Florida Community Association Manager Practice Exam

When is a condominium officially created?

1. When the physical structure is completed

2. When the property management firm is appointed

3. When its declaration of covenants is recorded

4. When the first unit is sold

The correct answer is: When its declaration of covenants is recorded

A condominium is officially created when its declaration of covenants is recorded. This declaration constitutes the legal document that establishes the condominium and outlines the rights and responsibilities of the unit owners, as well as the governance structure of the condominium association. Recording this document with the appropriate local government authority is a key step in the legal formation of the condominium, making it recognizable under law and binding to current and future owners. Other stages, such as the completion of the physical structure or the sale of the first unit, signify progress in the development and marketing of the condominium but do not confer the legal status of condominium ownership. The appointment of a property management firm is also important for the ongoing management of the property but does not create the condominium itself. Thus, the declaration of covenants plays a critical foundational role in establishing the condominium as a legal entity.