Our Condo is managed by the management division of a larger real estate development company who converted our property from a multi-family rental property to a Condominium. We recently discovered that the management company has been transferring reserve funds from an account in the name of the condo association to what they call a trust account in the name of the real estate company they own. They claim that they can get us a higher rate of return due to the considerably higher total balance of this trust account. The interest they say is attributed to our portion of the return is reflected in our books. QUESTION. Is it legal for them to transfer funds from an account in the name of the association to an account in the name of The real estate company that co-mingles our money with other monies from their other interests?
