A Swain County jury sat patiently listening for seven weeks as a room full of lawyers introduced over 400 exhibits, examined and cross examined numerous witnesses and pored over thousands of emails trying to get to the bottom of a dispute between a developer and property owners. It was anyone’s guess how the jury would […]
Turnover – Considerations for your Condominium Board of Directors and Officers (WI)
Is your condominium or homeowners association currently controlled by the declarant/developer? Would you like to be prepared when the developer is ready to hand over the reins to you, the owners? In Wisconsin, developer turnover is governed by Section 703.15 of the Wisconsin Statutes. To ensure a seamless transition, there are certain steps associations should […]
A Checklist for Associations Transitioning From Developer Control (Pt 2) (DC)
This article is a continuation of “Declarant Transition – Part I,” an overview of the laws governing the declarant transition process for unit owners’ associations in the District of Columbia. Part II, below, sets forth a transition checklist that should be addressed by the initial, unit owner-elected board once it assumes control of the association […]
Developer Transition: MD Condos and HOAs – Part 2
This article is a continuation of “Developer Transition – Part I,” an overview of laws governing the developer transition process for condominium and homeowners associations in Maryland. Part II, below, is a transition checklist that should be addressed by the initial, homeowner-controlled board once it assumes control over the association from the developer. Read […]
Developer Transition: MD Condos and HOAs – Part 1
This is a two-part article dealing with “developer transition,” the process by which the governance of a condominium or homeowners association is transferred from developer to unit owner or lot owner control. Part I, below, is an overview of the legal requirements that govern the transition process. Part II will contain a “transition checklist” for […]
Turnover Troubles: Homeowners Can Take Down Goliath
One of the most recognizable narratives in human history is the famed story of David and Goliath. Often, we find that homeowners are David in the seemingly impossible fight against Goliath, the community developer. This analogy is never more apparent than in the case of association turnovers. “Turnover” is perhaps the most important stage of […]
Turnover: Transitional Considerations for the HOA
Part one of this blog discussed turnover in its initial stages: the events that trigger turnover and the files and papers the developer is required to produce to the homeowners’ association at the time of turnover. Once an association has completed those steps, the board must then turn to critical business and make crucial decisions […]
What Condominium Owners Should Know About Developer Turnover of the Association: Part II
During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of units are sold, then turnover of control of the association to the unit owners […]
What Condominium Owners Should Know About Developer Turnover of the Association: Part I
During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of the units are sold, then turnover of control of the association to the unit […]
Turnover: An Important But Often Misunderstood Event for Homeowners’ Associations
One of the most critical events a homeowners’ association will face is the “transition” or “turnover” of the association from the developer of the community to the homeowners of the community. However, many homeowners and purchasers may be unaware of what the process of turnover entails, or even what turnover of the community really means. […]
The Do’s and Don’ts of Community Association Warranties
When your homeowners association took control of your community from the developer, a lot of paperwork came with that. Some of the paperwork undoubtedly included a number of warranties. Since then, you have probably collected warranties for a range of products and services your association has purchased. But be honest: How familiar are you with […]
When the Sponsor Won’t Let Go (NY)
Roy Smith moved into the Wainwright, a 67-unit rental building in Forest Hills, Queens, back in the fall of 1990. When the building was converted to a condominium two years later, Smith was able to buy his apartment at the insider price. He thought it was a sweetheart deal. He had no idea what he […]
Transition Studies: More Pros than Cons
When community associations assume ownership of their buildings, the process is essentially no different than an individual purchasing a car or home, or making a substantial investment in the stock market.? Performing due diligence is always good practice to ensure you are getting what you paid for. Although individual unit owners may have performed some […]
Transition Your Association From The Developer To The Members
For every association, there is a point when members should take over leadership and control from the developer. An association’s declaration and bylaws will stipulate when the developer is required to turn control of the association over to the members. Read the article………….
Managing New Startup Condominiums And Communities For Developers
Managing startup condominiums and communities is a unique job. There should be a community manager with experience working as part of a team, and that team should include other professionals in addition to the developer. Read the article………….
The HOA Manager Balancing Act
Homeowner association (HOA) management companies retained by developers often must balance the competing interests of the developer and the homeowners. They just as often find the developer pulls one way while the homeowners pulls the other way with the manager in the middle. Read the article……………
Transition From Sponsor Control (NY)
New York boards have a more difficult time understanding and managing the transition process than other places in the country because specific rules and regulations exist elsewhere to guide them through the process, according to experts at a recent Community Associations Institute Big Apple chapter panel. Read the article………….
5 Prudent Actions a Community Association Should Consider When Navigating Turnover
Whether your community association is a Homeowners Association, governed by Chapter 720, Florida Statutes, or is a Condominium Association, governed by Chapter 718, Florida Statutes, there are important things the Community Association Board (hereinafter the “Board”) should know and important actions that a prudent Board should consider at turnover. Read the article…………..
Conducting election of directors during transfer of association control in a community (FL)
During the transfer of association control in a community from the developer to the members other than the developer, there are times when both the developer and members other than the developer are entitled to elect a member of the board of directors of an association. Read the article……….
The Transition Engineering Report: Triggering The Statute of Limitations in Condominium Construction Defect Cases
Earlier this year, the New Jersey Appellate Division reversed a Bergen County trial court decision, which had dismissed a construction defect case filed by a condominium association more than six years after the condominium complex was substantially completed, but less than six years after the association received the transition engineering report identifying construction defects. Read […]
Preparing for Turnover – What a Developer Should be Mindful Of (FL)
With all of the new construction of condominiums and single family homes, developers should be mindful that the end of the project cycle and turnover of the homeowners or condominium association is just as important as the beginning of the cycle and can have a meaningful impact on the developer’s bottom line. Read the article…………
When is it time for developer to cede control of condo board to homeowners?
I recently saw your article regarding condominium reserve fund requirements and was wondering if you could possibly advise our complex resident/owners on what to do when you have completely inadequate homeowners association (HOA) reserves. Read the Q&A…………….
ROADMAP: Transition from Developer Control (Arizona)
Obtain Necessary Documents – Obtaining documents that will be necessary or helpful for the association to function and conduct business is an important part of transition to avoid future problems and save the association time and money for years to come. We recommend using this checklist of documents to obtain from the Developer/Declarant: Minutes of […]
Making the transition for a new condominium association
Transition between developer control and owner control is perhaps the most important aspect of any community association. If done properly, the association will be off to a good start; if done poorly, it may take a long time to get back on track. And some associations never succeed. Read more……..
The Transition Switching from Sponsor to Owner Control
The goal of any property developer is to sell units, but until that objective is reached they have to assume all the day-to-day responsibilities to ensure smooth operations and continued sales. This requires wearing many hats—manager, board member and ombudsmen. As a result, it’s often a a relief when control of the property is transitioned […]
Transition Study, Reserve Study. What’s the Difference?
Most board members understand what a reserve study is and the beneficial role it plays in managing the financial future of the community association. Another study that comes up for recently constructed associations and is equally as important is the transition study. Read More……