REALTORS ON THE
BOARD OF DIRECTORS

QUESTION: Can associations restrict realtors from serving on the board?

ANSWER: There is nothing wrong with realtors serving on the board of directors. However, potential conflicts of interest arise if the realtor/director is actively listing and selling property in the community while on the board. They sometimes make decisions on the board, either intentionally or unintentionally, that skew toward their own self-interest when those decisions might affect listings/sales in the community. For example, they might push the board to plant flowers and paint the buildings when money might be better spent on plumbing repairs and a new roof.

Bylaw Amendment. So as to avoid potential conflicts, some associations limit realtors from serving on the board during the time they actively earn income in the development. This can be done by amending the bylaws. If a realtor wants to serve on the board, that realtor could voluntarily suspend his/her listing and sales activities in the community during the realtor's tenure on the board.

Updated by ADAMS KESSLER 8/22/2008