Your Condo Board’s Legal Obligations: Fiduciary Duty, Disclosure, Meetings, and More

Serving on your condo association’s board comes with a host of responsibilities and legal obligations. It’s a duty that should not be taken lightly! 

Whether you currently serve on your association board, are planning to run for an elected position or are simply a unit owner in a Chicago condominium, it’s important to know the rights and responsibilities of all board members. Below we review what it means to act as a fiduciary and other legal obligations board members must uphold. 

Chicago Condo Board Member’s Fiduciary Duty

Per the Illinois Condominium Property Act, board members owe a fiduciary duty to the association and its members, but what does that mean in practice? Here we break it down:

  • All decisions must be made in the best interest of the community – That means community interests come before individual interests. Full stop.
  • Board members must uphold the “duty of care” – This refers to board members’ responsibility to thoroughly investigate issues and perform due diligence whenever soliciting a vendor for work or making plans for property improvements.
  • Board members must exercise the “duty of loyalty” – In short, that means no taking action that could jeopardize the community or put personal interests first.

In addition, board members must also abide by all association governing documents, ensure at least four board meetings and an annual meeting are held each year, and fulfill other management responsibilities, including but not limited to:

  • Maintaining an annual budget
  • Providing for the ongoing operation, care and maintenance of the common elements
  • Ensuring adequate insurance coverage
  • Levying, collecting and expending assessments
  • Fulfilling all other board responsibilities

Chicago condo association boards must take great care to manage their community and all that entails. We’re here to help. At First Community Management, we partner with more than 115 condominium, townhome and homeowner associations in the greater Chicago area to help board members uphold their fiduciary duties. Contact us today to learn how we can help your association.

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