Condo Association Management Blog

I don't know, but I do know that on one board is a governor who is also a realtor and who is known for selling many units in the development that she has inside knowledge about. I was also wondering if the association should/could get part of her commission.

There was a posting on this site not too long ago regarding a Realtor or a Real Estate broker being on the Board and was this a Conflict of Interest. I said that I felt it was a Conflict of Interest. And this Question shows why. So the question is this, is it proper for a Director on an Associations Board to benefit while on the B.O.D.??? By being on the Board - they have inside information that directly benefits them financially and gives them a selling edge over other realtors. I say it does not seem appropriate.

There is no GOOD reason why any membber of the Condo association should/would be entitled to any monies generated by owner/seller ! 
 
NO WAY !!!

Indeed , if they were a realtor or agent that had some participation with the selling is a different story. 
 
Then, commission, etc. would/could be in order.

In Texas, it is illegal for receive to provide commission to unlicensed people which I would believe would include Associations. However, there are methods for Realtors to provide rebates to clients as long as it is all properly disclosed. You should check with your local real estate commission to see if this practice of rebates is allowed or what can be done for your Association.

In Texas, it is illegal for receive to provide commission to unlicensed people which I would believe would include Associations. However, there are methods for Realtors to provide rebates to clients as long as it is all properly disclosed. You should check with your local real estate commission to see if this practice of rebates is allowed or what can be done for your Association.

I have never heard of an association receiving a percentage of a realtor’s commission and agree with the other responses that, at least in Utah, kick backs are illegal. If the association is receiving the kick back because they are advocating using a specific realtor whether on the board or not then maybe this should be looked into. As I’ve stated in another post, having a realtor on the board who also lists condos for sale in the development can be an advantage to the seller because the realtor does have specific knowledge about the development and can and should provide full disclosure. I’m a realtor and an officer of the association and the members take full advantage of my expertise. There is no conflict of interest and all transactions are legal and at arm’s length. The association does require a transfer/administrative fee of one half of one percent of the sales price of a unit.

I suspect "Transfer fees" may be what you are actually referring to. This has become a common way for HOA's to raise money rather than hitting owners with assessments. It may be that the agent was not aware of the transfer fee requirement or the title or escrow company did not handle or account for the fee entirely correctly, so it looked like something else when the money changed hands. Any "kickbacks" to unlicensed entities would be illegal in most states.  
 
 
 

In FL it is a 3rd degree felony punishable by up to $10,000 & a 5 yr sentence to practice ANY sort of RE without being Licensed.  
That includes sharing Amy commissions etc to anyonewho is UN Licensed, ANY kickbacks, referrals, commingling or fraud is also Illegal. So to anw your question.  
 
No , they can NOT do this under Florida Laws in ANYWAY, shape or form.  
UNLESS it was done through ANOTHER LIC RE & that would as above stated be beyond unethical practice & completely Illegal if anyone other than the brokers or Owners are receiving ANY TYPE OF "Compensation" at all... Even a bottle of wine!