Condo Troubles
Coming back from Clerkship interviews today, I was given a bit of caution about buying into condos from my cab driver. Turns out that quite a few condos are run like fiefdoms by their board of directors (or the building manager if the board is new). Once in office they can be tough to remove - those who aren't there will often vote to retain an old board, and others can be intimidated to stay in line. More interesting is that it may be common practice when repairs or maintenance comes up that corrupt board members occasionally will inflate the true price and receive a kickback. Seems like a classic agent-principal problem - but I am not sure how widespread this is as my info is only second hand. Anybody have any experience with issues similiar to do this?