A Georgia HOA has hired a professional community manager to handle day-to-day operations including collecting assessments, coordinating maintenance, and communicating with homeowners. The manager begins making decisions that were not specifically authorized by the board. Under Georgia community association law, which statement accurately describes the relationship between the board and the community manager?
Correct Answer
A) The manager serves as an agent of the board and may exercise only the authority specifically delegated by the board and the governing documents, not independent decision-making power equal to the board's.
Under Georgia community association law and general agency principles, a community manager is an agent of the board of directors. The manager's authority is limited to the scope specifically delegated by the board and outlined in the management agreement and governing documents. The board retains ultimate governance authority under the declaration and bylaws, and the manager cannot unilaterally expand that delegated authority. The Georgia Property Owners' Association Act (O.C.G.A. § 44-3-220 et seq.) vests governance power in the association's board, not in hired management.
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More Ga Community Association Questions
Buyer Johnson is purchasing a townhome in Brookhaven Commons HOA. The association's governing documents include restrictive covenants from 1985 that contain language now considered discriminatory. How should the listing agent handle this disclosure under Georgia law?
A resale certificate for a Georgia condominium unit shows a reserve fund balance of $200,000. However, the association has borrowed $150,000 from the reserves to cover operating expenses. What disclosure concern does this raise under the Georgia Condominium Act?
A homeowners association has been using money from its capital reserve fund to cover routine operating expenses for the past two years, and the reserve fund is now depleted. A prospective buyer asks about the association's legal obligations regarding reserve funds. Under Georgia law, what is the status of HOA reserve fund regulation?
The Kennesaw Condominium Association board wants to create new rules about pet ownership. Under the Georgia Condominium Act, what authority does the board have to make such rules?
At Piedmont Partners in Woodstock, a licensee raises a state-law issue. Example 19 is under review. The office is debating the claim that HOA and condominium questions may be answered interchangeably because both are just forms of neighborhood organization. It is comparing that claim with the rule that boards, managers, and owners have different roles, so a manager does not automatically have the same authority as the board. The review topic is manager/board/owner roles, governing-document interpretation, and management-agreement basics. Which statement is correct?
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- → Agent David represents buyers purchasing in Marietta Meadows subdivision. The property owners association's resale certificate indicates pending litigation against the association regarding common area maintenance disputes. How should David advise his buyers about this disclosure?
- → Realtor Karen is listing a property in Johns Creek Estates where the property owners association recently changed management companies. Her seller received a notice about the transition. Under Georgia law, what records must the outgoing management company transfer to maintain continuity?
- → A unit owner in a Georgia condominium wants to know what rights she has to attend meetings of the association's board of directors. Under the Georgia Condominium Act and typical condominium governance provisions, which statement is most accurate?
- → A condominium association charges a transfer fee and a document preparation fee when a unit is sold. Under the Georgia Condominium Act, what standard governs the transfer-related fees an association may charge?
- → Developer Karen is transitioning control of the Roswell Condominium Association to the unit owners. Under the Georgia Condominium Act, when must this transition of control occur for a non-expandable condominium?
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Previous Question
A licensee is representing a buyer interested in purchasing a resale home in a Georgia HOA community. The buyer asks whether reviewing the association's budget and governing documents before closing is necessary. Which statement best reflects proper practice regarding association documents in a Georgia community resale transaction?
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A buyer is purchasing a resale home in a Georgia HOA community. Which statement best describes the buyer's responsibility regarding association documents?