Florida condominium associations and Florida homeowners associations are initially formed by the developer. However, Florida law requires control of both condominiums and homeowner associations to be relinquished by the developer to condominium owners and homeowners.
The turnover for condominiums is governed by section 718.301 Florida Statutes. This law requires the developer to relinquish control on the earliest of the following events: (a) three years after the developer has sold 50% of the condominium units; (b) three months after the developer has sold 90% of the condominium units; (c) once all units have been built, some sold, and the developer is no longer offering any units for sales; when the developer files for bankruptcy or similar relief; or (d) seven years after the declaration is recorded.
Turnover requirements for homeowners’ associations are governed by section 720.307 Florida Statutes. Members other than the developer are entitled to elect at least a majority of the members of the board of directors of the homeowners’ association when the earlier of the following events occurs: (a) three months after 90 percent of the parcels in all phases of the community that will ultimately be operated by the homeowners’ association have been conveyed to members; (b) as required in the governing documents; (c) upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure; or (d) upon bankruptcy or similar credit failures by developer.
The developer obligations at turnover are comprehensive and specific. Ansbacher Law can guide developers through a successful transition. Ansbacher Law has also assisted associations and homeowners when a developer fails to comply with their legal turnover obligations.
Contact us today for additional information or to arrange a consultation with an Ansbacher Law attorney.
