Managers: 5 Ways to Avoid Unnecessary Liability
Experience has proven that a manager who takes the effort to avoid the five practices listed below benefits both from reduced liability and the increased professionalism that he/she exhibits in dealing with boards, vendors and developers.
1. Do not exceed documented authority to act
The contract between the manager and the association and the minutes/resolution of the Board create the primary sources of authority to act as the association's agent. When taking action which could bind or impute liability to the Association, make sure that the action is duly authorized in writing. Failure to ensure that a Board's directive to the manager is documented in writing could, at best, lead to confusion between the Board and the manager as to the action to be taken and, at worst, expose the manager to liability for taking unauthorized action.
