What can be done about HOA quorums that have not technically been met?
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What can be done about HOA quorums that have not technically been met?
There are 35 homeowners, and each has a vote at the yearly HOA business meeting. By the bylaws, there is supposed be a quorum, as defined as 1 more than half, which with 35, could be either 18, or 19, to be able to conduct any business. However there has never been a quorum by this definition (only 8 permanent residents), and it was commonly accepted for years to accept proxies to be able to have this quorum. A family which has side issues with several homeowners has decided all of the sudden to finally make a legal issue of this technecality to say that everything done in the past was illegal. While perhaps technically correct, this proxy method had been used and accepted for years. Do they have a good case?
Asked on July 10, 2015 under Real Estate Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
"Commonly accepted" does not mean the same thing as "legal." If the HOA agreement allowed for the use of proxies, then having done so would be fine--decisions made with proxies votes would be valid. Similarly, if the quorum language only required half plus 1 of owners in residence, then its likely you have valid quorums. But HOA agreements are enforced according to their language: if a quorum of all homeowners (half plus 1) was required to transact business and there was no provision for proxies, then yes, this family would have a good case that HOA business was not conducted legally.
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