Florida Broker Practice Exam

What document creates the corporate entity responsible for operating a condominium?

1. Bylaws of the association

2. Articles of incorporation of the association

3. Prospectus

4. Declaration of condominium

The correct answer is: Articles of incorporation of the association

The Articles of Incorporation of the association are the legal documents that establish a corporate entity specifically for the purpose of operating a condominium. This document outlines the structure, governance, and operational guidelines for the condominium association. It is a formal requirement that allows the association to function as a legal entity, granting it the ability to enter into contracts, sue or be sued, and perform other duties necessary to manage the condominium community effectively. In the context of condominium operations, the Articles of Incorporation also specify the powers of the association, the rights and responsibilities of unit owners, and the procedures for electing the board of directors, which further emphasizes its importance. It serves as the foundational document that solidifies the association's existence in accordance with state law, making it essential for the management and administration of the condominium. While the Bylaws of the association and the Declaration of Condominium are important legal documents that help govern the operation of the condominium and outline the rights of the unit owners, they do not create the corporate entity itself. A Prospectus, on the other hand, is generally a document used in the marketing phase, providing potential purchasers with significant information about the condo's features, potential fees, and risks, but it does not establish the association as a