INDUSTRY FOCUS best practice transitioning
INDUSTRY FOCUS best practice transitioning
Buying into an estate is a big financial commitment, and the purchaser enters into the agreement with a number of expectations. If the reality does not match the created expectation there will be unhappiness, and all the relationships around the purchase are bound to be confrontational.
Almost every aspect of life can be described in terms of relationships, and the development and growth of a residential community is no exception. Like relationships between people, relationships within residential communities evolve, and we call that process“ transitioning”. And, just like evolving relationships between people, transitioning in communities can be harmonious or acrimonious, or even downright nasty.
WHAT IS TRANSITIONING?
Transitioning is the general process by which the control and responsibilities of the governing board of a community association are transferred from the developer to the people who have bought property in the development. Although that process 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, it is actually much broader in scope. It includes the transfer of governance, the acceptance of the common property, and accounting for funds. Transition is not a single event, like the election of an owner-controlled governing board or the execution of a settlement agreement about construction defects in the common property. It is a multi-stage process of many events taking place over a period of time.
From a philosophical standpoint, transition begins many times as each new owner moves into a community. At that point, the new owner is subject to governance by the association that the developer has established for the operation and administration of the community, and to the provisions of the governing documents of each such association. This includes the rules and regulations. From this point the owner must look to the association rather than to the developer for guidance and assistance in dealing with common property and other community problems – except for uncompleted or warranty work. However, the line between developer and association responsibilities is not always a clear one, especially when it comes