Which statement best describes wrongful acts in a community association context?

• A. They are actions by the association that can lead to legal claims and liability.
• B. They refer only to criminal acts.
• C. They are only related to tax issues.
• D. They are irrelevant to directors and officers liability.

Answer: (A)

Wrongful acts in a community association context are civil wrongs—actions or omissions by the association or people acting on its behalf—that can lead to legal claims and liability. This covers a range of situations beyond criminal conduct, such as failures to maintain common areas, breaches of fiduciary duties, discrimination or unfair housing practices, misrepresentation in disclosures, or improper use of funds. The important point is that wrongful acts can expose the association and its leaders to liability, not just criminal charges. Directors and officers can be held liable for these acts because they oversee management and decisions and owe fiduciary duties to the community. That’s why the statement that best describes wrongful acts is that they are actions by the association that can lead to legal claims and liability.