If you are a developer of a community in Miami, Florida, it is important for you to understand what the state’s statutes have to say regarding your transfer of the homeowners’ association to its members. The Florida State Legislature explains that these transitions are legal transactions that are governed by many regulations.
There are a number of events that may be the trigger for the transfer, and once one of these has occurred, the majority of the members of the board of directors can be elected by the members of the HOA. Ideally, you would retain control of the association until the end of the three months that follow the sale of 90 percent of the community’s tracts. However, as long as you own at least 5 percent of the tracts in the community, you may still elect at least one HOA board member.
The process of transferring control, you must turn all relevant information over to the members of the board of directors. This includes the following:
- Deeds to tangible and common property, and property contracts belonging to the HOA
- Articles of incorporation of the association
- HOA bylaws, policies, regulations, covenants and restrictions
- Minutes of all meetings relating to the association
- Financial records and control of HOA funds
When you hand over control, some of the directors you appointed must resign so the positions may be filled by community elected members. Control would also be transferred under other situations, such as if you file bankruptcy or abandon the property. This information is provided to give you an overview of HOA control transfer. It is for educational purposes only and should not be interpreted as legal advice.