Transitioning from developer control to owner control is a critical and important juncture for an association. Understanding what a developer is required to do and what it is not permitted to do is essential in initiating and maintaining effective owner management of an association. Often, associations have been asked to “sign-off” by a developer on various transitional items such as finances, reserves, construction and maintenance issues and the like, creating unnecessary issues and potential expenses that could have been avoided or addressed.
Our attorneys are well-versed and experienced in guiding an association in the immediate post-transition period with regard to such issues as:
- Financial control – obtaining financial as well as physical control of the association
- Preserving an association’s rights to pursue the developer for construction related or other deficiencies
- Determining violations of the developer’s disclosure statement obligations
- Recommending and reviewing an engineer–supported transition study
- Assuring the existence of proper casualty, directors’ and officers’, workers’ compensation, and other insurance
- Requiring a developer to provide all required financial and other books and records, including all meeting minutes
Our firm can assist an association in engaging in an informed and effective transition from developer control and enable it to create a solid foundation upon which to build its future.
For more information on a successful transition, please read the article “Steps for Successful Transition From Developer to Owner Control.”