The Truth About Condo Board Liability: What Every Volunteer Needs to Know

Ever thought about joining your condo board but

hesitated because you’re worried about getting sued? You’re not alone. Many residents shy away from board positions due to liability concerns. But here’s the truth: the risks might be far less than you think. In fact, condo directors can serve without fear of legal trouble as long as they follow a few key guidelines.

Let’s dive into what liability really means for condo board members and how you can serve without worry.

The Truth About Condo Board Liability: What Every Volunteer Needs to Know

Why Condo Directors Are More Protected Than You Think

One of the biggest reasons residents hesitate to volunteer for their condo board is the fear of personal liability. Board members are responsible for overseeing everything from the building’s finances to maintenance and legal matters. So, what happens if something goes wrong? Will board members be held personally accountable?

According to Deborah A. Howden, a condo lawyer at Shibley Righton LLP, the risks of liability are minimal—as long as board members act in good faith and exercise reasonable care. Section 37 of the Condominium Act even offers legal protections for directors who make decisions responsibly. In simple terms: as long as you’re doing your best and acting with care, you're largely protected from personal liability.

How to Minimize Risk as a Condo Director

While liability is low, it’s still important to stay vigilant. So, how can condo directors minimize the risk of legal trouble? The key is to rely on professionals. Condo board members don’t need to be experts in every field, from engineering to law to accounting. What matters is exercising good judgment and seeking professional advice when needed.

Here are a few tips for staying out of hot water:

• Rely on professionals: There are plenty of experts, including lawyers, property managers, engineers, and auditors, who can help board members navigate complex decisions.

• Document decisions: Keep a record of meetings and decisions made by the board. This helps demonstrate that decisions were made thoughtfully and responsibly.

• Don’t be afraid to ask for help: If something’s outside your area of expertise, don’t hesitate to consult an expert. Board members aren’t expected to know it all.

  
  

By involving experts in situations that require specialized knowledge, condo directors can avoid potential pitfalls and ensure that the condo corporation runs smoothly and legally.

The Importance of Professional Advice for Condo Boards

Being a condo board member is not about knowing everything; it's about making the best decisions for the community. That means knowing when to call in the professionals. Whether it’s a lawyer for legal advice, an engineer for maintenance concerns, or an accountant for financial issues, having the right professionals by your side can significantly reduce the risk of liability.

Why it’s crucial:

• Board members are not expected to be experts in all fields.

• Professional advice ensures informed decision-making, which in turn reduces legal risks.

• Consulting experts can save time and prevent costly mistakes down the road.

  
  

By working with professionals, board members can make better decisions, reduce their legal exposure, and ensure the condo corporation remains compliant with the law.

Further Resources: Condo Board Liability

Our blog also offers a wealth of information on relevant condo law topics, making it a valuable resource for property managers and boards alike. Or, explore Stak’d, our library with over 10,000 hand-curated condo-related resources for additional summaries and tools, or dive deeper into our blog for more detailed discussions on topics that matter to you and your community.

Stepping Up Without the Fear of Liability: In Conclusion 

Serving on your condo board doesn’t have to be daunting. As long as you’re acting in good faith, using reasonable care, and relying on professionals when necessary, the risks of personal liability are far lower than many believe.

So, don’t let fear stop you from stepping up to serve your community. The board needs leaders who are dedicated to making thoughtful, well-informed decisions. With the right approach and support, you can navigate the responsibilities of being a condo director without worry.

Are you ready to step up and make a difference in your condo community? Leave a comment below or reach out if you have any questions about getting involved. Don’t hesitate to ask for help if you ever feel uncertain!

Key Takeaways:

• Condo board members are protected from personal liability as long as they act in good faith and with reasonable care.

• Professional advice from experts like lawyers, engineers, and accountants helps reduce risk.

• Documenting decisions and seeking expert advice are essential to avoid legal trouble.

-Stratastic Inc.

P.S. Still hesitant because of liability and want more education on it? Reach out to the team at Shibley Righton or find more condo lawyers in our vendor directory, My Condo Vendor.

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