In a phased condominium project, when may the declarant lose rights to appointment of directors?

In a phased condominium project, the declarant typically maintains the right to appoint directors until a specific threshold of the condominium units is sold. The correct answer indicates that the declarant loses these appointment rights when 80% of the undivided interest is sold, unless they are permitted to add more property to the project.

This provision is significant because it protects the interests of the unit owners and promotes a more democratic governance structure within the community. Once the ownership interest reaches this threshold, it is expected that the interests of the original developer may no longer align with those of the unit owners, as a majority of ownership would have shifted to individual residents. The ability for a declarant to maintain those appointment rights beyond 80% assumes that there is an intention to further develop or expand the community, which could necessitate continued control.