Hawaii Real Estate State Practice Exam

Do members of a condominium board of directors have a fiduciary duty to their association?

1. True

2. False

3. Only if elected

4. Only for financial decisions

The correct answer is: True

Members of a condominium board of directors indeed have a fiduciary duty to their association. This duty is a legal and ethical obligation requiring board members to act in the best interests of the condominium association and its members. It encompasses ensuring sound management of the association's resources, protecting the community's assets, and making decisions that benefit the overall well-being of the property and its residents. Fiduciary duty means that the board must put the interests of the association above their own. This can involve a range of responsibilities, including financial management, maintenance decision-making, and compliance with applicable laws and regulations. The duty exists regardless of whether they were elected, appointed, or if it pertains to specific types of decisions, as long as they hold the position. Understanding this is crucial for those involved in condominium governance, as failing to fulfill this duty can result in legal consequences for the board members.