What You Need To Know About Developer Turnover and Its Community Impact - m2e

What You Need To Know About Developer Turnover and Its Community Impact

  • Posted by: m2e Team
  • Category: Engineering Consulting
What You Need To Know About Developer Turnover and Its Community Impact

Developer turnover is common in housing development and condominium development. During the turnover process between developer and property owner, there must be inspections and reports to make sure everything goes according to plan, stays up to building code, and is proactive in property condition assessment. Our skilled team at m2e also helps consult with restoration services, building safety inspections, and 40-50 year recertification.

Our team of expert consultants assures that when a developer turns over the control of a property, it is received in quality condition, avoids future issues, and improves the community.

What is Developer Turnover?

Developer turnover is the transfer of property control and ownership between developers and property owners or homeowners. This process turns over property rules and codes, building regulations, and residential policies to organizations like a homeowners association or HOA. During this process, it is imperative to make sure the area is being turned over in a corrective manner, so the new owners aren’t left with problematic construction assets.

At What Point Does the Developer Turnover Process Begin and End?

The developer turnover process’ beginning and end date are directly correlated to the number of properties and/or units sold within the community, as well as the length of time after it is sold. Different states have different rules, but Florida law is the most common way: 90 days or within three months of 90% of the properties in the community are transferred to a new owner, or conveyed.

For example, if a developer owns a 500 home community and sells 450 homes, 90 days after that 450th closing date is when the turnover needs to happen. 

After that date, there is much to consider during the turnover process. Homeowners must elect the board majority for the Homeowners Association (HOA). The developer is allowed to elect one board member if at least five percent of the properties is up for sale.

It is encouraged for the board of directors with the HOA to be on the lookout for the closing date. The pre-turnover should keep track of this (see next section for more on pre-turnovers). Another way that the turnover date can be expressed is if the developer previously drafted it into the governing documents of the community, but this is not required. It is important for the community to check if there is already a date stated in the governing documents.

Other indicators for a turnover process could be developer bankruptcy or a seven-year update of the condo declaration.

What Happens During Developer Pre-Turnover?

Developer Pre-Turnover is when the community and the developer look at contracts, inspect, provide quality assurance, report, and file documents in regard to the turnover before the process occurs. Owners can put their request in writing and ask for all the governing documents for the community. Working through a Florida-based management company or engineering consulting agency like m2e can help be the middleman between community and developer. Forming an ad hoc committee, such as an advisory committee, could benefit the process with input. 

The most important thing is for each party to understand their stake in the game and how much power they hold in the process. If lawsuits need to be filed, that could be an option before or after the turnover happens.

During this time, a community and developer can create contracts with each other for a smoother process. 

Condominium Services

If non-developer owners make up 75% of the property, they have the ability to cancel any contracts, lease, or other legal documents submitted by the developer in the name of the association. This guides the association’s operation, management, or maintenance.

If cancellation happens, the association must come up with a new contract, or provide operation, maintenance, and management services to replace what they cancelled. This responsibility falls under the non-developer majority’s discretion.


Homeowner Associations have to abide by a different set of rules and regulations. They do not have the ability to cancel any contracts prior to turnover, however, there is a chance for them to benefit from assistance if they feel these contracts, grants, or reservations are unfair and unreasonable.

Why is Developer Turnover So Important for a Florida HOA?

A developer turnover is so important for HOAs in Florida because the owners of the individual properties are finally going to have control over their own community. The developer must give all items and documents over to the HOA. These can include:

  • Financial health of the property: bank statements, tax returns, budgeting forms, personal properties allotted to the association
  • Construction plans/designs: this should be as specific as the contacts for the construction companies and contractors
  • Insurance policies, financial audits, permits
  • Inspection reports: These must be signed off by an architect or engineer
  • Articles and bylaws of the community
  • Engineering report: required for condominiums, but not for HOA’s
  • Property inspections

As previously stated, this is also an exciting time for the HOA board to be elected by the homeowners.

How is the Turnover Process Confirmed?

The turnover process is confirmed when the association has received all documents given by the developer, all property and financial inspections are complete, and a date is confirmed to follow-up for a turnover meeting between the HOA board of directors.

How m2e Can Help

m2e strives for excellence in expert services regarding investigation and reporting for the turnover process in Florida. We help you cut costs on critical infrastructure conditions, and we make sure the process runs smoothly with our highly trusted team of experts.

We help serve developers with the items needed to complete their developmental services on time and in the most affordable way possible.

We also serve on local Florida condominium boards and associations. We have license and insured engineers on our knowledgeable staff that assist in preventative measures for maintenance plans and turnover plans.

Whether you are a part of an HOA or a condominium board, our award-winning team does what they can to create a great developer turnover experience. We facilitate reports and safety inspections, and we conduct reserve studies and property conditions assessments.

Developer turnovers are not just a huge transition, but they are also complex. m2e can help you understand your power in ownership and/or a breakdown of how your community’s involvement might be impacted. For more information, contact m2e today and/or call our phone number: (305) 440-4573. We are a phone call away from helping you with a long term investment.

Author: m2e Team