When Does the Declarant Control Period Really End?
We generally think of the declarant control period ending 60 days after the sale of 75% of the total number of units that may be created within the community. However, the Colorado Common Interest Ownership Act also has two other “triggering” events that may act to terminate the period of Declarant control. CCIOA provides that in addition to termination based upon 75%, the Declarant control period will terminate two years after the last date the Declarant annexed property into the community or two years after the last sale of a unit in the ordinary course of business. The Declarant control period terminates one whichever of these three events occurs first. So, with the slow housing market, these other two triggers may become more commonplace. Current Declarant controlled communities may want to look at these alternative dates and clearly understand when transition will occur.