Was our HOA board of directors election legally and if not can I be sued?Our election was held Nov Immediately after the election, homeowners complai

Asked by Bluffton, South Carolina Thu Jan 28, 2010

ned as to how the entire voting procedure was handled. The Monday after the election a homeowner contracted our property manager and notified him of voting ballots being completed by two people who did not hold the proxies for these ballots. The board was not notified of this and did not become aware of this information until was Sunday, with exception of one board who knew about three weeks earlier. After reviewing the proxies, we found one forged proxy (verified by homeowner), proxies with different penmanship and varying ink, different ink, and other issues that would question why the property manager would have accepted these proxies. He states they probably meant for her to have them. The board does not wish to take any actions re: this information. Decisions are being made in excess of $1000 for repairs for homes that have divided our community. Are we fulfilling our fiduciary responsibility? Can I be held liable in civilly - D&O does not cover "dishonest acts"? Much Thanks M

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Jason Queen, Agent, Seneca, SC
Mon Feb 20, 2012
On a case like this I think that legal advice is needed more than advice of a realtor or property manager. Anytime there is fraud involved it becomes a whole new issue and South Carolina LLR should be notified if you think there were any actions that a professional took that were fraudulant in nature. I would check with a good real estate lawyer. If I was in this situation I would call John Fields 864-882-1812. He is in Seneca, SC though. If you are further away from there call your local real estate office and ask for the most experienced real estate attorney they know.
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