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