Legal Question in Real Estate Law in California

Unlawful use of condo funds

Our Condo association president is taking money from the association funds with the help from the management company for tasks she performs associated with running things.

She submits a bill and they pay it, over $3500 so far this year. It states clearly in our CC&R's that officers may not receive any compensation other than reimbursement for supplies. The management company and their lawyer have rebuked my objections saying that she is performing maintenance and they are going to buy her a workmen's comp policy with our funds. This whole thing really stinks as she can do whatever she wants. Is there any way to stop this? I am V.P. and cannot get anyone to react to this problem. Can I sue in small claims for return of these funds or should the owners file a lawsuit ? Any ideas appreciated.


Asked on 5/28/02, 4:02 pm

1 Answer from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Unlawful use of condo funds

As a vice-president, you have a right to review the records at any time and can prove that she is taking compensation for her services. You would not be allowed to file a small claims court action since your action is one of declaratory relief and damages and may affect the entire association. I suggest you retain an attorney to write the association's attorney to demand an accounting and demand further injunctive relief. I will provide you with free consultation if you contact me.

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Answered on 5/30/02, 9:27 am


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