What happens when the sponsor turns over control to the Condo?

When a sponsor sells a condo, at some point they turn over control of the condo to the owners. According to Cooperator, it must happens in 5 years maximum or when 50% of the apartments are sold.

From there, the owners have to be ready to take the baton. In the article, the writer goes through the steps necessary to be ready. Among them, a team of advisers needs to be in place including lawyers, accountants and engineers. The owners must make sure that the sponsor has lived up to their requirements as laid forth in the offering plan.

There are buildings that I know of that have had facade or construction defects only a few years after they were built. Perhaps they did or did not consult with an engineer when taking control from the developer. Also, the wording in the offering plan is to protect the sponsor and not necessarily the condo going forward so a legal review of the offering plan may be necessary.

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