Florida Community Association Manager Practice Exam

Which statement is true regarding the developer's responsibilities in a condominium?

1. The developer has full management responsibilities regardless of Board control

2. The developer must meet all state regulations immediately

3. The developer is exempt from management responsibilities while controlling the Board

4. The developer must relinquish control after one year

The correct answer is: The developer is exempt from management responsibilities while controlling the Board

The statement regarding the developer's responsibilities in a condominium that is accurate is that the developer is exempt from management responsibilities while controlling the Board. This reflects the reality of how condominium associations operate during the development phase. When a condominium project is initiated, the developer typically has substantial control over the board and manages the condominium's affairs until a certain number of units are sold. During this time, the developer can manage the property without the usual obligations of a homeowner association, as the board largely operates under the developer's oversight. This allows the developer to ensure that the community is developed according to their vision and standards before transitioning control to the homeowners. Ultimately, control transitions after a number of units are sold or a specified timeframe, as outlined by the governing documents, at which point the developer must step back and allow the elected board of unit owners to assume managerial duties. This process is intended to protect the interests of the future residents while still giving developers some leeway in management during the initial phases of development.