What are the responsibilities of the homeowners or condominium owners before the transition?
Before the developer transition, the condominium owners or the home owners have very little responsibility for the operation of the association. Once fifteen percent of the units have been sold in a condominium project, the condominium owners are entitled to elect one third of the board members. Those board members have a fiduciary duty to the members and obviously have very serious responsibilities. For everybody else, the primary responsibility is to pay your assessments. In a homeowners association, the representation is more limited. Once fifty percent of the units have been sold, the homeowners are entitled to elect one board member. Again, that one board member has a fiduciary duty to the members and has very serious responsibilities. For everybody else, the responsibilities are limited to paying their assessments.