When does a planned community come into existence?

• A. It comes into existence when the developer completes the first sale.
• B. It comes into existence when the board and homeowners agree on rules.
• C. The planned community comes into existence when the CC&Rs are filed in the local recorder of deeds or registrar of titles.
• D. It comes into existence after the annual budget is approved.

Answer: (C)

The key idea is that a planned community exists once its declaration, the CC&Rs, is filed in the local land records. When the CC&Rs are recorded with the recorder of deeds or registrar of titles, they become part of the public property records and bind current and future owners. This recording creates the legal framework for the community—establishing the association, defining what is a common area, outlining voting rights, and setting up the authority to levy assessments and enforce covenants. Without this filing, the community can be organized in intent, but it lacks the enforceable, publicly noticeable structure that gives it legal existence. Therefore, the moment the CC&Rs are recorded is when the planned community comes into existence. The other events—completing the first sale, agreeing on rules, or approving the budget—do not by themselves establish legal existence.