Throughout the developer turnover process, your condominium association can expect many events to take place. The developer turnover process is a momentous occasion, and is perhaps the most important in a condo association’s history. This transition is a significant milestone for a community, as homeowners are given control of the community.
During the developer turnover, your condo association will acquire all of the items from the contractor that are listed in the contract. Florida law requires that the developer transfer control of the condo association to the homeowners when the developer has sold 15% or more of the total amount of units. When this occurs, the homeowners are entitled to elect one-third of the members of the board. Three years after 50% of the condo units have been sold, or three months after 90% of the units have been sold (whichever takes place first), homeowners will be entitled to elect a majority of the board. Make sure to refer to your documents, as these time frames can vary from one association to another.
Other events that can initiate the developer turnover process include bankruptcy, receivership of the developer, the appointment of a state court receiver, etc. – as stated by the Florida Condominium Act. Once the homeowners are given legal control from the developer, they must accept the responsibility to manage the community themselves.
Your condo association should proceed through the condo turnover process properly, meticulously, and vigilantly. It is important to obtain as much information from the developer as possible during the turnover. Ask your property management company for assistance, as they should have prior experience with this turnover process. Read Florida Statute 718.301 - Transition of association control in a community (with respect to condominium associations), for more information.
Has your community recently experienced a developer turnover? Let us know in the comment section below.