Assisting the Interim Board with the Transition
The interim board, typically appointed by the developer, is responsible for governing the condominium corporation until a majority of units are sold and the first owner-elected board is in place.
Key Responsibilities of the Interim Board
Scheduling the turnover meeting within 90 days after the developer no longer owns the majority of units.
Preparing and transferring required documents to the new board.
Providing financial transparency, including budgets, reserve fund studies, and outstanding liabilities.
Ensuring compliance with the CPA and Condominium Property Regulation.
Role of the Condominium Manager in Supporting the Transition
Ensure all documents are ready before the turnover meeting.
Guide the interim board on CPA-mandated responsibilities.
Assist with organizing financial records and governing documents.
Facilitate a smooth communication process between the interim and elected boards.
Evaluating Compliance with CPA Transfer Requirements
The CPA outlines specific documentation and procedural requirements that the interim board must fulfill before handing over control to the elected board.
Key CPA Transfer Requirements
Requirement | Description |
Financial Reports | Includes budget statements, reserve fund balance, and financial statements. |
Reserve Fund Study | Ensures proper financial planning for long-term maintenance. |
Bylaws & Rules | Outlines governance structure and operational rules. |
Contracts & Agreements | Identifies service contracts for condominium management, maintenance, etc. |
Insurance Coverage | Ensures proper liability and property protection for the corporation. |
Requirement | Evaluation Criteria |
Financial Reports | Are all required financial records complete and up to date? |
Reserve Fund Study | Is the study current and aligned with CPA requirements? |
Bylaws & Rules | Are bylaws and any recent amendments included? |
Contracts & Agreements | Are all active contracts disclosed to the new board? |
Insurance Coverage | Is proof of insurance included in the transfer? |
If any of these requirements are not met, the condominium manager should advise the interim board on corrective actions before the turnover is finalized.
Creating a Step-by-Step Transition Checklist
A well-structured transition checklist ensures that the interim board meets all CPA requirements and that the elected board has all necessary information to effectively govern the condominium corporation.
Step-by-Step Turnover Checklist
Step 1: Confirm Turnover Meeting Date
Ensure the meeting is scheduled within 90 days of the developer losing majority ownership.
Notify all unit owners of the meeting date and agenda.
Step 2: Prepare Required Documents
Financial reports: Operating budget, reserve fund study, financial statements.
Legal & governance documents: Bylaws, rules, meeting minutes, condominium plan.
Operational records: Service contracts, insurance policies, ongoing maintenance reports.
Step 3: Conduct the Turnover Meeting
Present financial records and governing documents.
Introduce newly elected board members to condominium management service providers.
Address any outstanding legal or financial issues.
Step 4: Post-Meeting Follow-Up
Assist the elected board in understanding their governance responsibilities.
Ensure smooth transition of bank accounts, contracts, and vendor relationships.
Provide training or reference materials on CPA compliance requirements.
