Transition Study

The process of passing control from the property developer to the owners’ association marks a crucial step for a community association. The community’s governing body has the critical task of confirming that the developer has met all of its obligations and expectations. This is also when the association board puts in place the important procedures that guarantee the property is suitably maintained to preserve the physical plant and the organization’s ongoing financial stability.

To enable community associations to successfully achieve this critical transfer, Lockatong Engineering performs a Transition Study. We visually review the as-built development and compare it to the design drawings and association documents, confirming that no defects exist and all obligations are met. Our transition study includes a site and building exterior analysis and reviewing interiors of a percentage of the units.

More specifically, Lockatong Engineering completes these tasks:

  • Review all engineering and architectural drawings and the public offering statement, as provided.
  • Visit the appropriate municipal offices to review the public documents and resolutions concerning the development.
  • Perform on-site visual observations to identify any areas that have not been built in general conformance with the design documents or acceptable workmanship.
  • Inspect interiors of five percent of the units. Often we are able to identify systemic defects in private spaces that should receive the attention of the developer prior to transition to association ownership.
  • Create a Narrative Report of Transition based on our observations. This details each deficiency and its possible cause(s), recommends for corrective action and references any performance standard if applicable.
  • Create a Transition Defect Budget for Correction that provides the association with an estimate of the costs for correction and of the amount that association obligations could potentially exceed normal reserve funding.
  • An option, which requires board approval: Prepare a questionnaire that is distributed to all residents so they can report concerns regarding their own unit’s interior and help identify common issues.
  • Accept the property as is.
  • Accept it with conditions.
  • Decline to accept responsibility for maintaining the property until all work is completed.

Lockatong’s completed transition study includes one of these recommendations:

Lockatong Engineering has found that new associations benefit greatly by commissioning both a Transition Study and a Reserve Study before accepting control of the project. In new construction, a reserve study is often done alongside a transition study to provide community associations with a more secure financial footing, a clearer idea of what to expect in capital costs over the next 20 years, and a capital reserve funding schedule to pay for anticipated major repairs or replacement.

Click here to download our most recent Transition Study brochure.