Quote:
Originally Posted by URY914
Can someone tell me this:
At what point in time does a new condo building transfer from the developer to the Condo Board for control of the building?
When the last of the original units are sold?
The developer cashes the check and is free and clear and from here on it's the board's responsibility?
How is this transfer done?
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There are different factors depending on the property being developed.
But in short the transfer takes place as each unit is sold. Again, a condominium is a form of ownership not a type of building. Technically control transfers when 51% of the units are sold as the majority vote is now in the hands of the unit owners not the developer. The developers control will diminish as each unit gets sold off. When 51% is sold off the developer still holds the largest investment in the association property, so the by-laws are written in such a manner as to protect the developer. This is designed so the new owners can not come in and take control of the property. Unfortunately in most associations the by-laws are never amended to reflect the developer is now out of the picture. So it becomes a tangled mess trying to decipher where one ownership stops and another begins, what is association property and responsibility and what is unit ownership and responsibility.
I would think in a property like this going back to inception the building could not get a C/O unit all systems maintaining the building were operational? This would mean while lower floor units may be finished they could not close until the upper floors were secured and all systems in the building turned on.
Also new construction has a warranty called 2/10. The first two years the developer pays for repairs (assuming the "developer" is still in business) then the warranty company takes over for the remaining eight years. Many large developments are built through a corporation that has no assets. Everything is sub'd out. So something goes wrong you sue the corporation the corporation files bankruptcy and that is that. The person who created the corporation creates a new corporation and moves on to the next project.
Oh and FYI- Condominiums are developed because it allows a developer greater density for a given parcel of land. They would not go through the cost of creating a condominium if they could just sell you a house or an apartment.