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Old 11-27-2007, 02:26 PM
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Join Date: Nov 2007
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PA Declarant won't relinquish control of Board


What is the name of your state? Pennsylvania

I am involved in a bit of a battle with the Developer/Declarant of my Condo. The building is transitioning from Declarant to owner control very soon (within the week). The developer has stated that at the election of the new owner controlled board, they intend to run for the majority of the board seats, essentially remaining in full control of the board. The building is 85% sold, but that leaves around 20 in the hands of the developer (RE market has slowed a bit lately). PA Uniform Condo Act says this about the transition:

"Election of members and officers following declarant control.--Not later than the termination of any period of declarant control, the unit owners shall elect an executive board of at least three members at least a majority of whom must be unit owners, except that the executive board may consist of two members, both of whom must be unit owners, if the condominium consists of two units. The executive board shall elect the officers. The persons elected shall take office upon election."

First, is the developer considered a unit owner since they still have the 20 units to sell? My read of the above is that the developer could have a minority of board seats but the owners (us) must have a majority.

Second, in order to sway the election in their favor, they have been collecting many proxy forms from unsuspecting owners (without a list of board nominees) and telling them they (the Declarant) would vote in these owners "best interests". Is this legal for them to do? It seems at least unethical.

Does anybody know if the Declarant can maintain a Board majority past the time of transition?

Thank you.
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