Property OwnershipIntermediateDelaware Exam

What is a 'homeowners association' (HOA) and what authority does it have in Delaware?

ASimply an informal voluntary social group for homeowners that carries absolutely no legal authority at all, in most cases

BA legal entity created to govern a planned community, enforcing CC&Rs, maintaining common areas, and levying assessmentsCorrect

CA county government office that manages homeowner disputes

DA state agency that regulates residential property standards

Why A legal entity created to govern a planned community, enforcing CC&Rs, maintaining common areas, and levying assessments Is Correct

Answer B: A legal entity created to govern a planned community, enforcing CC&Rs, maintaining common areas, and levying assessments

An HOA is a private legal entity (typically a non-profit corporation) created to govern a planned community, condominium, or similar development. It enforces covenants, conditions & restrictions (CC&Rs), maintains common areas, and levies assessments to fund operations.

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

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Math Concepts

Profit & Loss

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