Definition
The legal obligation board members have to act in the association's best interest — with care, loyalty, and good faith.
Fiduciary duty is the legal standard HOA board members are held to. Because they manage other people's money and decisions about their homes, directors must act as responsible stewards of the association.
The core duties
- Duty of care — make informed, diligent decisions.
- Duty of loyalty — put the association ahead of personal interests and avoid conflicts.
- Good faith — act honestly and within the governing documents and law.
Directors who stay informed, disclose conflicts, apply rules consistently, and document decisions generally satisfy their fiduciary duty — and are protected by it.