Florida Community Association Manager Practice Exam

How long does a developer have to pay members after turnover?

1. 1 year

2. 3 years

3. 5 years

4. Indefinite

The correct answer is: 5 years

The correct duration a developer has to pay members after turnover is five years. This timeline is tied to the legal obligations developers have regarding the financial responsibilities owed to community associations after the transition of control from the developer to the homeowners or members. The five-year period allows enough time to address any claims arising from the developer's past actions during the period when they were in control of the association. This timeframe is in place to ensure that community associations have the necessary time to recognize and pursue any financial or operational grievances that may have emerged before the turnover. The framework supporting this regulation helps reinforce accountability among developers, ensuring they fulfill their financial commitments to the newly formed associations. After this five-year period, the ability of members to reclaim funds or demand payments could be significantly limited, making it essential for associations to be vigilant and proactive during the transition period. Understanding this timeline is crucial for community association managers and members to ensure their rights and financial health are preserved.