Developer Turnover Accounting And Other Turnover Disputes

Developer turnover is a critical stage for condominium and homeowners associations. Rather than a single event, it is typically a process that involves transitioning control of the association — along with full operational responsibility — from the developer to the unit owners. The timing of the turnover process is typically tied to the percentage of units sold. These exact thresholds will depend on relevant governing documents.

Laying A Foundation For Success

A careful and calculated transition can lay the groundwork for the long-term success of the association. By contrast, a hasty or imprudent turnover can lead to significant challenges down the road. At Haber Slade, our goal is to assist clients in completing the transition as smoothly and seamlessly as possible. We represent unit owners as well as condominium and homeowners associations throughout South Florida.

Accounting And Audit Issues

Financial aspects of the turnover process are often ripe for disputes. Florida law requires developers to secure an independent financial audit during the turnover process. During or after the audit, questions may arise regarding:

  • The accuracy and thoroughness of the financial records
  • The establishment and proper funding of reserve accounts
  • The appropriateness of particular expenses or assessments incurred by the developer
  • The details of the association's budget, as established by the developer
  • Unit funding versus deficit funding
  • Whether expenditures were developer expenses wrongfully paid by the association

Unit owners have important rights regarding financial issues during the transition. It is critical to be aware of those rights, and to take the legal action required to preserve and enforce them. Identifying potential problems sooner rather than later can minimize the hassle, expense and delays associated with protracted litigation.

Our attorneys provide thorough and detailed guidance on the complex financial aspects of developer turnover. We assist associations with detecting and rectifying potential pitfalls. Our legal team routinely helps associations take advantage of the full rights, benefits and financial interests they are entitled to receive.

Other Turnover Disputes

Beyond financial matters, turnover disputes can involve a wide range of issues, including:

  • Construction or design defects
  • Procedural and notice requirements
  • Transfer of developer records, titles, insurance policies, plans, specifications and other property to the association

At Haber Slade, we represent associations in all types of turnover-related disputes.

Learn More

For more information, contact us online or by phone at 305.379.2400. Based in Miami, our lawyers handle developer turnover accounting and other turnover disputes throughout South Florida.

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