A condominium director's relationship with a contractor can create a conflict even when the proposed price appears attractive. Florida section 718.3027 applies to associations that are not timeshare condominium associations. It requires directors, officers, and their relatives to disclose activity that may reasonably be viewed as a conflict. The provision should be read with the nonprofit-corporation conflict statute, section 617.0832.
Review the relationship before the vote
The statute identifies transactions with a director, officer, or relative, and interests in businesses dealing or proposing to deal with the association. For this section, a relative is someone within the third degree of consanguinity by blood or marriage. A procurement questionnaire should ask about ownership and family connections as well as the person signing the bid.
For a proposed conflicting activity, the activity must appear on the meeting agenda, with the related contracts and transactional documents attached. Required disclosures belong in the written minutes. These requirements make early identification important: a disclosure made only after the meeting begins can leave the board without an appropriate notice package.
The interested person may attend and present information. After the presentation, the director, officer, and relevant relative must leave during discussion and the vote. An interested director or officer must recuse from voting. The statute addresses how that person's attendance counts for quorum, and approval requires two-thirds of all other directors present. The secretary should document the departure, return, and vote rather than merely record that a motion passed.
Owners retain review rights
At the next regular or special membership meeting, the association must disclose the transaction. On a member's motion, the transaction can be put to a vote and canceled by a majority of members present. The statute limits the association's resulting obligation to the reasonable value of goods or services already provided and excludes specified termination penalties in that circumstance.
A separate provision concerns an improperly disclosed contract. A written termination notice carrying consent from at least 20 percent of the association's voting interests can trigger the statutory termination mechanism. Whether the facts meet these requirements should be reviewed by counsel before the board sends demands or announces that an agreement has ended.
Practical board checklist
- Obtain written relationship disclosures before selecting vendors or publishing the agenda.
- Compare the proposal with independent market information and document why the terms benefit the association.
- Include the required transaction materials with the agenda and record disclosures in the minutes.
- Arrange the conflicted person's presentation, departure, recusal, and the correct approval vote.
- Calendar the next membership disclosure and preserve the signed agreement and supporting bids.
- Seek legal review immediately if an owner invokes a cancellation or termination procedure.
Following the conflict process does not replace contract due diligence. Insurance, scope, price, payment controls, and performance obligations still deserve the same careful review as any major association purchase.
Reviewed November 4, 2026. Florida educational information only. Obtain association-specific legal advice before acting.