Conflicts of interest on community association boards rarely make the evening news, yet they drain reserves, sour neighbor relations, and invite lawsuits. Florida condo law demands that every director act with undivided loyalty to the owners, not to their own pocket. If your HOA is already debating whether a treasurer can approve her own landscaping company, don’t wait—schedule a strategy session with Ferrer Law Group before the first invoice arrives.
Legal Duties
Florida statutes knit three powerful strands into a safety net for owners: (1) Chapter 617’s nonprofit-corporation standards, (2) § 718.111 for condominiums, and (3) § 720.303 for HOAs. Together they establish a “duty of loyalty” that bars self-profit and a “duty of care” that demands well-documented diligence. Courts interpreting the law expel officers who ignore these rules, and insurance carriers routinely deny coverage once personal enrichment is alleged.
Core obligations directors cannot dodge:
- Undivided Loyalty
A director must abstain from any decision that benefits the director, family, or a company they control. Condominium law attorneys cite § 718.111(1)(a) to suspend voting rights and seek restitution when the rule is breached. - Informed, Reasonable Decisions
Section 617.0832 demands competitive bidding, license verification, and written price analysis before a vote; shortcuts open the door for FL condo lawyers to claim negligence. - Even-Handed Enforcement
Letting a friend slide on Florida condo noise laws while citing another owner triggers fee-shifting lawsuits under § 718.303; the plaintiffs’ lawyers for condo owners almost always recover expenses. - Seven-Year Record Preservation
Boards must archive minutes, bids, and invoices for at least seven years; missing files weaken any defense when south Florida HOA attorneys subpoena documents under Florida HOA laws. - Education Within 90 Days
§ 720.3033 requires each HOA director to complete a state-approved governance course. Failure nullifies quorum votes and hands palm beach county HOA lawyer challengers an easy victory.
Boards that honor these duties attract competitive bids, trim operating costs, and maintain predictable assessments—benefits every owner can appreciate. Neglect the checklist, and the result is personal liability, recall petitions, and fast-track arbitration before Florida’s DBPR. Engaging a seasoned condominium law attorney for a preventive audit costs less than a single month of inflated dues.
Disclosure Requirements
Statutory notice rules form the backbone of conflict policing, but prudent boards add extra ribs—stakeholder involvement, third-party vetting, and airtight paperwork—to keep grievances from ripening into lawsuits. Florida’s conflict-of-interest statute begins with a 14-day written alert: any director, or a relative holding even a one-percent stake in a proposed vendor, must circulate a plain-language disclosure to every owner at least two full weeks before the vote.
After notice, minutes transparency locks the record. The disclosure itself, the motion, and each director’s vote must appear verbatim in the minutes, certified by a neutral secretary or the community manager—never by the conflicted insider. Mandatory abstention follows. The interested director can help establish quorum, but must stay silent during debate and must not cast a vote, preserving the impartiality required by Chapter 617.
Finally, an owner inspection window opens. Within ten business days of a written request, members may review the entire conflict file, including bids, affidavits, and price comparisons. Savvy boards upload these documents to a secure portal so residents and insurers can confirm compliance without delay.
When a board marries the statutory script with these practical reinforcements, courts begin any future challenge with a presumption that the contract is valid and fairly priced. Skip even a single document, and a judge applying condo law can unwind years of invoices overnight—an avoidable fiasco that costs far more than retaining an experienced condo law attorney to review the paperwork at the outset. Document templates, checklists, and calendar reminders make compliance effortless.
Guard Your Treasury with Ferrer Law Group—Book Now
Transparent minutes, outside counsel, and conflict binders keep Weston, Broward, and Miami-Dade budgets in the black. Ferrer Law Group pairs courtroom wins with contract drafting mastery to protect communities from self-dealing and restore owner trust—contact us today for a fast, no-fee conflict audit that can save every owner far more than it costs.
