Questions and Answers
What is the developer responsible for doing after registering a property?
Working directly with architects and construction companies
What is the developer required to do within 21 days of ceasing to be a majority shareholder?
Call a turnover meeting
What is the developer typically no longer involved in after the turnover process?
Condominium governance
Study Notes
- A developer is responsible for registering a declaration and description at the Land Registry Office, creating the plan and vision for the property.
- After registering the property, the developer, now legally referred to as the declarant, may work directly with architects, construction companies, or other third-party contractors to develop the land, or they could sell the opportunity to another party.
- Common examples of developers include corporations that develop commercial or residential properties.
- Once the declaration and description are registered, a corporation without share capital is created automatically under the Condominium Act.
- The declarant will then be responsible for appointing at least three members to the newly formed board of directors.
- During this period, the registered bylaws included in the declaration are valid until replaced or amended by future boards. Use restrictions are established initially by the declarant and modified by the condominium corporation, as needed.
- As units sell, the developer eventually ceases to be a majority shareholder; within 21 days of ceasing to be a majority shareholder, the developer must call a turnover meeting to turn control over to a newly elected board of directors.
- After this turnover process, the developer is typically no longer involved in condominium governance.
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