Florida HOA Developer Turnover: When and How Control Transfers from Developer to Homeowners

Key Takeaways

• Members other than the developer are entitled to elect a majority of the HOA board when the earliest of six statutory triggers occurs — whichever happens first controls. See Section 720.307(1), Fla. Stat.
• The standard trigger is three months after 90 percent of parcels in all phases have been conveyed to members other than the developer. See Section 720.307(1)(a), Fla. Stat.
• When 50 percent of parcels are conveyed, homeowners are immediately entitled to elect at least one board seat, even if majority control has not yet transferred. See Section 720.307(2), Fla. Stat.
• The developer retains the right to elect at least one board seat as long as it holds 5 percent or more of parcels for sale in the ordinary course of business. See Section 720.307(3), Fla. Stat.
• Within 90 days of the majority-control trigger, the developer must deliver a comprehensive set of association records to the new board — including a mandatory independent CPA audit for associations incorporated after December 31, 2007. See Section 720.307(4) and (4)(t), Fla. Stat.

In This Article

• Short Answer
• How Florida Law Handles This Issue
• Key Legal Rules
• Comparison Table: The Six Majority-Control Triggers Under Section 720.307(1)
• How This Issue Typically Comes Up
• Common Mistakes Associations Make
• What Associations Typically Argue — and Why It Fails
• How the Statute Resolves This
• Edge Cases and Nuances
• What Homeowners Should Do
• When Legal Action May Be Necessary
• Actionable Summary Table
• Related Knowledge — Cross-Chapter Linking
• FAQ
• Key Terms Defined
• Conclusion
• About the Author
• Call to Action
• Disclaimer
• Sources

Short Answer

Florida law entitles members of a homeowners’ association to elect a majority of the board of directors when the earliest of six statutory events occurs. See Section 720.307(1), Fla. Stat. The most common trigger is three months after 90 percent of parcels in all phases of the community have been conveyed to members other than the developer. See Section 720.307(1)(a), Fla. Stat. Once that trigger fires, the developer must — within 90 days — deliver a comprehensive list of association records to the new board, including an independent CPA audit for associations incorporated after December 31, 2007. See Section 720.307(4)(t), Fla. Stat. A developer who refuses to relinquish control after the trigger occurs is in violation of Chapter 720, and homeowners have statutory remedies to compel the transfer.

How Florida Law Handles This Issue

Florida’s Homeowners’ Association Act, Chapter 720, Florida Statutes, includes rules that limit how long a developer can keep control of an association and that are intended to move governance to homeowners once the community is substantially sold. The Legislature recognized that when a developer controls the board, the board may manage the community in ways that serve the developer’s sales interests rather than the homeowners’ long-term interests — deferring maintenance, underfunding reserves, executing developer-favorable service contracts, and delaying the enforcement of standards that might burden unsold lots.

Section 720.307 is the statute that sets limits on developer control and provides that, once certain legal thresholds are reached, homeowners are entitled by law to elect a majority of the board and replace developer‑appointed directors through the election process. The statute does not require the developer’s consent and does not allow the developer to delay the point at which owners are legally entitled to elect a majority of the board, but owners still must hold and conduct a proper election under the governing documents to seat that new homeowner‑elected majority.

Section 720.307(1), Florida Statutes provides:

Members other than the developer are entitled to elect at least a majority of the members of the board of directors of the homeowners’ association when the earlier of the following events occurs:(a) Three months after 90 percent of the parcels in all phases of the community that will ultimately be operated by the homeowners’ association have been conveyed to members other than the developer;(b) Such other percentage of the parcels has been conveyed to members, or such other date or event has occurred, as is set forth in the governing documents in order to comply with the requirements of any governmentally chartered entity with regard to the mortgage financing of parcels;(c) Upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the governing documents. There is a rebuttable presumption that the developer has abandoned and deserted the property if the developer has unpaid assessments or guaranteed amounts under s. 720.308 for a period of more than 2 years;(d) Upon the developer filing a petition seeking protection under chapter 7 of the federal Bankruptcy Code;(e) Upon the developer losing title to the property through a foreclosure action or the transfer of a deed in lieu of foreclosure, unless the successor owner has accepted an assignment of developer rights and responsibilities first arising after the date of such assignment; or(f) Upon a receiver for the developer being appointed by a circuit court and not being discharged within 30 days after such appointment, unless the court determines within 30 days after such appointment that transfer of control would be detrimental to the association or its members.

The statute uses an ‘earlier of’ rule: when the first of six listed events happens, homeowners become legally entitled to elect a majority of the board, and developer majority control should end once that election is properly held. In most Florida communities — from large master-planned subdivisions in Miami-Dade to single-phase HOA neighborhoods in the Tampa area — trigger (a) governs: three months after the 90 percent conveyance threshold. A Gainesville, FL HOA lawyer can help homeowners determine whether developer control has legally ended, enforce the statutory transition process, and protect owners’ rights to elect a homeowner controlled board under Florida’s Homeowners’ Association Act.

Key Legal Rules

Six Independent Triggers — Section 720.307(1)(a)-(f)

Each of the six triggers in Section 720.307(1) operates independently. The developer does not get to cherry-pick which trigger applies; any one of the six, if satisfied first, transfers the majority-control entitlement. Trigger (a) — the 90 percent conveyance standard — is the most common pathway in ordinary residential communities where the developer sells lots in the normal course of business. Triggers (c) through (f) serve as safety valves for communities where the developer has abandoned the project, entered bankruptcy, lost the property through foreclosure, or had a receiver appointed.

The 50% Trigger for One Homeowner Seat — Section 720.307(2)

Florida law provides an interim protection before full majority control transfers. Section 720.307(2), Florida Statutes provides:

Members other than the developer are entitled to elect at least one member of the board of directors of the homeowners’ association if 50 percent of the parcels in all phases of the community which will ultimately be operated by the association have been conveyed to members other than the developer.

This means that once half the community has been sold, homeowners have the right to at least one representative on the board. That seat gives homeowners an inside view of association governance — access to books and records, the ability to make motions, and a voice in board decisions — even while the developer still controls the majority.

Developer’s Retained Minority Seat — Section 720.307(3)

Even after majority control transfers to homeowners, the developer retains a minority voice. Section 720.307(3), Florida Statutes provides:

The developer is entitled to elect at least one member of the board of directors of the homeowners’ association as long as the developer holds for sale in the ordinary course of business at least 5 percent of the parcels in all phases of the community.

The developer’s retained seat exists to protect its interest as a continuing parcel owner and seller. However, the retained seat does not give the developer control over board decisions once the majority has transferred — the developer-elected director is one vote among several member-elected directors. Notably, the statute covers only parcels held for sale in the ordinary course of business; parcels held by builders, contractors, or others for resale who are not the developer are not counted in this calculation.

90-Day Document Turnover — Section 720.307(4)

Once the majority-control trigger fires, the developer’s document-delivery obligation begins. Section 720.307(4), Florida Statutes provides:

At the time the members are entitled to elect at least a majority of the board of directors of the homeowners’ association, the developer shall, at the developer’s expense, within no more than 90 days deliver the following documents to the board:(a) All deeds to common property owned by the association.(b) The original of the association’s declarations of covenants and restrictions.(c) A certified copy of the articles of incorporation of the association.(d) A copy of the bylaws.(e) The minute books, including all minutes.(f) The books and records of the association.

The statute lists at least 21 categories of records (subsections (a) through at least (t)) that the developer must deliver. The 90-day deadline is mandatory and runs from the date the majority-control entitlement arises — not from the date of the actual election or the first member-majority board meeting.

Mandatory CPA Audit — Section 720.307(4)(t)

Among the most consequential obligations in the turnover package is the audit requirement. Section 720.307(4)(t), Florida Statutes provides:

The financial records, including financial statements of the association, and source documents from the incorporation of the association through the date of turnover. The records shall be audited by an independent certified public accountant for the period from the incorporation of the association or from the period covered by the last audit, if an audit has been performed for each fiscal year since incorporation. All financial statements shall be prepared in accordance with generally accepted accounting principles and shall be audited in accordance with generally accepted auditing standards, as prescribed by the Board of Accountancy, pursuant to chapter 473.

The independent CPA audit requirement in Section 720.307(4)(t) applies to associations incorporated after December 31, 2007, except for certain communities that the statute specifically exempts, such as some older or development‑of‑regional‑impact HOAs. The audit must be conducted by an independent CPA and must follow GAAS — meaning the association receives a professionally prepared opinion on the financial health of the entity it is inheriting. If a developer turns over financial statements that are not accompanied by the audit described in Section 720.307(4)(t), that package does not meet the statute’s audit requirement, even if the unaudited numbers themselves appear detailed or complete.

Comparison Table: The Six Majority-Control Triggers Under Section 720.307(1)

Trigger	Event That Causes Transfer	Statute
(a) — Standard conveyance trigger	Three months after 90% of all-phase parcels conveyed to non-developer members	Section 720.307(1)(a)
(b) — Governing document / government-lender trigger	Alternative percentage or date set forth in governing documents to satisfy mortgage-financing requirements of a governmentally chartered entity	Section 720.307(1)(b)
(c) — Abandonment / desertion trigger	Developer abandons responsibility for amenities/infrastructure; rebuttable presumption arises if unpaid assessments or guaranteed amounts under s. 720.308 exceed 2 years	Section 720.307(1)(c)
(d) — Bankruptcy trigger	Developer files Chapter 7 federal bankruptcy petition	Section 720.307(1)(d)
(e) — Foreclosure / deed-in-lieu trigger	Developer loses title through foreclosure or deed-in-lieu, unless successor accepts assignment of developer rights and responsibilities	Section 720.307(1)(e)
(f) — Receivership trigger	Circuit court appoints a receiver for the developer and receiver is not discharged within 30 days, unless court finds transfer would be detrimental within 30 days	Section 720.307(1)(f)

How This Issue Typically Comes Up

Developer-turnover disputes arise in recognizable patterns across Florida’s residential communities. In a Miami-Dade community where 95 percent of parcels were conveyed more than four months before homeowners sought the transition, the 90 percent conveyance threshold had been crossed and three months had elapsed, satisfying trigger (a) under Section 720.307(1)(a). The developer had not called a transition election. Under the statute, homeowners’ entitlement to majority control had already vested by operation of law — the developer’s failure to convene an election did not pause or reset the transition timeline.

In Tampa-area communities, another pattern involves trigger (c): the abandonment and desertion presumption. A developer who has not paid assessments or guaranteed amounts under Section 720.308 for more than two years is presumed by statute to have abandoned its responsibilities. That presumption is rebuttable — the developer can offer evidence that it has been actively maintaining and completing the amenities or infrastructure — but the burden shifts. Homeowners do not need to prove abandonment; they need to show the 2-year non-payment, and the developer must then disprove abandonment.

In Orlando communities, the document-turnover clock creates a separate dispute. Even where the developer cooperates with the transition election, developers sometimes deliver the turnover package 120 or 130 days after the majority-control trigger — well past the 90-day deadline in Section 720.307(4). A late delivery violates the statute and may support a claim by the association’s new board for the costs of reconstructing or obtaining records that the developer should have delivered on time.

In Broward communities, the CPA audit obligation generates disputes when the developer delivers an unaudited financial package. Section 720.307(4)(t) is explicit: the financial records must be audited by an independent CPA in accordance with GAAS. An unaudited package is a deficient delivery, and the new board is not required to accept it as full compliance with the turnover obligation.

Common Mistakes Associations Make

• Treating the 90 percent conveyance calculation as a one-phase calculation when the community is a multi-phase development — Section 720.307(1)(a) applies to all phases that will ultimately be operated by the association, not just the first recorded phase.
• Accepting an unaudited financial package from the developer as satisfying Section 720.307(4)(t) — the statute requires an independent CPA audit under GAAS; a compilation or review does not meet this standard.
• Failing to press for the full 21-category document turnover list within the 90-day window — after 90 days, developers sometimes claim that records no longer exist or that the obligation has been satisfied by partial delivery.
• Developers sometimes argue that lots sold to builders or contractors should still be treated as developer‑held for the 90 percent calculation, but Section 720.307(1) specifies that ‘members other than the developer’ does not include builders or contractors who buy parcels to build and resell homes, so those parcels are not treated as developer‑owned for this threshold and may count toward turnover depending on how your documents and deed history apply the statute.
• Ignoring the 50 percent trigger in Section 720.307(2) — homeowners are entitled to at least one board seat once half the parcels are conveyed, and that seat should be used to monitor association governance during the remaining developer-control period.

What Associations Typically Argue — and Why It Fails

Developers in control of an association board most commonly argue that the 90 percent threshold has not yet been met because certain parcels transferred to builders, affiliates, or investors should be counted as developer-held parcels. This argument fails when those parties hold the parcels for resale or in the ordinary course of a sales business unrelated to the developer’s development role. Section 720.307’s structure is designed to count homeowners — members other than the developer — against the threshold. Once a parcel has been conveyed to a person or entity that is not the developer, that parcel counts toward the 90 percent unless the governing documents or statute specifically exclude it.

Developers also argue that the transition triggers in Section 720.307(1)(c) through (f) — particularly the abandonment trigger — require the association or homeowners to formally prove intent to abandon, rather than simply showing unpaid assessments for two years. This argument misreads the statute. Section 720.307(1)(c) creates a rebuttable presumption of abandonment upon 2-plus years of unpaid assessments or guaranteed amounts under Section 720.308. The presumption shifts the burden; the developer must rebut it with affirmative evidence that it has continued to maintain and complete the amenities as disclosed.

A third argument is that the 90-day turnover deadline in Section 720.307(4) runs from the date of the first homeowner-majority board meeting, rather than from the date the statutory trigger fires. This argument is inconsistent with the statute’s text, which measures the obligation from the time members are entitled to elect a majority — a right that exists by statute upon the trigger, not upon the convening of the new board. Florida law requires the developer to begin assembling and delivering the turnover package from the moment the trigger fires.

How the Statute Resolves This

Section 720.307 resolves developer-turnover disputes through a layered framework that operates automatically. At the threshold stage, the statute identifies six independent triggers — any one of which, when satisfied, vests the majority-control entitlement in the membership without requiring any action by the developer. A developer cannot use the governing documents to push turnover later than the protections in Section 720.307 allow, although the statute does permit certain alternative percentages or dates in the documents when needed to satisfy government‑backed mortgage‑financing requirements. The right to majority board representation is a statutory entitlement, not a contractual gift from the developer.

At the pre-majority stage, Section 720.307(2) ensures homeowners have at least one representative on the board from the point at which half the parcels have been conveyed. This prevents a community from being fully settled before homeowners have any governance voice at all.

At the post-trigger stage, Section 720.307(4) imposes the developer’s 90-day document-delivery obligation — at the developer’s expense. The statute lists specific categories of records, culminating in the GAAS-compliant CPA audit under (4)(t). Even after the turnover trigger occurs and until the new board is fully seated, the developer remains subject to its statutory assessment obligations and to general duties under Florida law, and it should not use association funds or long‑term contracts in a way that unfairly benefits itself at homeowners’ expense during that transition period.

Edge Cases and Nuances

The phrase ‘members other than the developer’ in Section 720.307 has a specific meaning that affects both the conveyance calculation and the developer’s retained rights. Builders or contractors who hold parcels for resale — without being the original developer of the community — are generally excluded from the developer category, which means their parcels count as ‘conveyed to members other than the developer’ for threshold calculation purposes. This distinction is particularly important in large master-planned communities where individual builders purchase lots in bulk and build on them independently.

The rebuttable-presumption trigger in Section 720.307(1)(c) does not require a formal finding of abandonment by a court or administrative body. The presumption arises by operation of statute when the developer carries unpaid assessments or guaranteed amounts under Section 720.308 for more than two years. A homeowner or the association’s incoming board can assert the presumption as a basis for transition without first obtaining a judicial order — the trigger operates by law, and the developer must then rebut it.

Multi-phase communities present a nuance in the Section 720.307(1)(a) calculation. The statute applies the 90 percent threshold to ‘all phases of the community that will ultimately be operated by the homeowners’ association.’ This means a developer cannot avoid the trigger by completing one phase at 95 percent conveyance while keeping a second phase at 20 percent, if the ultimate community plan shows that both phases will be operated by the same HOA. The calculation is community-wide, not phase-specific.

The construction defect statute of limitations — under Chapter 95, Fla. Stat. — may run from the date of owner control transfer in certain scenarios, making the precise date of transition a critical fact in communities with significant latent construction defects. Communities with deferred infrastructure, failing drainage systems, or structural issues in common areas should commission an independent engineering assessment at or near the transition date to document the condition of the community at the time of turnover.

What Homeowners Should Do

• Monitor the conveyance count. Request a copy of the most recent community plat and maintain a running tally of recorded deeds as lots are sold. When the community approaches 90 percent conveyance, calculate whether three months have elapsed since that threshold was crossed.
• Establish a transition committee. Homeowners in communities approaching the transition threshold should form an informal transition committee to organize the election process, communicate with the developer, and review the turnover package when delivered.
• Demand the full turnover package in writing on day one of the 90-day period. A written demand citing Section 720.307(4) by category puts the developer on notice that deficient delivery will be treated as noncompliance and creates a record for any subsequent enforcement action.
• Verify the CPA audit. Confirm that the financial statements delivered under Section 720.307(4)(t) are accompanied by an auditor’s report signed by a licensed CPA, that the audit period runs from the association’s incorporation, and that the report states compliance with GAAS as prescribed under Chapter 473. A compilation or unreviewed financial statement is not an audit.
• Engage legal counsel before the transition election. Developers sometimes attempt to seat director-favorable candidates, amend governing documents before transition, or enter into long-term contracts that bind the incoming board. Pre-election legal review can identify and challenge these maneuvers.

When Legal Action May Be Necessary

Legal action is appropriate when the developer refuses to call a transition election after the statutory trigger has fired, when the developer delivers an incomplete or unaudited turnover package and refuses to cure the deficiency, when the developer enters into self-dealing contracts or amends governing documents in the period between the trigger and the actual election, or when the developer disputes the conveyance count calculation in a way that is inconsistent with the statute’s plain text. The association’s incoming board — acting through counsel — can seek injunctive relief and declaratory judgment in circuit court to compel compliance with Section 720.307.

Homeowners in HOA communities are protected by Chapter 720, but unlike condominium associations under Chapter 718, most HOA governance disputes are typically handled through private legal action and not through broad DBPR enforcement programs. For HOA disputes under Chapter 720, owners typically use written demands, mediation or informal dispute‑resolution efforts, and, when necessary, circuit‑court lawsuits; the condominium arbitration process in Section 718.1255 applies to condo cases, not HOA developer‑turnover disputes. A Florida attorney experienced in HOA developer-transition disputes can assess the specific community’s trigger date, identify deficiencies in the developer’s turnover package, and pursue the appropriate enforcement path.

Actionable Summary Table

Situation	Governing Statute	Homeowner Action
Community is 3+ months past 90% conveyance; no election called	Section 720.307(1)(a)	Demand in writing that the developer convene transition election immediately. The majority-control entitlement has vested; the developer has no authority to delay.
50% of parcels conveyed; no homeowner seat on board	Section 720.307(2)	Demand a homeowner-elected board seat in writing. One seat is a statutory right once 50% threshold is reached.
Developer has unpaid assessments for 2+ years	Section 720.307(1)(c)	Assert the rebuttable presumption of abandonment. Send written demand for transition election citing Section 720.307(1)(c) and Section 720.308.
Turnover package delivered past the 90-day window	Section 720.307(4)	Document the late delivery and request all missing items by category. Late delivery may support a damages claim for costs of reconstruction.
Turnover package lacks CPA audit	Section 720.307(4)(t)	Reject the financial package as noncompliant and demand a GAAS-compliant audit from an independent CPA. Unaudited financials do not satisfy (4)(t).
Developer files Chapter 7 bankruptcy	Section 720.307(1)(d)	Transition trigger fires immediately upon filing. Contact HOA counsel to initiate transition process through the bankruptcy proceeding.
Developer disputes 90% conveyance count, claiming builder-held lots are developer-held	Section 720.307(1)(a)	Obtain deed records from the county property appraiser. Builder-held lots sold in the ordinary course are conveyed to members other than the developer and count toward the threshold.
Developer enters new long-term service contracts just before transition election	Section 720.308 (fiduciary duties)	Challenge new contracts entered in bad faith during the transition period. Developer fiduciary duties under Section 720.308 apply through turnover completion.

Related Knowledge — Cross-Chapter Linking

Section 720.307 governs HOA developer turnover under Chapter 720, Fla. Stat. The parallel provision for condominium associations is Section 718.301, Fla. Stat. Condominium turnover is governed by Section 718.301, which has its own set of detailed triggers—such as specific unit counts, percentages of units sold in a phase, and time‑based rules—so condo owners should rely directly on Section 718.301 and not on the HOA turnover rules in Chapter 720. The condo framework also includes specific SIRS and reserve-study obligations tied to the transition event. Owners in condominium communities should consult Section 718.301 directly — the Chapter 720 framework does not apply to condominiums.

Within Chapter 720, developer-transition law connects to several related articles published by Perez Mayoral, P.A.: the developer fiduciary duty obligations under Section 720.308 (which govern pre-turnover developer conduct), the board election and director eligibility rules under Section 720.306 (which govern the election held at transition), and the record-access rights of homeowners under Section 720.303(5) (which give homeowners the tools to audit the developer’s management during the pre-transition period). Understanding the full Section 720.307 turnover framework is essential context for any dispute about developer-era contracts, assessments, or reserve funding.

FAQ

When does a Florida HOA developer have to give up board control?

Florida law requires the developer to allow homeowners to elect a majority of the board when the earliest of six statutory triggers occurs under Section 720.307(1), Fla. Stat. The most common trigger is three months after 90 percent of all-phase parcels have been conveyed to members other than the developer. See Section 720.307(1)(a), Fla. Stat. The developer cannot delay this transfer once the trigger fires — the entitlement to majority control is automatic.

What documents must the developer deliver at HOA turnover in Florida?

Section 720.307(4), Fla. Stat., requires the developer to deliver at least 21 categories of records within 90 days of the majority-control trigger, at the developer’s expense. The categories include deeds to common property, the original declaration, articles of incorporation, bylaws, minute books, books and records, and an independent CPA audit of financial statements prepared in accordance with GAAS under Section 720.307(4)(t). For associations incorporated after December 31, 2007, the CPA audit is mandatory.

Can a Florida HOA developer keep a seat on the board after turnover?

Yes. Section 720.307(3), Fla. Stat., gives the developer the right to elect at least one board member for as long as it holds 5 percent or more of the parcels for sale in the ordinary course of business. Once the developer’s remaining inventory drops below 5 percent, the retained-seat right expires. The developer’s retained seat is a minority position — it does not give the developer control once the homeowner majority takes over the board.

What is the abandonment trigger for HOA developer turnover in Florida?

Section 720.307(1)(c), Fla. Stat., provides that members are entitled to elect a majority of the board upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the governing documents. The statute creates a rebuttable presumption of abandonment when the developer has unpaid assessments or guaranteed amounts under Section 720.308 for more than two years. The developer can rebut the presumption by demonstrating it has continued to perform its obligations.

What happens if the developer delivers the turnover package late or without the required CPA audit?

Late delivery and incomplete delivery of the turnover package are violations of Section 720.307(4), Fla. Stat. The new homeowner board may demand the missing documents and, if the developer fails to cure, may pursue enforcement through circuit court. Delivery of an unaudited financial package does not satisfy Section 720.307(4)(t), which requires a GAAS-compliant audit by an independent CPA. The incoming board should reject a non-compliant package in writing and demand the specific items that are missing.

Key Terms Defined

Transition Trigger:

One of six events under Section 720.307(1), Fla. Stat., any one of which — when it occurs first — vests in members other than the developer the entitlement to elect a majority of the HOA board. The most common trigger is three months after 90 percent of all-phase parcels are conveyed to non-developer members under Section 720.307(1)(a).

Rebuttable Presumption of Abandonment:

A statutory presumption under Section 720.307(1)(c), Fla. Stat., that arises when the developer has unpaid assessments or guaranteed amounts under Section 720.308 for more than two years. The presumption means the developer is deemed to have abandoned its responsibilities unless it introduces affirmative evidence to the contrary.

Document Turnover:

The developer’s obligation under Section 720.307(4), Fla. Stat., to deliver at least 21 categories of association records to the new homeowner board within 90 days of the majority-control trigger, at the developer’s expense. The package must include a GAAS-compliant CPA audit for associations incorporated after December 31, 2007.

Developer Retained Seat:

The right under Section 720.307(3), Fla. Stat., for the developer to elect at least one board member as long as it holds 5 percent or more of parcels for sale in the ordinary course of business. This is a minority position that survives the majority-control transfer but does not give the developer governance control.

GAAS (Generally Accepted Auditing Standards):

The professional standards prescribed by the Florida Board of Accountancy under Chapter 473, Fla. Stat., that govern how an independent CPA must conduct and report on an audit. Section 720.307(4)(t) requires the developer’s turnover financial audit to comply with GAAS — a requirement that cannot be satisfied by a compilation, review, or unaudited statement.

Conclusion

Florida law requires a homeowners’ association developer to relinquish majority board control when the earliest of six statutory triggers fires under Section 720.307(1), Fla. Stat. — including the standard rule that three months after 90 percent of all-phase parcels are conveyed to non-developer members the majority-control entitlement vests automatically — and upon that transfer the developer must deliver at least 21 categories of association records, including a GAAS-compliant independent CPA audit, to the new homeowner board within 90 days, while retaining only a minority seat so long as it holds 5 percent or more of parcels for sale in the ordinary course of business under Section 720.307(3), Fla. Stat. See Section 720.307(1), (2), (3), and (4)(t), Fla. Stat.

Call Us Today!

If the developer of your HOA has refused to call a transition election after the statutory threshold was crossed, has delivered an incomplete or unaudited turnover package, has entered self-dealing contracts before the transition, or has disputed the conveyance count to delay homeowner control — contact Perez Mayoral, P.A., with offices in Coral Gables, Tampa, and Orlando. We represent homeowners only. We never represent associations.

Disclaimer

This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Florida law changes frequently; consult a licensed Florida attorney for advice specific to your situation.

Sources

Section 720.307, Florida Statutes — https://www.flsenate.gov/Laws/Statutes/2025/720.307

Section 720.308, Florida Statutes (developer fiduciary duties) — https://www.flsenate.gov/Laws/Statutes/2025/720.308

Section 718.301, Florida Statutes (condo turnover parallel) — https://www.flsenate.gov/Laws/Statutes/2025/718.301