IREM Certified Property Manager (CPM) Practice Test

The articles of incorporation in a Common Interest Development (CID) serve the essential purpose of defining the principles of ownership within that development. They are the foundational documents that establish the entity as a corporation, typically a homeowners association (HOA), which is responsible for managing the community's common interests. These articles detail the rights and responsibilities of the owners, the governance structure of the association, and how decisions will be made within the community.

By creating a clear framework for ownership, the articles help ensure that all owners understand their stakes in the property and how their interests will be represented. This foundational understanding is crucial for maintaining order and facilitating cooperation among residents, as it provides guidelines on how communal resources are managed and how disputes are resolved.

In contrast, the other options involve operational or legal agreements but do not inherently define ownership principles. Rules for property management, lease agreements, and tenant rights, while important in their own contexts, do not encompass the underlying structure and governance established by the articles of incorporation. Thus, the key function of the articles is to delineate ownership principles, making this choice accurate.