Transition is the most critical period in the life of your Community Association.
Did you know that under New Jersey law, the unit owners in a Condominium are entitled to elect all but one of the seats on the Association's Board of Directors once the Developer has sold 75% of the units? This election, and the transfer of control of the Association from the Developer to the unit owners, is the first step in a process known as "Transition".
Transition consists of much more, however, than merely transferring control of the Board to the unit owners. Transition is the critical process by which the newly elected unit owner Board confirms that the Developer properly constructed the Condominium, accurately maintained the Association's finances, and honored its other commitments to the Association - and Transition also is the time when the Association assures that the Developer remedies any deficiencies in fulfilling those obligations. It is therefore crucial for the Association and its Board to be guided by experienced legal counsel throughout the many aspects of Transition.
At Buckalew Frizzell & Crevina, we have represented numerous condominium associations in all phases of Transition, and our considerable experience can be invaluable in guiding you through this important period.
So, what more then does Transition specifically involve? Transition involves a host of issues, including:
- Obtaining an independent engineering report to assure that the Condominium's common elements have been properly constructed
- Conducting an audit by an independent CPA to confirm that the Developer appropriately managed and accounted for all Association funds
- Negotiating with the Developer to resolve construction defects and financial deficiencies discovered by the Association's independent engineer and accountant
- Confirming with the Department of Environmental Protection that there are no outstanding environmental obligations affecting the Condominium
- Securing key documents from the Developer and Municipality, such as warranties, building plans, performance bonds and site plan approvals
- Notifying all unit owners of the division of responsibility between them and the Association so that they can protect their rights and seek the Developer's repair of construction defects
- Ensuring that the Association has obtained all insurance required by its governing documents
- Litigating with the Developer if negotiations fail to resolve the Association's claims
As you can see, Transition is a multi-faceted process. Indeed, Transition is a critical phase in your Association's life that can significantly impact the long-term financial health of your community, the value of your investment, and your enjoyment of your new home. At Buckalew Frizzell & Crevina, our fourteen attorneys possess the expertise and experience to navigate your Association through the maze of Transition and to fulfill all of your Association's legal needs.
If your Association's Board would like to attend our law firm's free seminar on Transition, which we would be pleased to give at your Association's premises, or if you have questions about Transition or any other legal issues affecting your community, please feel free to contact either Eric Frizzell, Donna Shahrabani or Mary Wynn Seiter by email or by phoning us at 201-612-5200.