When you buy a condo in a new development, you might hear the term “declarant control.” It plays a big role in how the community starts and grows. Understanding what declarant control means helps you know who is making the rules early on and when owners can expect to take over. This knowledge can help you make smarter decisions about buying and living in a condominium community.
What does declarant control mean?
Declarant control refers to the period when the developer, or “declarant,” manages the condo association. This means the developer decides how the community operates, maintains common areas, and enforces rules. During this time, the developer usually appoints the board members rather than having owners elect them. The main goal during this period is to protect the developer’s investment and vision for the community’s future.
How long does declarant control last?
State laws and the condo’s governing documents set the time limit for declarant control. It usually ends when a certain percentage of units sell, after a set number of years, or when the developer decides to transfer control. For example, New Hampshire laws often set benchmarks like selling 75% of units to trigger the turnover. Some developments may take longer depending on market conditions, which means owners could wait a few years before gaining full control.
What happens when control shifts?
Once the declarant control period ends, the owners elect the board members. The new board can review contracts the developer made and decide if changes are needed. Owners also gain full decision-making power over budgets, rules, and management. This transition is an important milestone because it gives owners more influence over how their money is spent and how their community is run.
Knowing about declarant control helps you plan your role in the community. While the developer controls the association, owners have less say in how things run. Understanding when control shifts lets you prepare to take a more active role in shaping the condo’s future. It also gives you a better sense of when you can push for improvements, budget adjustments, and rule changes that fit the needs of the residents.