An Overview of the Board’s Fiduciary Duty
First and foremost, it is important to understand a board of directors owes a fiduciary duty to the individual members that make a condo association or homeowners’ association (HOA). As explained by the Illinois Department of Financial and Professional Regulation (IDFPR), a fiduciary duty can be simply defined as a board’s responsibility to “consider budget matters in a businesslike manner and perform due diligence.” In doing this, it is the responsibility of the board to make good decisions for the community as a collective entity. If financial losses are suffered as a result of a breach of fiduciary duty, there could be legal action against the association.
Important Tips for Collecting and Protecting Association Assets
Collecting assessments and safeguarding assets can be complicated — especially in the modern world where condo boards and HOA boards are increasingly required to manage a wide range of different tasks. Here are five tips for safeguarding the assets of a community association:
Consult with Our Chicago, IL Condo/HOA Lawyers Today
At Keough & Moody, P.C., we are committed to providing comprehensive legal services to condominium associations and homeowners’ associations. If you have questions or concerns about finances and collection, our legal team can help. To schedule a strictly confidential consultation, please contact us today. With offices in Naperville, Chicago, and Tinley Park we serve communities in Cook County, DuPage County, Will County, and throughout Northern Illinois.
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