Property OwnershipIntermediateNorth Carolina Exam

NC General Statutes Chapter 47C (NC Condominium Act) grants unit owners the right to:

AModify common elements without HOA approval, in general

BInspect financial records of the condo associationCorrect

CWithhold all HOA dues without penalty

DConvert their unit to commercial use

Why Inspect financial records of the condo association Is Correct

Answer B: Inspect financial records of the condo association

Under the North Carolina Condominium Act, the association must keep financial records, and all financial and other records, including records of association and executive board meetings, must be made reasonably available for examination by any unit owner and the owner's agents. Owners are also entitled to an annual income and expense statement and balance sheet within 75 days after fiscal year end. The Act does not let owners withhold assessments or freely alter common elements.

Source: N.C.G.S. 47C-3-118

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.

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Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Deed

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