Developer Transition: How Community Associations Assume Independence 

Introduction—Background and Key Points

Transition from developer to owner control in a condominium or master-planned community is one of the most critical phases in a community's growth. If conducted properly, it will give the association the independence it needs to mature into a capable governing body. This report will help both developers and owners enjoy the benefits of a successful transition and avoid the legal and moral pitfalls of an improperly conducted transition.

• Transition from developer control occurs when control of the association shifts from the developer to the owners. Transition evolves from the time most units are sold and conveyed to the owners.
  
• A smooth transition benefits both the developer and the owner. Cooperative efforts between both parties can result in a well-run association. A poorly planned transition with uncooperative developer-owner relations can result in angry unit owners, lawsuits, a bad reputation for the developer, and an ineffective association.
  
• The developer should strive for early and continuing owner involvement and education in association operations.
  
• The developer and the owners must recognize their mutual interests and cooperate and communicate with each other during the transition period.
  
• An interim set of committees—staffed primarily by owners—facilitates transition work and provides training for future leaders and ongoing committees.