What is “Transition or Turnover?”

What is “Transition or Turnover?”

  • Posted: Oct 20, 2015
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“Transition” is the term of art describing the multi-step process to transfer responsibility for the Community Association to the homeowners/unit owners. Transition is a process, not an event. At the end of that process, control of the Community Association is ultimately turned over to the owners.   For condominiums, the Declaration establishes a “Period of Declarant Control” based upon statute. For property owners’ associations, the Declaration may establish such a period, but currently, the declarant control period is is not addressed by statute. During the Period of Declarant Control, the Developer appoints members of the board of directors for the Association; hires and has contact with the Association’s management company; and is the architectural control committee. At the expiration of the Period of Declarant Control, the Developer resigns its board of director positions. The owners hold a meeting to elect a new board of directors comprised of owners. The Developer turns over the Association’s books and records, and relinquishes control of the Association to the owners.   How do we begin the transition process? As transition nears, it is time for the Declarant and the owners to initiate discussions on the transition process, and for owners to become familiar with the governing documents. There are several suggestions to help get the process started in earnest. For example, owners can propose adding one or more homeowners to the Board prior to transition; can set up a transition committee or advisory committee; can schedule a community meeting to explain that control of the Association will soon be turned over to the owners; and can seek volunteers for the transition committee. Some of the owners may have experience and expertise in the issues the community may face, and these owners can be very helpful druing transition.   Conclusion Transition requires a thorough review and understanding of all aspects of your Association, including knowledge of financial issues; maintenance and engineering needs; the need to transfer common area (in non-condominium associations); insurance policies and needs; management responsibilities; covenant enforcement; and so on. Without knowledgeable guidance from an independent attorney experienced in common interest communities, owners can be overwhelmed with the immense responsibilities. Start early with your transition committee and contact a knowledgeable attorney to begin the process with your association.   Stop us if you’ve heard this one before: You announce an HOA election providing proper notice, yet only a handful of owners show up to vote. You end up short of your quorum requirements, and you have to start all over again with your fingers crossed that next time, your luck will be better, and your election will be successful. Or instead, you hold your election, get definitive results—you think—but then the election gets challenged. We can help you do better!  many community association lawyers who’ve devoted their extensive—and impressive—careers to solving the challenges HOAs face every day. You’ll learn from members valuable, workable tactics you can implement immediately to make your election process smoother, more successful, and less contentious. You’ll learn: 1- How to determine the specific steps your HOA must follow to conduct proper elections 2- Details on the most common mistakes boards make from election start to finish, and the most likely challenges to your election—and how to nip them in the bud 3- Information to help you identify your quorum requirements and creative tactics to ensure you get a quorum 4- Common rules governing who can run for your HOA board, along with insights on the pros and cons of changing your eligibility requirements—and tips on how to do it if you decide you should 5- Suggestions for general rules your board may want to consider passing to make holding elections easier 6- Tips to provide effective notice—and undercut any attempt to unwind your completed election based on claims of insufficient or improper notice 7- What you must know about proxies 8- Techniques you can deploy on the day of the election to avoid on-the-spot glitches Plus much more! It’s just an hour of your time, but you’ll walk away much wiser and better prepared for your HOA’s next election.   If you contact KBRLegal.com They are the experts in Association Law in South Florida. The Courses they give monthly can help you with understanding what is needed as a board member and your community.  …

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