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What are the rights of homeowners associations in regards to investing in Arizona?
Wiki User
∙ 9y ago
Associations for common interest communities in any state are chartered with a trust, given them by owners who both elect the directors and pay monies to protect, maintain and preserve their real estate investments.
There are times when this trust is called a 'fiduciary trust', and regardless, this level of trust is a best practice for directors in these associations.
Associations' rights insofar as investing the cash entrusted to them, may be akin to rights of other corporations in similar situations. For example, the association may be a non-profit corporation.
Bottom line is this: no investment should compromise the principle dollar amounts entrusted to the association's board of directors. Rights that infringe on this basic reality must be avoided.
Wiki User
∙ 9y ago
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