TURNOVER – PART 2
Eric Glazer, Esq.
Published June 11, 2018
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.
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,
insurance policies, 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
3. Fireproofing and fire protection systems.
5. Heating and cooling systems.
7. Electrical systems.
8. Swimming pool or spa and equipment.
10. Pavement and parking areas.
11. Drainage systems.
13. 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.
HOA & Condo Blog
Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.