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Understanding how association control is transferred

When developers in the Miami-Dade area build a condominium complex, there comes a time when they have to transfer over the control of the association to the members. The Florida Legislature states that there are several guidelines that apply to what the developers need to provide to the association and when the transfer is completed.

The developer is responsible for turning over all pertinent information about the association and this includes the following:

  •          Bylaws
  •          Financial records
  •          Contact information for all employees of the association, including contractors
  •          Government permits
  •          Property deeds

In addition, the association is legally entitled to receive all existing contracts that concern it. The developer is required to turn over this information to the association within 90 days of the association members having the power to “elect at least a majority of the board of directors” for the association.

During the setup phase, the developer has the right to elect members to the association’s board of directors. However, the state’s law sets out conditions under which, members can make their own elections. Bankruptcy is one of those conditions. The association is given the power to take control after the court appoints a receiver, but the court can rule against this if it decides that the association would be harmed by such an action. The association will also receive control if the property becomes the subject of a foreclosure action or in other circumstances concerning the conveying of parcels to the association members. To learn more about this subject, please visit our web page.

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