Leni Cummins is quoted in a New York Times “Ask Real Estate” column responding to a question asking whether real estate brokers serving on a condominium’s board of directors constitutes a breach of ethical and legal responsibility. Board members have a legal obligation to prioritize the interests of the association and all unit owners. It is considered a breach of their fiduciary duty to use confidential information they are privy to for personal gain.

“There is a way that a broker can buy an apartment in a condominium while serving on the board without violating that fiduciary duty: if the member is not influencing how the board treats the purchase application for that unit, and does not vote on whether the board will exercise its right of first refusal when the unit goes up for sale, then there is no impropriety,” said Leni. “But your situation sounds more egregious. Board members cannot use information they learn in the course of their work for the condominium to influence a buyer or seller, and they cannot use confidential information for their private gain if it harms the condominium or their fellow owners. If this broker is buying units at artificially low prices and then leases them, he could be dragging down the value of other units.”

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