Transition is a term that has evolved in recent years to describe the general process by which the control and responsibilities of the governing board of a community association are transferred from the developer to the persons who bought homes in the community association. Although it includes the assumption of the obligation to maintain the physical assets for which the association is responsible and is often viewed only in that narrow context, the transition process is much broader in scope. It includes the transfer of governance, the acceptance of the common property, and the accounting for funds. Transition is not a single event, such as the election of an owner-controlled governing board or the execution of a settlement agreement regarding construction defects in the common property. It is a multi-stage process of many events taking place over a period of time.
Table of Contents of this Best Practice Report on Transition
Section 1. Introduction
Section 2. What Is Transition?
Section 3. Case Studies
Section 4. The Development
Section 5. The Challenges
Preparation of the Documents
Guidelines for Governance
Maintenance of Common Property by the Association
Engineering Reports and Punch Lists
Section 6. Who Are the Parties?
The Approving Authorities
Section 7. Emerging Strategies to Discourage Litigation
Section 8. Attachments
Sample Transition Agreement
Example List of Documents to Be Turned Over
Section 9. Additional Resources