The purchase of a new home is always an exciting time. Many questions about the condo/HOA may be answered by a salesperson, rather than a representative of the condo/HOA authority.
We can help your community to ensure that the transition of control from the developer to the owners is as seamless as possible.
Most Associations have a timeframe for developer transitions specified within the Declaration or Bylaws. Even after transition, some documents may provide that the original Declarant still has architectural review authority until the last lot or unit is sold.
Condominium Transitions are Governed by Statute. Generally, the maximum time for a condominium transition from the developer to the owners is generally five years, although that timeframe may be shortened based upon when certain percentages of units are sold.
Planned Unit Developments (aka HOA) Must Transition After Declarant Ownership Ends. The Planned Unit Development Act requires that the Board transition from the Declarant to the membership at the time the last Sublot is sold. However, many developments have shorter timeframes prescribed within the Declaration or Bylaws.
Ensure that the Association’s Finances are in Order. Once the owners take control of the Association, it is important to take a close look at the Association’s finances. A good first step is to ensure that all financial records are present and to hire a professional accountant to review them once received.
Take a Close Look at the Budget. At times, developers keep maintenance fees low in order to help draw in potential buyers. The ownership needs to take a close look at the current expenses, as well as future projected capital maintenance, to ensure that the Association is properly budgeting for the operating and reserve accounts.
Our experienced team of attorneys and legal staff, and in-house title company are here to help assist the owners and the Association in the turnover process. This is a unique area of the law, and it is important to have legal counsel familiar with the pitfalls of transitions. Contact us to discuss how our attorneys experienced with the transition process can help your community.