Oregon 30-Hour Real Estate Law Practice Test

In a planned unit development, who generally owns the recreational facilities?

1. The local government

2. The condo owners

3. The developer

4. Private investors

The correct answer is: The condo owners

In a planned unit development (PUD), the recreational facilities are typically owned by the condo owners, or home association members. This ownership model is designed to foster a sense of community among residents, as they collectively manage and maintain these shared amenities such as parks, pools, and recreational centers. This setup encourages cooperation and involvement among residents, ensuring that the facilities are used and cared for according to the community’s needs. While the developer initially constructs these facilities, ownership usually transfers to the homeowners association (HOA) once the PUD is completed and the development is sold out. This transition allows homeowners to have a direct say in the management and operations of the recreational spaces. In contrast, options such as local government, other private investors, or the developer maintaining ownership do not align with the intent of a PUD, which emphasizes community involvement and shared ownership among residents.