57-8a-502. Period of administrative control

(1) Unless otherwise provided for in a declaration, a period of administrative control terminates on the first to occur of the following:
      (a) 60 days after 75% of the lots that may be created are conveyed to lot owners other than a declarant;
      (b) seven years after all declarants have ceased to offer lots for sale in the ordinary course of business; or
      (c) the day the declarant, after giving written notice to the lot owners, records an instrument voluntarily surrendering all rights to control activities of the association.

(2)(a) A declarant may voluntarily surrender the right to appoint and remove a member of the board before the period of administrative control terminates under Subsection (1).
      (b) Subject to Subsection (2)(a), the declarant may require, for the duration of the period of administrative control, that actions of the association or board, as specified in a recorded instrument executed by the declarant, be approved by the declarant before they become effective.
      (c) During a period of administrative control, except as provided in Subsection (2)(a), a declarant may appoint the declarant's officers, employees, or agents as members of the board.

(3)(a) Upon termination of the period of administrative control, the lot owners shall elect a board consisting of an odd number of at least three members, a majority of whom shall be lot owners.
      (b) Unless the declaration provides for the election of officers by the lot owners, the board shall elect officers of the association.
      (c) The board members and officers shall take office upon election or appointment.

Enacted 2013, ch. 152.  Amended 2016, ch. 210 eff. March 23, 2016.

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