Developer to Homeowner Transition Services
Every new community association will transition from developer control to homeowner control. Sometimes the transition is smooth. Sometime it is not.
Professional developers will often hire an HOA transition consultant to assist in the turnover of responsibility to the homeowners. Other developers do not hire a transition consultant leaving the homeowners at a substantial disadvantage.
The HOA transition services we offer include the following:
- An accounting of all documents that the developer is required by law to turn over to the new board of directors;
- An accounting of all homeowner association assessments from the date the first escrow closed to the current date;
- Explaining the required process for electing a board of directors and assisting with the election;
- Reviewing the CC&Rs, Bylaws, and any TIC documents, if applicable with the first elected board of directors;
- Explaining the correct process for holding board meetings, providing required legal notices, holding executive sessions, establishing operating rules, and the Open Meeting Act;
- Reviewing insurance coverages with the new board of directors;
- Explaining the budget process, the legal requirement for maintaining reserves, the rights and obligations of board members, the rights and obligations of members of the association; and
- A question and answer session to answer any questions not otherwise addressed.
Transition consultants should always represent the association, and not the developer, regardless of which entity pays the consultation fee.
Section 2792.23 of the Regulations of the Real Estate Commissioner of California sets forth the documents developers (subdividers) are required to turn over to homeowner associations that they form.
Documents to be provided by the developer include:
- The recorded subdivision map or maps for the project.
- The recorded condominium plan, if any.
- The recorded Covenants, Conditions and Restrictions for the subdivision, including all amendments and annexations thereto.
- Any TIC documents, if applicable.
- The Association's filed articles of incorporation.
- The Association's bylaws.
- All architectural guidelines and all other rules regulating the use of an owner's interest in the subdivision or use of the common area which have been promulgated by the Association.
- The plans approved by the local agency or county where the subdivision is located.
- Any bond or other security device in which the Association is the beneficiary.
- Any written warranties being transferred to the Association for common area equipment and fixtures.
- Any insurance policy procured for the benefit of the Association, its governing board or the common area.
- Any lease or contract to which the Association is a party.
- The membership register, including mailing addresses and telephone numbers, books of account and minutes of meetings of the members.
Please contact us if we can assist you by providing transition services.
Coast Management of California