What are the developers financial obligations to the new Association?
Beginning with the first day of the month after the first closing and for every month thereafter, the developer is required to pay assessments for every unsold unit. Further, all Association funds, including the assessments paid by the developer, must be kept in a segregated account, separate from other funds of the developer. Within 60 days after the initial meeting of unit owners, the developer must turn over all Association funds and a detailed accounting of Association funds to the board of managers of the new Association. It is very important that the Treasurer of the new Association or an accountant employed by the Association carefully review the accounting, as it it is not uncommon for expenses which should have been absorbed by the developer to have been paid with Association funds or for all of the assessments due for unsold units to not have been paid.
