An association should establish reserves for - ANSWER (a) Because associations may be
able to avoid or reduce large special assessments.
An association should establish reserves for - ANSWER (c) Because associations may be
able to avoid or reduce large increases in regular assessments.
An association should establish reserves for - ANSWER Because there are statutory re-
quirements that mandate reserves in certain circumstances.
99. What is a balance sheet? - ANSWER A statement of the association's financial posi-
tion at a particular moment in time
98. If an association files its federal income tax return using Form 1120, it must pay taxes on
any excess revenue over expenses unless: - ANSWER (a) The excess is returned to its
members.
97. An association with a total annual revenue of less than $150,000 is required to prepare
which type of annual financial report? - ANSWER (c) Cash receipts
96. If an HOA provides a notice instead of a copy of the financial report to its members,
within what period must it provide a copy of the annual financial report, upon written re-
quest of a member? - ANSWER (c) Ten business days
95. If a condominium board decides to send a notice to its members instead of a copy of the
financial report, what statement must be included? - ANSWER (b) A copy of the financial
report will be mailed or hand- delivered, without charge, within five business days after re-
ceipt of the member's written request.
1
, 94. The annual financial report or a notice of its availability upon request, must be mailed to
the members of a condominium or HOA within: - ANSWER (b) Twenty-one days after the
report is completed but not more than 120 days after the end of the prior fiscal year or
other date provided in the bylaws
93. All of the following are true of an estoppel certificate - ANSWER (a) It is requested by
title and mortgage companies on sales, transfers, and re-financings.
93. All of the following are true of an estoppel certificate - ANSWER (b) It is legally bind-
ing even if factually incorrect.
93. All of the following are true of an estoppel certificate - ANSWER (d) It may include a
statement of future costs of correcting a member's use restriction violations.
92. What is a qualifying offer? - ANSWER (a) A written offer of a member to pay all
amounts secured by a lien of the association plus amounts accruing during the pendency pe-
riod of the offer
91. A condominium or cooperative is required to provide written notice to the member of its
intention to foreclose a claim of lien if it is to retain its right to recover attorney's fees and
court costs: - ANSWER (a) 30 days
90. All of the following are true of liabilities acquired upon transfer of title to a cooperative
unit - ANSWER (b) In an involuntary transfer, the new member is jointly and severally lia-
ble with the previous member for all unpaid assessments against the previous member.
90. All of the following are true of liabilities acquired upon transfer of title to a cooperative
unit - ANSWER (c) The new member's liability may be voided by their waiver of their right
to use the common area.
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able to avoid or reduce large special assessments.
An association should establish reserves for - ANSWER (c) Because associations may be
able to avoid or reduce large increases in regular assessments.
An association should establish reserves for - ANSWER Because there are statutory re-
quirements that mandate reserves in certain circumstances.
99. What is a balance sheet? - ANSWER A statement of the association's financial posi-
tion at a particular moment in time
98. If an association files its federal income tax return using Form 1120, it must pay taxes on
any excess revenue over expenses unless: - ANSWER (a) The excess is returned to its
members.
97. An association with a total annual revenue of less than $150,000 is required to prepare
which type of annual financial report? - ANSWER (c) Cash receipts
96. If an HOA provides a notice instead of a copy of the financial report to its members,
within what period must it provide a copy of the annual financial report, upon written re-
quest of a member? - ANSWER (c) Ten business days
95. If a condominium board decides to send a notice to its members instead of a copy of the
financial report, what statement must be included? - ANSWER (b) A copy of the financial
report will be mailed or hand- delivered, without charge, within five business days after re-
ceipt of the member's written request.
1
, 94. The annual financial report or a notice of its availability upon request, must be mailed to
the members of a condominium or HOA within: - ANSWER (b) Twenty-one days after the
report is completed but not more than 120 days after the end of the prior fiscal year or
other date provided in the bylaws
93. All of the following are true of an estoppel certificate - ANSWER (a) It is requested by
title and mortgage companies on sales, transfers, and re-financings.
93. All of the following are true of an estoppel certificate - ANSWER (b) It is legally bind-
ing even if factually incorrect.
93. All of the following are true of an estoppel certificate - ANSWER (d) It may include a
statement of future costs of correcting a member's use restriction violations.
92. What is a qualifying offer? - ANSWER (a) A written offer of a member to pay all
amounts secured by a lien of the association plus amounts accruing during the pendency pe-
riod of the offer
91. A condominium or cooperative is required to provide written notice to the member of its
intention to foreclose a claim of lien if it is to retain its right to recover attorney's fees and
court costs: - ANSWER (a) 30 days
90. All of the following are true of liabilities acquired upon transfer of title to a cooperative
unit - ANSWER (b) In an involuntary transfer, the new member is jointly and severally lia-
ble with the previous member for all unpaid assessments against the previous member.
90. All of the following are true of liabilities acquired upon transfer of title to a cooperative
unit - ANSWER (c) The new member's liability may be voided by their waiver of their right
to use the common area.
2
