The shift from a under-construction to a thriving community is one of the most important, and sometimes overlooked, chapters in the life of a strata corporation in British Columbia.
This transition, known as condo turnover, is when the building’s governance moves from the developer’s hands to the owners. It’s an exciting time for owners, but also one where small oversights can have big consequences.
In a candid conversation, David Locke of Duka Property Management sat down with Thomas to talk about the realities of condo turnover: what it really involves, why it’s more complicated than most people think, and how to set your community up for success.
What exactly is condo turnover? Why does it matter?
Condo turnover is the formal, legal process where control of the strata corporation shifts from the developer to the owners. It’s the point where the building stops being “the developer’s project” and starts being the shared responsibility of the strata corporation.
This time is when owners elect their first council, budgets become everyone’s business, and responsibility for day-to-day operations, everything from hallway cleaning schedules to long-term building maintenance, lands squarely on the homeowners.
“Owners move in and start their lives, but they don’t always see what’s happening behind the scenes. The real work is in the details that are handled quietly. Until they aren’t” says David.
From that moment forward, legal obligations, warranties, finances, repairs, and even something as small as who has the keys to the electrical room become part of the community’s responsibility. Whether the owners are ready or not, the baton is passed.
The key players
Successful turnover isn’t a one-person job, it’s a coordinated effort between several groups including the developer, strata council, management company, lawyers, engineers and the warranty provider.
- Developer: Hands over all required documents, funds, and keys to the new strata council.
- Strata Council: Newly elected owners who will make decisions, from approving budgets and maintenance, to resolving disputes.
- Strata Manager: The operational expert who keeps things running smoothly and advises the council on procedures and best practices.
- Legal & Engineering Professionals: Specialists who verify warranties, inspect for construction issues, and help with due diligence.
- Warranty Provider – Under BC’s 2-5-10 warranty program, they cover defects for set periods after construction.
The handover timeline
Locke is quick to point out that turnover is a process, not a single event. It usually unfolds in three key stages:
1. Pre-turnover (3–6 Months Before Move-In)
The developer’s chosen management company begins preparing by collecting records, reviewing contracts, setting up utilities, and ensuring basic operations are in place. All under the approvals of the developer.
“The less you leave to the last minute,” Locke says, “the smoother it all goes.” Early prep avoids the chaos at the last minute.
2.Turnover meeting (1–2 Months Before Possession)
At this stage, the official documents, contracts, building manuals, and keys are transferred. One crucial detail: the Contingency Reserve Fund (CRF) must be funded with at least 10% of the first-year operating budget before any units change hands to the owners.
3. First annual general meeting
Held within six weeks of the moment 50%+1 units closes or nine months after the first unit closes, whichever comes first. At this time, owners elect their first council, approve the operational budgets, and receive the full set of building manuals, service contracts, and drawings.
Common pitfalls
It might sound simple, but there are some common pitfalls that arise during this time. However, knowing the potential issues, along with proper guidance, these challenges can be navigated with some ease.
Budget shortfalls
Locke calls underfunded budgets the “number one” challenge. Often, a budget created years earlier is outdated by the time owners move in. Insurance premiums, maintenance contracts, and utility rates can all be higher than projected, leading to inevitable fee increases in the first year.
“Nobody likes it,” admits Locke, “but it’s normal. A developers budget is often set years before occupancy and with sales in mind, not long-term operations”.
Miscommunication and missing paperwork
When communication breaks down, owners are left confused and frustrated. Missing documents or unclear expectations can sometimes lead to legal headaches. Locke stresses the importance of clear, transparent updates in the first few months.
Construction deficiencies
No building is perfect. Common issues can range from paint touch-ups to serious waterproofing problems. In British Columbia, warranties typically cover general defects for 15 months, mechanical/electrical issues for two years, the building envelope for five years, and structural components for 10 years.
Locke’s advice? Hire an independent engineering firm to conduct a full review early on.
Best practices for a smooth transition
Locke notes that transitions don’t need to be difficult. He notes that there are some best practices for councils, owners and their management company to adopt in order to have a successful transition for the community.
Educate owners early
Many residents are new to these types of communities and have no idea how a strata corporation operates. At the first meeting it is incredibly important to explain who to contact for repairs, how decisions are made, and why patience is important.
Locke notes that you need to set the tone from day one to maintain that positive community going forward.
Create committees
Maintenance, social events, warranty follow-up committees get more people involved, lighten the load on council members, and build a sense of community.
Keep solid records
The first months generate a mountain of important information such as manuals, warranties, contracts, minutes. Organize it well at the beginning and save countless headaches later.
Track warranty deadlines
Missed deadlines can mean losing thousands of dollars in potential repairs. A calendar of every warranty milestone and follow up proactively.
Communicate often and clearly
Regular newsletters, email updates, and owner information sessions can prevent small misunderstandings from turning into major disputes.
Bring in the experts
Independent engineers, depreciation report specialists, and legal advisors can all spot potential issues that might be missed. While it comes at a cost, it will can help protect the building’s interests.
Real-world lessons
After managing more than 60 turnover projects, Locke says no two are exactly alike. In small communities, owner participation is often high, while big communities may struggle to get more than a handful of council members.
“If you think you know everything after your first council meeting, you’re probably wrong” laughs Locke. “That’s okay. Nobody starts out as an expert”.
The takeaway? Living in a strata corporation is an ongoing learning process, and everything, even mistakes, can be a valuable lesson.
The bottom line
Moving from developer to owner control is the single biggest shift a building will go through. It’s a complicated mix of legal obligations, financial realities, and interpersonal relationships.
However, focusing on resident education, transparent communication, good record-keeping, and owner engagement, the community can set up for long-term success and a smooth transition.
As Locke wisely puts it:
“Do it right at the beginning and the rest will take care of itself. No building is perfect, but with teamwork and transparency, your new home can truly become your community”.