The documents that bring the community association into existence and indicate whether stock will be issued are called what?

The documents that bring the community association into existence and indicate whether stock will be issued are called what?

• A. Recorded map, plat, or plan
• B. Declaration, CC&Rs, or master deed
• C. Proprietary lease or occupancy agreement
• D. Articles of incorporation

Answer: (D)

The main concept being tested is how a community association is created as a legal entity and whether it will issue stock. Articles of Incorporation are the documents filed with the state that bring the corporation into existence. They establish the association as a legal entity and typically specify basic details such as its name, purpose, and the authorization to issue shares of stock to members. This filing is what makes the entity legitimate and capable of owning property and entering into contracts. Other documents serve different roles: a recorded map or plat shows subdivision boundaries and land descriptions; a declaration or CC&Rs sets covenants and rules for members; a proprietary lease or occupancy agreement governs the rights to occupy units. None of these establish the corporation or authorize stock issuance.

The main concept being tested is how a community association is created as a legal entity and whether it will issue stock. Articles of Incorporation are the documents filed with the state that bring the corporation into existence. They establish the association as a legal entity and typically specify basic details such as its name, purpose, and the authorization to issue shares of stock to members. This filing is what makes the entity legitimate and capable of owning property and entering into contracts.

Other documents serve different roles: a recorded map or plat shows subdivision boundaries and land descriptions; a declaration or CC&Rs sets covenants and rules for members; a proprietary lease or occupancy agreement governs the rights to occupy units. None of these establish the corporation or authorize stock issuance.