What is the time frame within which a developer must establish an Owners' Association (OA) after the first unit is sold?

The correct answer indicates that a developer must establish an Owners' Association (OA) within 90 days after the first unit is sold. This timeframe is crucial as it ensures that the owners of properties within a development have a structured organization to manage the common areas, make decisions regarding the property, and protect their shared interests.

Setting up an Owners' Association promptly fosters a sense of community among the unit owners and provides them with the framework needed to address issues such as maintenance, governance, and financial management of the property. The 90-day requirement allows enough time for the developer to transition the responsibilities to the association while ensuring that the new owners are actively involved in managing their investments from an early stage.

In contrast, shorter time frames, such as 30 or 60 days, may not provide adequate opportunity for developers to set up the association effectively, while a longer timeframe of 120 days could delay the formation of a structured governance model for the community, potentially leading to confusion or mismanagement among owners.