Property OwnershipIntermediateNorth Carolina Exam

Under NC's NC Homeowners Association Act (Chapter 47F), an HOA has the authority to:

ACondemn properties for public use

BEnforce covenants and collect assessments, and may place a lien for unpaid duesCorrect

CRezone properties within the community, as most licensees would generally expect

DIssue building permits

Why Enforce covenants and collect assessments, and may place a lien for unpaid dues Is Correct

Answer B: Enforce covenants and collect assessments, and may place a lien for unpaid dues

Under the NC Planned Community Act, an HOA may enforce covenants, collect assessments, and place a lien on properties with unpaid dues — and may eventually foreclose on that lien.

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

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.

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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.

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.

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