Nevada Community Association
Manager Licensing Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which Nevada statute primarily governs the operation of common-
interest communities?
A. NRS 86
B. NRS 78
C. NRS 116
D. NRS 645
Rationale: NRS 116, the Nevada Uniform Common-Interest
Ownership Act, regulates the creation, management, and operation
of common-interest communities.
2. What is the primary duty of a community association manager
regarding fiduciary responsibility?
A. Maximizing personal income
B. Delegating all tasks to vendors
C. Acting in the best interests of the association
D. Avoiding communication with board members
Rationale: Managers owe a fiduciary duty to act in good faith and
prioritize the association’s interests above their own.
3. A reserve study is primarily used to:
A. Track homeowner complaints
B. Determine monthly dues
C. Plan for future repair and replacement of major components
D. Audit financial statements
, Rationale: Reserve studies estimate the cost and timing of major
repairs and replacements to ensure adequate funding.
4. How often must an association in Nevada update its reserve study?
A. Every year
B. Every 10 years
C. At least every 5 years with annual review
D. Only when requested by homeowners
Rationale: Nevada law requires a study every 5 years and annual
review adjustments.
5. What quorum is typically required for board meetings unless
otherwise stated?
A. One member
B. All members
C. Majority of board members
D. Two-thirds of homeowners
Rationale: A majority of the board constitutes a quorum for
conducting official business.
6. Which document outlines the rules and restrictions for property use in
a community?
A. Articles of Incorporation
B. Bylaws
C. CC&Rs (Covenants, Conditions, and Restrictions)
D. Meeting minutes
Rationale: CC&Rs define property usage rules and obligations of
homeowners.
7. What is the purpose of bylaws in an association?
A. Regulate land use
B. Establish tax rates
C. Define governance structure and procedures
D. Set property values
Rationale: Bylaws govern internal operations such as elections,
meetings, and board roles.
8. A manager must provide financial statements to the board:
A. Once per year
B. Only upon request
, C. At least monthly
D. Every five years
Rationale: Regular monthly financial reporting ensures transparency
and oversight.
9. What type of insurance typically covers common areas?
A. Personal liability insurance
B. Auto insurance
C. General liability insurance
D. Health insurance
Rationale: General liability insurance protects the association against
claims related to common areas.
10. Which of the following is a key component of ethical
management?
A. Favoring certain homeowners
B. Ignoring complaints
C. Maintaining confidentiality
D. Sharing financial data publicly
Rationale: Ethical standards require confidentiality and impartiality.
11. What is the primary role of the board of directors?
A. Perform maintenance work
B. Enforce criminal laws
C. Make policy decisions for the association
D. Collect taxes
Rationale: The board sets policies and oversees management.
12. Which financial statement shows income and expenses?
A. Balance sheet
B. Cash flow statement
C. Income statement
D. Audit report
Rationale: The income statement reflects revenues and expenses
over a period.
13. What is a lien in the context of HOA management?
A. A type of insurance
B. A community rule
C. A legal claim against property for unpaid dues
Manager Licensing Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which Nevada statute primarily governs the operation of common-
interest communities?
A. NRS 86
B. NRS 78
C. NRS 116
D. NRS 645
Rationale: NRS 116, the Nevada Uniform Common-Interest
Ownership Act, regulates the creation, management, and operation
of common-interest communities.
2. What is the primary duty of a community association manager
regarding fiduciary responsibility?
A. Maximizing personal income
B. Delegating all tasks to vendors
C. Acting in the best interests of the association
D. Avoiding communication with board members
Rationale: Managers owe a fiduciary duty to act in good faith and
prioritize the association’s interests above their own.
3. A reserve study is primarily used to:
A. Track homeowner complaints
B. Determine monthly dues
C. Plan for future repair and replacement of major components
D. Audit financial statements
, Rationale: Reserve studies estimate the cost and timing of major
repairs and replacements to ensure adequate funding.
4. How often must an association in Nevada update its reserve study?
A. Every year
B. Every 10 years
C. At least every 5 years with annual review
D. Only when requested by homeowners
Rationale: Nevada law requires a study every 5 years and annual
review adjustments.
5. What quorum is typically required for board meetings unless
otherwise stated?
A. One member
B. All members
C. Majority of board members
D. Two-thirds of homeowners
Rationale: A majority of the board constitutes a quorum for
conducting official business.
6. Which document outlines the rules and restrictions for property use in
a community?
A. Articles of Incorporation
B. Bylaws
C. CC&Rs (Covenants, Conditions, and Restrictions)
D. Meeting minutes
Rationale: CC&Rs define property usage rules and obligations of
homeowners.
7. What is the purpose of bylaws in an association?
A. Regulate land use
B. Establish tax rates
C. Define governance structure and procedures
D. Set property values
Rationale: Bylaws govern internal operations such as elections,
meetings, and board roles.
8. A manager must provide financial statements to the board:
A. Once per year
B. Only upon request
, C. At least monthly
D. Every five years
Rationale: Regular monthly financial reporting ensures transparency
and oversight.
9. What type of insurance typically covers common areas?
A. Personal liability insurance
B. Auto insurance
C. General liability insurance
D. Health insurance
Rationale: General liability insurance protects the association against
claims related to common areas.
10. Which of the following is a key component of ethical
management?
A. Favoring certain homeowners
B. Ignoring complaints
C. Maintaining confidentiality
D. Sharing financial data publicly
Rationale: Ethical standards require confidentiality and impartiality.
11. What is the primary role of the board of directors?
A. Perform maintenance work
B. Enforce criminal laws
C. Make policy decisions for the association
D. Collect taxes
Rationale: The board sets policies and oversees management.
12. Which financial statement shows income and expenses?
A. Balance sheet
B. Cash flow statement
C. Income statement
D. Audit report
Rationale: The income statement reflects revenues and expenses
over a period.
13. What is a lien in the context of HOA management?
A. A type of insurance
B. A community rule
C. A legal claim against property for unpaid dues
