Re: Transition Committees

Andrea, in response to your questions:
1) The management company should be advised by the title company within a week. We require a copy of the warranty deed be sent promptly.

2) Ask the MC for a list of properties that have been sold. Let the MC know you expect them to bill and keep accurate records which will be audited upon transition of control. Most counties post ownership of real property info on web sites which you can access. Call your County Clerk to find out the URL and how up-to-date info is.

3) It could be but you can find out in the transition audit and bill the Developer accordingly.

4) You definitely should form a transition team. A transition audit should include may items including a financial audit. These items are listed below.

5) If there are items in the Declaration which need to be amended which the Developer is in favor, it is easier to amend now. It is true that class B membership becomes irrelevant when the Developer leaves but this should not be amended until later when other items need to be amended.

HOA Transition from Developer to Homeowners Check List

The following documents should be received from the Developer:
1) A roster of the owners (and mortgagees), include addresses and telephone numbers
2) Control of Association's funds
3) Financial Records of Association with an accounting of association funds and financial statements from the date the association commenced receiving funds and ending on the date on which the Declarant control period ends (Transition Audit)
4) All of the tangible personal property of the owners and the Association held or controlled by the Declarant (such as deeds to Common Elements)
5) Certificates of occupancy and permits issued for Common Element improvements
6) Plans and specifications used in the construction of the improvements in the Common Element
7) Original or certified copy of the recorded Declaration, as amended and/or supplemented, Articles of Incorporation, Plat Map, Bylaws, Rules and Regulations (if any), and Minutes Book
8) Copies of all insurance policies currently in effect
9) Employment contracts and service contracts in which the Association is the contracting party
10) All warranties of contractors, subcontractors, suppliers and manufacturers that are in effect
11) Corporate seal (if there is one)
12) Non Profit Certificate from the Secretary of State
13) Documents to support any special meetings of the association held (elect members of the Executive Board and other official business)
14) Resignation letters from the Declarant's Officers and members of the Executive Board
15) Signature cards for all association bank accounts and any appropriate banking resolutions
16) Current budgets and prior budgets
17) Federal and State Tax ID numbers
18) Federal and State tax filings for prior years
19) Evidence of compliance with Fair Housing Act accessibility requirements
20) Addresses for changing billing for vendors (trash, utilities, etc.) and contractors.
21) Copy of architectural standards, if any, and copies of modifications and variances approved