A unit owner recently brought an application to the court for an order declaring a notice of sale issued by a condominium under a lien null and void. The owner was also the condominium’s declarant. The declarant did not turn over the condominium to the owners when required by the Act or contribute to the common expenses for the units it still owned. Sound familiar?
Developers have several obligations post-registration of a condominium, such as appointing a board of directors and the auditor, collecting fees, obtaining insurance, and registering the proposed by-laws. There are other tasks, such as arranging for a reserve fund study, performance audit, or repairs/maintenance, that might arise depending upon how long the developer controls the first board.
The developer must also call a meeting of owners on the later of the 30th day after 20% of the units have been transferred and the 90th day after the developer has first transferred title to a unit. At the meeting, the owners (other than the developer) may elect two new directors. The meeting is not required if a majority of the units have been transferred and a meeting has been called to relinquish control to the owners (called the “turn-over meeting”). The turn-over meeting must be called within 21 days of the developer transferring a majority of the units and held within 21 days after it is called. Continue reading