What is a turnover meeting in a new Ontario condo and why does it matter?

A turnover meeting is the point at which control of a new condominium corporation passes from the developer to the unit owners. Under the Condominium Act, 1998, the developer must call a turnover meeting once a certain percentage of units have been sold to purchasers other than the developer. At this meeting, unit owners elect a board of directors from among themselves and take over governance of the corporation.

Before the turnover, the developer controls the corporation and sets initial common expense budgets. At turnover, the developer is required to hand over a package of records including the reserve fund study, financial statements, all contracts the corporation has entered into, and a number of other required documents. New owner-elected directors can then review how the corporation was managed and what obligations it has inherited.

If you move into a new condo building, attending the turnover meeting and any subsequent owner meetings is important. Early decisions by the new board — including reviewing contracts entered by the developer — can significantly affect owners' costs and quality of life.