Legal Question in Real Estate Law in California
A Land Lease Purchase Dilemma
Our condominium association has three distinct phases, 3 boards, etc. A member of one board has appointed himself to do all negotiations for all three phases, no vote, nothing. The owners are complying evidently. We want it to stop. What are his legal liabilities for jeopardizing the sale to 240 people. He is not a lawyer.
1 Answer from Attorneys
Re: A Land Lease Purchase Dilemma
Your question is puzzling to me. It seems to introduce several facts or contexts without connecting them sufficiently for me to understand what is going on.
For example, what do you mean by "three distinct phases?" Do you mean the condominium project has been built at three different times, each with its own agreements? This would probably call for three separate boards.
What do you mean, "the owners are complying...." Do you mean the owners of all three phases are giving their implied consent to this person's supposed authority?
And, exactly what did this individual do to "appoint himself?" I could appoint myself prime minister of Iraq, but that wouldn't get me anywhere in any negotiation, maybe only a one-way ticket to the nuthouse.
Finally, what is being sold to 240 people? What role does this self-appointed negotiator play?
If there were more facts to deal with, I might be able to conclude that this person's actions implicate the law of agency. Looks kinda like he is acting as an agent. Probably with less actual authority than he presents himself to possess.
The law of agency is not extremely complex, but reciting all the possibly applicable principles would take up too much space here. A couple of basic principles are that an agent can bind the principal in excess of the authority given him, so that the third party the agent has dealt with has rights against the principal; but, if the agent has in so d\acting betrayed the trust of the principal, he is liable to the principal.
All this says maybe the people the "agent" is negotiating with should be advised of the agent's powers and authority, or lack thereof. Also, maybe the agent should be warned that he may be liable to the condo association, or one or two of them, if he makes deals he wasn't empowered to make.