Steps to follow in transfer from developer to homeowners

Started by JohnH63 • 3 replies • 1657 views

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JohnH63 (Mississippi)
Posts: 1

Posted:

Our HOA has reached the point where the developer needs to transfer the HOA the homeowners. Is there a "rule of thumb" process or recommended steps that we need to take in order for this transfer to be done easily and smoothly? The percentage of deeded homeownership has been reached and the developer is balking a bit to turn over the management of the HOA. I know that it shouldn't be done in one easy meeting-- "poof" and it is done, but I want to have some input as to timeline, steps, etc.

TimB4 (Tennessee)
Posts: 21,063

Posted:

The process is called transition.

Here is some info:

Best Practices - Transition from the Foundation for Community Association Research (pdf document)

Transistion Plan an HOA's formalized plan for transition.

Developer/Homeowner Transition: A Guide To Success

Developer Transition in a Community Association

Developertransition.com This website is intended to specifically address the issues facing townhome, condominium, and homeowner associations in North Carolina. [still has good general information as well]

Subject: HOA transition from developer control to homeowner control Thread in HOATalk that discusses having a Transition Study done by an engineering firm.

I've also attached the checklist that is typically provided by many on this site when there is a discussion about transitioning.

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📝121341220771.doc(23 KB)

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Much of it will depend on what type relationship the owners have with the developer. It will set the tone.

We found it easier to do at the beginning of the New Year. You might just work toward 2019. One of the first steps is get a BOD, even if appointed by the developer to begin the work.

AllumW (Florida)
Posts: 68

Posted:

Wow!!! This is what I needed also. Thanks Tim.

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