HOA glossaryBoard & governance

What is turnover?

The handover of association control from the developer to a board elected by the owners, and the audit and record transfer that should accompany it.

Also called: Transition, Declarant control period

Turnover happens when the trigger in the declaration or the state act is met — commonly a percentage of lots conveyed, or a fixed number of years after the first conveyance, whichever comes first. At that point the members elect a board and the association becomes theirs to run.

The moment matters far beyond the election. This is when the association should receive the complete records, as-built plans, warranties, contracts, financial statements and the funds it is owed, and when any construction defect or funding shortfall becomes visible. Several states impose specific turnover obligations and timelines on the declarant.

Boards that treat turnover as a ceremony rather than an audit tend to discover the problems years later, sometimes after the window to raise them has closed.

Why it matters to a board

Commission an independent review of the records, reserves and common area condition at turnover. It is the last moment leverage exists.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Related terms

DeclarantThe developer who records the declaration and creates the association, holding special rights until control transfers to the owners.Board of directorsThe elected body that governs the association, holding all authority the governing documents grant to it and no more.Reserve studyA professional inventory of common area components with remaining life, replacement cost, and a funding plan that keeps the reserve solvent.AuditAn independent accountant's examination of the association's financial statements, at one of three levels of assurance.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
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