IREM Certified Property Manager (CPM) Practice Test

The governance documents of a condominium association play a crucial role in establishing the framework for how the association operates, including the policies surrounding conflicts of interest. These documents typically include the bylaws and articles of incorporation, which not only define the roles and responsibilities of board members but also set forth guidelines for ethical conduct and managing potential conflicts.

By detailing the conflict-of-interest policies, governance documents ensure that board members are aware of their obligations to act in the best interests of the association and its members. This helps foster transparency and trust within the community, as it provides a clear standard for addressing situations where a board member's personal interests might conflict with their duties to the association.

In contrast, board meeting minutes serve primarily to record the discussions and decisions made during meetings but do not establish policies. Financial statements provide insight into the association's fiscal health but do not address governance matters. Unit owner agreements are individual contracts between the association and unit owners, which typically cover ownership rights and responsibilities, not broad governance policies.