Property OwnershipIntermediateArizona Exam

An Arizona property that is located in a 'homeowner's association (HOA) community' has what type of encumbrances attached?

AOnly the existing mortgage lien and the HOA assessment lien; CC&Rs are advisory guidelines that do not create binding obligations on subsequent purchasers
BCC&Rs (Covenants, Conditions, and Restrictions) that run with the land and bind all future ownersCorrect
COnly government-imposed zoning and building code restrictions; private CC&Rs are enforceable only between the original parties who signed the recorded declaration
DOnly the voluntary agreements made by the current owner, which are not enforceable against future buyers unless disclosed and reaccepted in each subsequent deed

Why CC&Rs (Covenants, Conditions, and Restrictions) that run with the land and bind all future owners Is Correct

Answer B: CC&Rs (Covenants, Conditions, and Restrictions) that run with the land and bind all future owners

HOA communities are governed by CC&Rs recorded with the original development. These private deed restrictions run with the land and are binding on all future owners, whether or not the new owner is personally aware of them.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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