Board transitions are when things get lost: bank access, vendor contracts, warranty deadlines, the history behind a decision. A good transition keeps the association running without a hiccup. A bad one can cost money for years.
There are two kinds of transitions. The first — the handoff from the developer to the first owner-elected board — happens once and has specific legal requirements. The second — new members joining after an annual election — happens every year. Both deserve a plan. This guide covers each in detail, with checklists you can use.
Part 1: Taking over from the developer
When the owners take control
Until owners elect a board with a majority of non-developer owners, the developer holds the board's powers (Section 18.2(a) of the Illinois Condominium Property Act). The election of the first owner board must be held no later than 60 days after the developer has conveyed 75% of the units, or three years after the declaration was recorded, whichever comes first. The developer must give at least 21 days' notice of that meeting.
If the developer doesn't call the meeting on time, owners holding 20% of the interest in the association can petition and call the meeting themselves.
Getting ready before the election
Owners who expect to serve on the first board can prepare before turnover:
Get to know other owners who may be willing to serve.
Ask the developer for the current budget, financial statements and a list of contracts.
Identify an attorney and, if possible, a management company experienced with developer transitions.
Start a list of construction concerns owners have noticed — leaks, cracks, mechanical problems, common-area issues.
What the developer must hand over
Within 60 days after the first owner board is elected, the developer must deliver (Section 18.2(d)):
1. All original documents — the declaration, bylaws, articles of incorporation, other condominium instruments, annual reports, minutes, rules, and all contracts, leases and agreements of the association.
2. A detailed accounting of receipts and expenditures during the developer's management, copies of all insurance policies, and a list of outstanding loans or advances to the association.
3. Association funds, which must have been kept separate from the developer's own money.
4. A schedule of association property, equipment and fixtures, with warranties, deeds, title policies and tax bills.
5. Litigation and government records — lawsuits, arbitrations, government notices, approved engineering and architectural drawings, permits and certificates, and documents about owner disputes.
If the developer doesn't deliver within 60 days, and then doesn't comply within 10 days of a written demand sent by certified or registered mail, the board can sue to compel delivery and recover reasonable attorney fees from the end of that 10-day period.
Create a turnover inventory
As documents arrive, log each item against the statutory list and note anything missing. A simple spreadsheet with columns for the item, date received, and follow-up needed makes it easy to send a precise written demand if items are missing.
Review the developer's finances
Many new boards have a CPA review the developer-period accounting. Questions to answer include:
Were assessments charged on developer-owned units, as the declaration requires?
Were association funds kept separate, and do bank balances match the accounting?
Was anything paid from association funds that should have been the developer's cost?
Are there loans or advances from the developer, and on what terms?
Was the budget realistic, or were assessments kept artificially low during sales?
An unrealistically low developer budget is a common problem. The new board may need to adjust assessments and reserves to reflect the building's true costs.
Reviewing developer-era contracts
Contracts signed before the first owner board — by the developer or on the association's behalf — that run more than two years past the election can be cancelled by a majority vote of the non-developer owners at a special meeting during the 180 days after the election (Section 18.2(e)). The board must notify owners of this right at least 60 days before the 180-day window closes, listing the affected contracts. Management agreements, service contracts and equipment leases are common candidates for review.
Protect potential claims
The statute of limitations on claims the association may bring doesn't begin to run until owners have elected a majority of the board (Section 18.2(f)). Once the owner board is in place, the clock is running. Many new boards commission a transition study by an engineer to identify construction defects while warranty and legal options remain open.
What a transition study covers
A transition study is an independent inspection of the building compared against the approved plans, building codes and industry standards. It typically looks at:
Roofing, flashing and drainage
Exterior walls, masonry, sealants and windows
Balconies, railings and waterproofing
Parking structures and garage waterproofing
Mechanical, electrical and plumbing systems
Fire and life-safety systems
Elevators
Site drainage, paving and landscaping
Accessibility features
The engineer's report becomes the basis for warranty claims or discussions with the developer, and it doubles as a starting point for the association's first reserve study.
Track warranties
Collect every manufacturer and contractor warranty — roofing, windows, mechanical equipment, elevators, appliances in common areas — and log the expiration dates. Some warranties require the association to perform maintenance or register the product to keep the warranty valid. Missing a deadline can mean losing coverage.
The first owner board's first 90 days
Days 1–7: Elect officers; take control of bank accounts; confirm insurance is in force and adequate; change locks, codes and system passwords as needed.
Days 7–30: Hire or confirm management and legal counsel; begin logging turnover documents; send a written demand for missing items after 60 days if necessary.
Days 30–60: Commission the transition study; engage a CPA to review developer-period finances; review all contracts for the 180-day cancellation right.
Days 60–90: Commission or update the reserve study; review the budget; plan owner communications about findings and next steps.
Part 2: Onboarding new board members after an election
Annual transitions are less formal, but they matter just as much.
Within the first week
Update bank signatories and online access. Remove departing members; add new ones as the board decides.
Update the management company with new contact information and officer roles.
Elect officers. The bylaws must provide for a president, secretary and treasurer chosen from the board.
Transfer records. Departing members should return all association documents, files, keys and passwords.
Within the first month
Orientation meeting with the manager covering the budget, reserve study, open projects, vendor contracts, pending violations, collections and any litigation.
Governing documents. Every new member should read the declaration, bylaws and rules, and get an overview of the Condominium Property Act.
Fiduciary duty and conflicts. Explain the duty to act as a fiduciary of the owners, and have each member disclose any potential conflicts.
Confidentiality. Clarify what's discussed in closed session and why.
Insurance. Confirm D&O coverage and review the fidelity bond.
Within the first quarter
Walk the building with the manager or building engineer, including mechanical rooms, the roof and the garage.
Meet key vendors for major systems, such as elevators and HVAC.
Attend a full budget or financial review with the treasurer.
Consider a mentor. Pairing each new member with an experienced one speeds up learning.
New board member information packet
Declaration, bylaws, rules and any amendments
Current budget and latest financial statements
Most recent reserve study
List of vendor contracts with renewal dates
Insurance summary and renewal date
Collection policy and delinquency report
Minutes from the past 12 months
Calendar of key dates: budget season, annual meeting, insurance renewal, required notices
Board code of conduct and conflict-of-interest disclosure form
Contact list for the manager, attorney, CPA, insurance broker and key vendors
A summary of open projects, pending decisions and recent owner issues
Offboarding departing board members
A clean exit is just as important as a good start. When a board member leaves:
Remove bank signing authority and online banking access promptly.
Collect keys, fobs and access cards issued for board purposes.
Change shared passwords for association email, portals, social media and vendor accounts.
Collect association records kept at home or on personal devices.
Update the management company, vendors and the association's website with current contacts.
Thank them. A short note or recognition at the annual meeting encourages others to serve.
Keep institutional knowledge in the association, not in people
The best protection against a rough transition is keeping information in the association's systems rather than in one person's head or inbox:
Use association email accounts for board business, rather than personal email.
Store documents in a shared, organized repository managed by the association or its manager.
Record the reasoning behind decisions in the minutes, so future boards understand why something was done.
Maintain a list of every account and login the association uses, with who has access.
Keep an annual calendar of recurring deadlines.
Common transition mistakes
Waiting months to change bank signatories.
Letting developer-era contracts auto-renew without review during the 180-day window.
Skipping the transition study to save money, then discovering defects after options have narrowed.
Missing warranty registration or maintenance requirements.
Relying on a departing board member's memory instead of written records.
Leaving passwords unchanged after a board member leaves.
Frequently asked questions
When must the developer turn over control?
The first owner board must be elected no later than 60 days after 75% of units are conveyed, or three years after the declaration was recorded, whichever comes first.
What if the developer won't hand over documents?
After the 60-day deadline, send a written demand by certified or registered mail. If the developer doesn't comply within 10 days, the board can sue to compel delivery and recover reasonable attorney fees.
Can we cancel the developer's management contract?
Contracts that extend more than two years past the election may be cancelled by a majority vote of non-developer owners at a special meeting within 180 days of the election.
Do new board members need training?
Check current Illinois requirements and your bylaws. Even where training isn't required, an orientation and a review of the governing documents are strongly recommended.
The bottom line
A developer handoff is a legal process with firm deadlines, and owners who know their rights can protect the association from day one. Annual transitions are simpler, but a consistent onboarding and offboarding routine — and records that live in the association's systems — keeps the board effective no matter who's elected.
Related reading:
Running a Condo Board Election in Illinois: Ballots, Proxies, Quorum and Deadlines
Fiduciary Duty for Illinois Condo Board Members: What It Means and How to Protect Yourself
How Much Should an Illinois Condo Association Keep in Reserves?
How to Read Your Condo Association's Financial Statements (Without a Finance Background)
Pimmit Run Management manages developer turnovers and annual board transitions for Illinois condo associations, including records transfer, bank access and new member orientation. Contact us to learn more.
This article is general information, not legal advice. Developer turnover involves time-sensitive legal rights; consult your association's attorney.
This article is general information, not legal advice. Consult your association's attorney about your specific situation.