What is Developer Turnover?

Also called: Transition

Turnover is the point at which control of the association passes from the developer to a board elected by the homeowners.

Governing documents and state law set the trigger — commonly when a set percentage of lots or units has been sold, or after a fixed number of years. Until then the developer typically appoints the board and controls the budget.

Transition is a high-stakes moment. The new owner-controlled board should obtain all records, funds, contracts, warranties, and as-built plans; commission an independent reserve study; and consider a transition study to identify construction defects before warranty and statutory deadlines expire.

Missed deadlines at turnover are one of the most expensive mistakes a community can make, because unfunded reserves and undiscovered defects become the owners' problem.

Related terms

Board of DirectorsThe board of directors is the group of owners elected to govern the association, set the budget, enforce the documents, and hire vendors on behalf of all members.Reserve StudyA reserve study is a professional analysis of the association's major components, their remaining life, replacement cost, and the funding needed to pay for them.Governing DocumentsGoverning documents are the full set of records that control an association: the declaration/CC&Rs, bylaws, articles of incorporation, plat, and board-adopted rules.

Answers straight from your own documents

Melo tells residents what Developer Turnover means in your community — citing the exact page of your CC&Rs, budget, or rules.