A Georgia condominium developer has sold 85% of the units in a 200-unit project and is preparing to transition control of the association to the unit owners. Under the Georgia Condominium Act, which of the following most accurately describes the legal requirements and implications of this declarant-to-owner turnover process?
Correct Answer
A) The declarant must transfer governance control, deliver all association records and financial accounts, and ensure common elements are in the condition required by the declaration, because the developer's fiduciary role during the control period differs fundamentally from the owner-elected board's ongoing governance responsibilities.
Under the Georgia Condominium Act (O.C.G.A. § 44-3-100 et seq.), the declarant-to-owner turnover is one of the most consequential events in a condominium's lifecycle. During the declarant control period, the developer typically appoints the board and makes governance decisions, but this authority is temporary and carries fiduciary obligations. Upon turnover — triggered by sale thresholds or time limits specified in the declaration and statute — the declarant must transfer governance to an owner-elected board, deliver all financial records, reserve funds, insurance policies, contracts, and association documents, and ensure common elements conform to the declaration's requirements. This transition matters because the developer's interests (selling units, controlling costs) often differ from long-term owners' interests (maintaining property values, adequate reserves). The Act's turnover provisions protect purchasers by ensuring a clean, accountable transfer of control and resources.
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A buyer is purchasing a condominium unit in Georgia and asks their agent why the condominium association's operations matter to individual unit owners. Which statement best describes the relationship between the association and individual condominium owners under Georgia law?
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