Successful Turnover from Developer to Condominium Association 

 Posted on February 10, 2025 in Condominium & Homeowner Association Law

After all the walls have been built, the siding installed, and the roads paved, owners and tenants will start moving into a new development. Another key event early on in the life of a development is the transfer of control by the developer to the condominium association. This can be a complex transition and an experienced Arlington Heights, IL condominium association attorney can advise condominium associations on how to complete the process smoothly and ensure the condominium association starts off strong.

When Must the Turnover Be Completed?

Developers control the condominium association prior to the election of a board of managers under the Illinois Condominium Property Act. Turnover of the condominium association must take place either 60 days after 75 percent of the units have been transferred to owners or three years after the condominium association has filed the declaration outlining the rules of the condominium — whichever comes first.

What Should the Board Do After Developer Turnover?

There are several legal and administrative steps a board should take following the turnover, including: 

Hold Elections

An election should be held to elect a board to manage the condominium association.

Ensure Developer Provides Relevant Information

The developer is legally obligated to provide certain information to the condominium association within 60 days after the election of the board. If it does not do so, the condominium association should send a demand letter requesting the documents, including: 

• All original documents such as bylaws, articles of incorporation, contracts, and other agreements

• An accounting of the association funds, together with the actual funds

• List of all litigation and other pending legal disputes

• List of all property, insurance policies, and tax bills belonging to the association

• Copies of all warranties and specifications of materials

Hire Important Roles

One of the first steps the board of a condominium association should take is to hire for the following roles:

Attorney

A competent and knowledgeable condominium association attorney will ensure that the board complies with relevant law and handles any legal issues that may come up during the turnover and beyond.

Accountant

An accountant should review the accounting of the association while it was under developer control, ensure there are enough reserves, and review financial records to confirm owners are current on all assessments.

Engineer

A professional engineer should inspect the premises for construction defects soon after turnover.

Management

Depending on the size of the condominium association, it may be necessary to hire management to address the day-to-day operation needs of the condominium association.

Contact a Cook County, IL Condominium Law Attorney

When a developer turns over development control to a condominium association, the experienced Arlington Heights, IL condominium law attorneys can guide the board through the process and ensure that the condominium association fulfills all its legal requirements. At Dickler, Kahn, Slowikowski & Zavell, Ltd., we have extensive experience representing condominium associations in all aspects of operations. Call our offices at 847-593-5595 for a professional consultation today.