Section 720.307 - Transition of association control in a community

3 Analyses of this statute by attorneys

  1. Legal Issues Associated With Selling & Purchasing Failed Residential Subdivisions In Florida

    Lowndes, Drosdick, Doster, Kantor & Reed, P.A.Gary KaleitaMarch 21, 2016

    This occurrence is commonly referred to as “transition of association control,” in that it allows the members other than the developer to control the HOA’s Board of Directors and thereby direct the activities of the HOA. What many people don’t know is that such a transition is also triggered by the occurrence of any one of the following events specified in Florida Statutes Section 720.307: (i) the developer abandons its responsibility to maintain and complete the infrastructure as specified in the governing documents, (ii) the developer files a bankruptcy petition, (iii) the developer loses title to its property through a foreclosure action or deed in lieu of foreclosure (unless the successor owner has accepted an assignment of developer rights and responsibilities), or (iv) a receiver for the developer is appointed and is not discharged within 30 days (unless the court determines that transfer of control would be detrimental to the association or its members). If one of these trigger events occurs, control of the HOA would pass to the HOA members other than the developer, who then have the right to elect a majority of the Board of Directors of the HOA.

  2. Acquiring Failed Subdivisions: The Risk of Tyrannical HOAs

    Lowndes, Drosdick, Doster, Kantor & Reed, P.A.Gary KaleitaSeptember 14, 2015

    This occurrence is commonly referred to as the “transition of association control,” in that it allows the homeowners other than the developer to control the HOA’s Board of Directors and thereby direct the activities of the HOA. What many people don’t know is that such a transition is also triggered by the occurrence of any one of the following events specified in Florida Statutes Section 720.307: (i) the developer abandons its responsibility to maintain and complete the infrastructure as specified in the governing documents, (ii) the developer files a bankruptcy petition, (iii) the developer loses title to its property through a foreclosure action or deed in lieu of foreclosure (unless the successor owner has accepted an assignment of developer rights and responsibilities), or (iv) a receiver for the developer is appointed and is not discharged within 30 days (unless the court determines that transfer of control would be detrimental to the association or its members). If one of these trigger events occurs, control of the HOA would pass to the members or parcel owners other than the developer, who then have the right to elect a majority of the Board of Directors of the HOA.

  3. Smooth Transitions: HOA Turnover Tips for Florida Developers

    LowndesGary KaleitaMay 29, 2024

    its land, identifying it as a subdivision containing residential lots. In addition to lots, this Plat typically includes tracts designated as common areas to be owned and/or maintained by the HOA.Concurrently with the platting process, the developer records a Declaration of Covenants, Conditions, Easements, and Restrictions (Declaration) among the public records. This Declaration establishes various title restrictions affecting the subdivision, including use restrictions, architectural controls, and an obligation for lot owners to pay assessments to cover the HOA’s operating expenses. Additionally, the Declaration establishes easements allowing lot owners to use the common areas.When the Association is formed and the Plat and Declaration are recorded, the developer owns all lots and is the only member of the HOA. As lots are sold, purchasers also become members.There are statutory thresholds specifying when lot purchasers have the right to appoint directors. This process, governed by Section 720.307, Florida Statutes, is known as the Turnover Statute. According to this statute, members other than the developer the right to elect at least one director of the HOA when 50% of the parcels in all phases of the community which will ultimately be operated by the HOA (including future unplatted phases), have been conveyed to members other than the developer. The term “members other than the developer” excludes “builders, contractors, or others who purchase a parcel for the purpose of constructing improvements thereon for resale.”Triggers for TurnoverMembers other than the developer are entitled to elect at least a majority of the HOA’s directors when the earliest of the following events occurs, a point commonly referred to as “turnover” of the HOA:3 months after 90% of the parcels in all phases of the community that will ultimately be operated by the HOA have been conveyed to members other than the developer;Such other percentage of the parcels has been conveyed to members, or such other date or event has