Property Ownership

What is a 'property owners association' (POA) and how does it differ from a condominium association?

AA. They are identical; the terms are used interchangeably
BB. A POA governs planned subdivision communities where owners hold separate lots; a condo association governs buildings where owners hold units and undivided shares of common elements✓ Correct
CC. POAs are required by state law; condo associations are optional
DD. POAs manage commercial properties; condo associations manage residential only

Explanation

A Property Owners Association (POA) or Homeowners Association (HOA) typically governs planned subdivisions where owners hold fee simple title to their lots (including the land under their home). A condominium association governs buildings where owners hold units plus undivided shares of common elements. Both can enforce CC&Rs and levy assessments.

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