Good news! Serving as an officer of a residential property owners’ association (POA) where you are a property owner may have less restrictions than you think! Per Commission Rule 58A .0118(b), a broker who receives trust money belonging to a property owners’ association in their capacity as an officer in the association in a residential development in which the broker is a property owner and receives no compensation is exempt from Rules 58A .0116 and 58A .0117 regarding handling the funds of others.
While serving your own POA as an officer, you are not required to have a trust account as required under Subsection (a) of this rule; however, you are not permitted to receive any compensation for your service as an officer. If you are compensated, then the rules apply. Of course, a broker is always prohibited from converting trust monies belonging to the POA to their personal use or for purposes other than intended. Moreover, a broker cannot assist others in the conversion of the trust monies. And, all brokers handling HOA funds are advised to keep detailed records.
Reminder: If the broker professionally manages the funds of a property owner association for compensation, they will be subject to the requirements of Rules 58A .0116, .0117, and .0118.