Board Member Eligibility for Entity-Owned Condominium Units
It is common for entities, such as a corporation, LLC, or partnership, to hold title to a condominium unit. However, this form of ownership can result in entity-owned units being prohibited from submitting a candidate for the condominium’s board of directors when the condominium’s governing documents limit board member eligibility to unit owners.
The Condominium Act defines a “Unit Owner” as “the record owner of legal title to a condominium parcel.” Moreover, the Florida Not For Profit Corporation Act, which applies to condominium associations established as non-profit corporations, requires all directors to be natural persons. Thus, for condominiums which require all board members to be unit owners, only those individuals who are listed on the Deed are considered unit owners for board member eligibility purposes.*
In some instances, the governing documents will define who qualifies as an eligible board member candidate on behalf of entity owned units, such as the partner of a partnership or the officer or authorized agent of a corporation. Occasionally, the governing documents require entity-owned units to designate the names of persons who will occupy the unit. In such an instance, it is possible the designated individuals are eligible candidates for the board. However, if the governing documents are silent, entity-owned units may be entirely excluded from offering a candidate for the board.
Ultimately, board member eligibility for entity-owned units turns upon the specific language of the condominium’s governing documents. If you are unsure about board member eligibility for your association, the experienced attorneys at Haber Law can help you.
*One exception to this rule is contained in Section 617.0802, Fla. Stat., which provides that the grantor and beneficiary of a trust holding legal title to a condominium unit are considered members of the association and, therefore, eligible to serve on the board of directors.