Property OwnershipIntermediateNorth Carolina Exam

The NC Planned Community Act (Chapter 47F) requires residential HOAs to:

AHold annual meetings and maintain adequate financial recordsCorrect

BSimply hire a licensed property manager, a requirement the NC Planned Community Act does not actually impose on residential HOAs

CMaintain a reserve fund equal to 25% of annual assessments

DFile annual reports with the NCREC

Why Hold annual meetings and maintain adequate financial records Is Correct

Answer A: Hold annual meetings and maintain adequate financial records

The NC Planned Community Act requires HOAs to conduct regular member meetings, maintain financial records, and act in accordance with the community's governing documents.

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.

People Also Study

Key Terms to Know

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).

Easement

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