What must be formed prior to the transfer of the first unit in a condominium?

Before the transfer of the first unit in a condominium, it is essential to form a unit owner's association. This association is a critical component in the management and maintenance of the condominium property, as it represents the collective interests of all unit owners. The unit owner's association is responsible for establishing rules and regulations, managing common areas, and ensuring that the needs of the residents are met.

Forming this association prior to any unit transfers provides a structured framework for governance and helps protect the rights of individual owners. It ensures that there is an organized body in place to oversee the condominium's operations, including maintenance, assessments, and the enforcement of community guidelines. This is fundamental in a condominium setting, where shared services and responsibilities are commonplace.

Other options, while potentially relevant in different contexts, do not directly refer to the necessary prerequisite for condominium unit transfers. A legal contract might be relevant for individual transactions but does not establish the broader framework needed for all owners. A developer's association is typically involved in the initial stages of development rather than the ownership structure. Financing arrangements are important in the purchase process but do not address the governance and operational structure required prior to transferring unit ownership.