Essential Elements of a Turnover Meeting
A turnover meeting formalizes the transfer of governance from the interim board (developer-controlled) to the elected board (owner-controlled). It should cover:
Legal and Governance Transfer
Verification of the election process for the new board.
Handover of bylaws, condominium rules, and any amendments.
Financial and Budgetary Disclosure
Submission of financial statements, reserve fund studies, and budget reports.
Disclosure of any pending liabilities or unpaid contributions.
Operational Handover
Transfer of contracts with service providers and management companies.
Status updates on ongoing maintenance projects.
Owner and Unit Records
Handover of owner contact lists, meeting minutes, and voting records.
Disclosure of any ongoing disputes or legal matters.
A well-structured turnover meeting agenda should ensure these items are discussed and documented.
Time Limitation Requirements for Turnover Meetings
Under the Condominium Property Regulation, the turnover meeting must take place within 90 days after the developer no longer owns a majority of the units. The interim board is responsible for scheduling this meeting and providing the required documents.
Key Deadlines:
Financial Statements: Must be provided at the turnover meeting.
Reserve Fund Study: Required for condominium corporations that are at least two years old.
Contracts and Agreements: All active service contracts must be disclosed.
Applying CPA Regulations to Ensure Compliance
Step 1: Verify whether the developer still holds a majority of units.
Step 2: Confirm that the turnover meeting is scheduled within the 90-day deadline.
Step 3: Ensure the required documents are submitted before the meeting.
Step 4: Check for any missing information that could delay the transition.
Evaluating the Effectiveness of a Turnover Meeting Agenda
A turnover meeting agenda should cover all critical areas to ensure a smooth governance transition.
Agenda Item | Purpose |
Financial Reports | Ensure transparency in past expenditures and future obligations. |
Reserve Fund Study | Assess long-term financial planning for major repairs. |
Bylaws & Rules | Transfer governance documents to the new board. |
Contracts & Agreements | Identify ongoing service contracts and obligations. |
Legal & Compliance Issues | Address any pending disputes or regulatory concerns. |
Agenda Item | Evaluation Criteria |
Financial Reports | Are the financial records up-to-date and accurate? |
Reserve Fund Study | Does the reserve fund have adequate contributions? |
Bylaws & Rules | Are all governing documents included and updated? |
Contracts & Agreements | Are all service providers disclosed? Are there any long-term contracts that require review? |
Legal & Compliance Issues | Are there unresolved legal issues affecting the corporation? |
By evaluating the agenda against these criteria, condominium managers and board members can ensure that the turnover process is complete and compliant.
