Nevada Community Manager Practice Exam

The duty of loyalty is a fundamental principle in the context of fiduciary responsibilities, particularly for community managers and board members. It requires that individuals act in the best interests of the organization or community they serve, putting those interests ahead of their own. Self-dealing occurs when a person in a position of trust engages in a transaction that benefits themselves at the expense of the community or organization. This behavior directly violates the duty of loyalty because it undermines trust, creates potential conflicts of interest, and can harm the community’s interests for personal gain.

By explicitly prohibiting self-dealing, the duty of loyalty ensures that community managers prioritize the well-being and success of the community. This helps maintain ethical standards and accountability in the management of community resources and governance. Understanding this principle is crucial for maintaining integrity and trust within any community association.