Which provision addresses the transition of control from the developer to the owners?

Which provision addresses the transition of control from the developer to the owners?

• A. Declaration
• B. Bylaws
• C. Articles of incorporation
• D. Master deed

Answer: (A)

Turnover of control from the developer to the owners is addressed in the declaration because this document creates the community and sets how authority is allocated, including how the transition from the developer’s control to homeowners occurs. The declaration typically spells out when the transfer happens, how the first board is chosen, and the process by which voting rights and governance shift to the owners. Bylaws govern ongoing governance and procedures once control has shifted, while articles of incorporation establish the legal corporate form but don’t specify how the turnover occurs. The master deed is a related instrument used in some jurisdictions, but the declaration is the standard place for the transition provisions.

Turnover of control from the developer to the owners is addressed in the declaration because this document creates the community and sets how authority is allocated, including how the transition from the developer’s control to homeowners occurs. The declaration typically spells out when the transfer happens, how the first board is chosen, and the process by which voting rights and governance shift to the owners. Bylaws govern ongoing governance and procedures once control has shifted, while articles of incorporation establish the legal corporate form but don’t specify how the turnover occurs. The master deed is a related instrument used in some jurisdictions, but the declaration is the standard place for the transition provisions.