Legal Question in Real Estate Law in Ohio

Condominiums

I just learned that our association board lost a bundle of our reserve fund in the stock market. Was it legal for them to undertake such a risky investment with our money without the consent of the residents?


Asked on 9/02/08, 7:52 pm

1 Answer from Attorneys

J. Norman Stark J. Norman Stark , Attorney, Architect

Re: Condominiums

Dear Concerned Reader: Your condominium association is governed by its Declarations and Bylaws, which must be consistent with the provisions of Section 5311 of the Revised Code of Ohio. Actions of the Board of Directors of the Association should be guided by the recommendations of its legal counsel.

If a majority of the Members of your Association wish to remove officers, for cause, i.e. their poor judgment in making a bad investment, you must first ascertain whether such action was within the Bylwas permitting them discretion to make such investment. If not, you may have an action against them and their legal counsel as well, if their decision was guided by Counsel.

The Condominium Laws of Ohio, Section 5311.08 (B)(1)(f), provides governance by recorded bylaws and for the removal of officers and directors of a unit owners association.

Consult an experienced legal counsel to guide and assist you.

Good luck.

Sincerely, J. Norman Stark

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Answered on 9/03/08, 8:40 am


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