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What is the period of declarant control?

On Behalf of | Jan 14, 2025 | Firm News

The period of declarant control starts when the developer creates the community and ends when they turn over the control to the homeowners. During this time, the developer has significant control over how the community operates and makes decisions.

This period plays a crucial role in shaping the community’s future. It lets the developer build a solid foundation before giving control to the residents. However, laws prevent developers from keeping control for too long, protecting homeowners who have invested in the community.

Defining declarants and their development rights

The “declarant” is usually the developer, but it can be any person or group who sells units or has special rights in the declaration. They have certain “development rights,” including the right to:

  • Add new property
  • Create new units, common elements (like parks or clubhouses) or limited common elements (such as assigned parking spaces)
  • Subdivide units or convert them into common elements
  • Withdraw property from the community

The community’s main document, the “declaration,” must clearly explain these rights. During the period of declarant control, the developer can also choose HOA board members, make community budgets and set rules and regulations.

How long does the period of declarant control last?

The length of the period can vary, but Connecticut law provides some limits. It should end:

  • 60 days after 60% of the units are sold to homeowners
  • Two years after the developer stops offering units for sale
  • Two years after any right to add new units was last exercised
  • When the developer voluntarily surrenders control by legally documenting their decision

It’s important to note that while the declaration might set a shorter period, it can’t make it longer than these legal limits. Moreover, once developers sell one-third of the units, homeowners must have elected at least one-third of the HOA board members. This ensures that homeowners have a voice in decisions even while the developer maintains overall control.

Navigating the transition period

After the period of declarant control ends, the community enters a transition phase. This is when control of the HOA shifts from the developer to the homeowners. During this transition, the developer must hand over all community records and financial information. Ensuring a smooth and complete transfer of these documents can be difficult, so it’s wise to work with an attorney during this process.