Property OwnershipIntermediateDelaware Exam

What is a 'homeowners association' (HOA) and what powers does it have over Delaware property owners?

AAn HOA is a voluntary organization with no legal enforcement power
BAn HOA is a legal entity governed by its Declaration, Bylaws, and Rules that can enforce deed restrictions, collect assessments, and place liens on properties for non-paymentCorrect
CAn HOA is a government agency overseeing residential neighborhoods
DAn HOA can only ever enforce narrow aesthetic rules such as landscaping requirements, and nothing else, though specific requirements can vary depending on the transaction details

Why An HOA is a legal entity governed by its Declaration, Bylaws, and Rules that can enforce deed restrictions, collect assessments, and place liens on properties for non-payment Is Correct

Answer B: An HOA is a legal entity governed by its Declaration, Bylaws, and Rules that can enforce deed restrictions, collect assessments, and place liens on properties for non-payment

HOAs in Delaware are legal entities formed to govern common interest communities. They have authority to: enforce deed restrictions and rules, collect regular assessments (dues) and special assessments, maintain common areas, and place liens on properties for unpaid assessments.

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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