Developer Responsibilities in the Transition Period
The developer is responsible for managing the condominium corporation until control is transferred to the interim board, which consists of unit owners. The Condominium Property Act (CPA) and Condominium Property Regulation require the developer to:
Appoint the first board of directors (interim board) within 30 days of registering the condominium plan.
Operate the condominium corporation in good faith until the first unit owners' meeting.
Maintain accurate financial records, including budgets, expenses, and contracts.
Required Documents for Board Turnover
Under the CPA and Condominium Property Regulation, a developer must provide the interim board with:
Financial Records – Operating budget, reserve fund contributions, and financial statements.
Legal and Governance Documents – Registered condominium plan, bylaws, rules, and disclosure statements.
Operational Reports – Service contracts, insurance policies, and any ongoing litigation information.
A smooth transition depends on the developer delivering all required documents promptly and ensuring the interim board understands their responsibilities.
Interim Board Responsibilities
Financial Management Obligations
The interim board must oversee all financial aspects of the condominium corporation, including:
Collecting fees from unit owners to fund maintenance and common expenses.
Reviewing financial records provided by the developer for accuracy.
Managing the reserve fund, ensuring it meets CPA requirements.
Legal & Compliance Responsibilities
Enforce condominium bylaws and rules until the elected board takes over.
Conduct the first annual general meeting (AGM) within CPA-specified timeframes.
Ensure proper insurance coverage for common property and board liability.
Operational Duties
Maintain common property, including repairs and service contracts.
Review developer agreements to ensure fair terms for owners.
Establish proper record-keeping practices for board meetings and decisions.
Interim board members must act in the best interest of the condominium corporation and ensure compliance with statutory obligations.
Evaluating Developer Compliance with CPA
Reviewing Developer Compliance
The interim board and condominium manager must verify that the developer has:
Provided complete financial statements and reserve fund reports.
Supplied all legal and governance documents required under the CPA.
Handed over accurate and up-to-date contracts and operational records.
Identifying Deficiencies & Taking Action
If the developer fails to meet obligations, the interim board can:
Request missing documents formally in writing.
Seek legal remedies if financial or governance records are incomplete.
Report non-compliance to the appropriate regulatory authorities.
Key Legal Requirement
According to the CPA, a condominium corporation must maintain a reserve fund for major repairs and replacement of common property. If the developer fails to set up the fund or provide financial documentation, the interim board must take corrective action.
