The short answer
Transition is when control of an association passes from the developer (sponsor) to owner-elected board members, typically in stages as units sell. The new board should collect all documents and funds, commission an independent transition study of the common elements, and resolve construction deficiencies with the developer before warranty and claim windows close.
How control passes
New Jersey law ties owner control to sales: owners elect a share of the board as units are conveyed, and gain full control once a large majority of units have sold, or within statutory time limits. The governing documents and the transition period provisions set the details.
What the board should receive
- Governing documents, plans, specifications, and as-built drawings
- Financial records, bank accounts, and the working-capital and reserve funds
- Warranties, permits, and certificates of occupancy
- Vendor contracts and insurance policies
- Keys, codes, and access devices
The transition study
An independent engineer inspects the common elements against the approved plans and building codes and lists deficiencies. The association uses the report to negotiate repairs or a settlement with the developer. Waiting too long can forfeit claims.
How we help
Comet supports new boards through transition — inventorying what the developer turns over, coordinating the engineer, setting up proper banking and reserves, and building the first owner-controlled budget.
Common questions
Should the developer's manager stay after transition?
The new board should evaluate the manager independently. A manager hired by the developer may have competing loyalties during deficiency negotiations.
Who pays for the transition study?
Typically the association. The cost is small relative to the deficiencies a study can uncover.
General information about New Jersey rules as of October 2026, not legal advice. Laws and municipal requirements change — confirm specifics with your attorney or the municipality before acting.
Reviewed October 2026 by Comet Management, Hamburg, NJ.