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Legal Memorandum: Obligations of an Association's Board of Directors

Issue: Under New Jersey law, what obligation does an association’s board of directors owe to its member homeowners?

Area of Law: Litigation & Procedure, Real Estate Law
Keywords: The association's board of directors; Fiduciary obligation; Duty to preserve and protect the common elements
Jurisdiction: New Jersey
Cited Cases: 327 N.J. Super. 544
Cited Statutes: None
Date: 02/01/2013

The law has been that:

The Association’s Board of Directors has a fiduciary obligation to its members similar to that of a corporate board to its shareholders.  That obligation includes the duty to preserve and protect the common elements and areas for the benefit of all its members.

 

Kim v. Flagship Condominium Owners Ass’n, 327 N.J. Super. 544, 550 (App. Div. 2000), cert. denied, 164 N.J. 190 (2000) (citations omitted; emphasis added); see also Thanasoulis v. Winston Towers 200 Ass’n Inc., 110 N.J. 650, 657 (1988); Ebert v. Briar Knoll Condominium Ass’n, No. A-6487-04T15932-04T1 at *6 (App. Div. Jan. 26, 2007) (same).   

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