ABA Family Legal Guide

Home Ownership

Shared Ownership: Condos and Condominiums

The Board of Directors

What is the role of the board of directors?

Typically, the board has broad powers under state law. The board may raise or lower assessments and impose special assessments to cover specific repairs or improvements. It also may insist that unit owners obey the policies of the association.

Many associations grant the board of directors a right of first refusal to buy or lease a unit on behalf of the association. The way this generally works in practice is that the owner must offer to sell the unit to the board at a price that matches the good-faith price offered by an outside purchaser before agreeing to sell it to anyone else. Although this power is mostly used to keep out an undesirable purchaser, it can be used to acquire a management office or superintendent's apartment. Some cooperatives require a right of approval of any purchaser before a sale can be consummated.