Period of administrative control.

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  • (1) Unless otherwise provided for in a declaration, a period of administrative control terminates on the first to occur of the following:
    • (a) 60 days after 75% of the lots that may be created are conveyed to lot owners other than a declarant;
    • (b) seven years after all declarants have ceased to offer lots for sale in the ordinary course of business; or
    • (c) the day the declarant, after giving written notice to the lot owners, records an instrument voluntarily surrendering all rights to control activities of the association.
  • (2)
    • (a) A declarant may voluntarily surrender the right to appoint and remove a member of the board before the period of administrative control terminates under Subsection (1).
    • (b) Subject to Subsection (2)(a), the declarant may require, for the duration of the period of administrative control, that actions of the association or board, as specified in a recorded instrument executed by the declarant, be approved by the declarant before they become effective.
    • (c) During a period of administrative control, except as provided in Subsection (2)(a), a declarant may appoint the declarant's officers, employees, or agents as members of the board.
  • (3)
    • (a) Upon termination of the period of administrative control, the lot owners shall elect a board consisting of an odd number of at least three members, a majority of whom shall be lot owners.
    • (b) Unless the declaration provides for the election of officers by the lot owners, the board shall elect officers of the association.
    • (c) The board members and officers shall take office upon election or appointment.




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