Last week, we discussed when turnover from developer control to unit owner control is triggered. Relinquishing control of the Board of Directors is not the only responsibility of the developer at the time of turnover however.
What Documents Must Be Turned Over by the Developer at Turnover?
Generally speaking, in both an HOA and condominium association, the developer must deliver to the association, at the developer’s expense:
all property of the unit owners and of the association which is held or controlled by the developer including but not limited to, the original or a photocopy of the recorded governing documents and all amendments thereto,
the minute books, including all minutes, and other books and records of the association,
any house rules and regulations which have been promulgated,
resignations of officers and members of the board of administration who are required to resign because the developer is required to relinquish control of the association,
the financial records, including financial statements of the association, and source documents from the incorporation of the association through the date of turnover which records must be audited by an independent certified public accountant to determine that the developer was charged and paid the proper amounts of assessments,
association funds or control thereof,
all tangible personal property that is property of the association, which is represented by the developer to be part of the common elements or which is ostensibly part of the common elements, and an inventory of that property,
a copy of the plans and specifications utilized in the property or remodeling of improvements and the supplying of equipment to the property and in the construction and installation of all mechanical components serving the improvements and the site and in a condominium, with a certificate in affidavit form of the developer or the developer’s agent or an architect or engineer authorized to practice in this state that such plans and specifications represent, to the best of his or her knowledge and belief, the actual plans and specifications utilized in the construction and improvement of the property and for the construction and installation of the mechanical components serving the improvements,
a list of the names and addresses, of which the developer had knowledge at any time in the development of the property, of all contractors, subcontractors, and suppliers utilized in the construction or remodeling of the improvements and in the landscaping of the association property,
copies of any certificates of occupancy which may have been issued, any other permits applicable to the property which have been issued by governmental bodies and are in force or were issued within 1 year prior to the date the unit owners other than the developer take control of the association,
all written warranties of the contractor, subcontractors, suppliers, and manufacturers, if any, that are still effective,
a roster of unit owners and their addresses and telephone numbers, if known, as shown on the developer’s records,
leases of the common elements and other leases to which the association is a party,
employment contracts or service contracts in which the association is one of the contracting parties or service contracts in which the association or the unit owners have an obligation or responsibility, directly or indirectly, to pay some or all of the fee or charge of the person or persons performing the service and all other contracts to which the association is a party.
Only in a condominium however is the developer also required to provide a report included in the official records, under seal of an architect or engineer authorized to practice in this state, attesting to required maintenance, useful life, and replacement costs of the following applicable common elements comprising a turnover inspection report:
- Fireproofing and fire protection systems.
- Heating and cooling systems.
- Electrical systems.
- Swimming pool or spa and equipment.
- Pavement and parking areas.
- Drainage systems.
- Irrigation systems.
In an HOA, the developer must also provide all deeds to common property owned by the association.
Developer or developer’s counsel will always want the association to execute a receipt for all of these documents. I WOULD SUGGEST THAT YOU DO NOT SIGN IT UNLESS AND UNTIL COUNSEL FOR THE ASSOCIATION AGREES THAT ALL OF THESE DOCUMENTS WERE TURNED OVER IN ITS PROPER FORM.