can clarify these duties. Obviously, the finest time to be fully aware of these duties is prior to being nominated. The Bylaws will offer these duties.

8. Some directors are unwilling to put sufficient time and effort into their positions. This is not fair to the other unit owners, or to the other directors who will have to make up the slack.

9. In some instances, there will be directors who overstep their bounds of responsibility and may be in conflict with the documents. This will disrupt the workings of the association.

10. Never conduct company and meetings in private. This is in conflict with documents and state laws.

11. Directors may be unfamiliar with existing specifications, contracts, leases and the bidding process.

12. Directors may be unfamiliar with standard insurance coverages. This one single region will produce most of the litigation against a Board, specifically if it is not correctly covered.

13. Some Board members could be unfamiliar with requirements for reserves for repair and the calculations of exact same. Also, directors who are unwilling to make tough decisions with regards to preventative maintenance expenditures, for fear of criticism.

14. Some members might be unfamiliar with standard accounting practices and procedures. Allow an individual with understanding in this region to take the responsibility for this all crucial region.

15. Boards may possibly not be ready for emergencies and the unexpected. Such things will happen and they should be thought out well beforehand.

This list is comprised of only the most frequent mistakes that seem to be repeated by new officers and directors. They are all correctable and, by way of a period of adjustment and experience, can all be conquered. Extra articles might be viewed at http://tinyurl.com/yeaaxhm