M100 Community Association
Management Exam Questions with
correct Answers
Each of the following are key characteristics of community associations
EXCEPT: a. Mandatory lien-based economic charges or assessments are
levied on each owner in order to operate and maintain the community
association.
b. Membership in the community association is mandatory and automatic for
all owners.
c. A requirement of community association ownership is serving on
the board of directors.
d. Certain documents bind all owners to be governed by the community
association. - Answer- c. A requirement of community association ownership
is serving on the board of directors.
This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve
on the board of directors; however, the overall success on the community
is dependent upon the members' involvement its affairs.
True or False. The primary purpose of a community association is to
provide for the governance, business, and communal aspects of the
association. - Answer- True
Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
residential real estate development, and through the establishment of a
system of property rights, binding covenants and restrictions, and rules
and regulations.
Each of the following are basic types of residential community associations
EXCEPT: a. Planned community
b. Townhouse
c. Cooperative
d. Condominium - Answer- b. Townhouse
While many community associations are indeed townhouse communities,
not all such developments are necessarily associations. A community
association is defined in terms of ownership rights—not architectural style.
Adoption of the annual budget is an example of which of the
following type of resolution?
a. policy resolution
b. administrative resolution
,c. special resolution
d. general resolution - Answer- d. general
resolution
,General resolutions involve routine events such as adoption of the annual
budget.
True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community. - Answer- True
The governing documents define the rights and obligations of both the
community association and its owners, create a binding relationship
between each owner and the community association, and establish the
mechanisms for governing and funding the community association's
operations.
True or false. According to the general hierarchy of authority for governing
documents, the bylaws would control in a conflict with the recorded map,
plat, or plan. - Answer- False
As a general rule, documents lower in the hierarchy of authority cannot
conflict with or change the terms of those above them. The recorded map,
plat, or plan is above the bylaws in the hierarchy, and therefore would
prevail in such a conflict.
Complete the following sentence: A __________ state statute is one that
applies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform - Answer- c.
specific
A specific state statute is one that applies only to one or more types of
community associations. For example, most states have a condominium act
which provides for the establishment and operation of condominiums as
legal entities. These acts vary in terms of their complexity—the simplest
ones just allow for the creation of
condominiums.
True or false. A proprietary lease or occupancy agreement in a cooperative
defines the member or stockholder's rights and obligations in relation to the
living unit. - Answer- True
In a cooperative, the proprietary lease or occupancy agreement serves
generally the same purpose as the declaration, CC&R, or master deed in
other community
associations. Among other things, the proprietary lease or occupancy
agreement identifies the premises that the stockholder is permitted to occupy
, exclusively, defines the term of the lease and the rent that is payable by the
stockholder, and establishes the powers and obligations of the cooperative's
board of directors, including assessment rights.
Management Exam Questions with
correct Answers
Each of the following are key characteristics of community associations
EXCEPT: a. Mandatory lien-based economic charges or assessments are
levied on each owner in order to operate and maintain the community
association.
b. Membership in the community association is mandatory and automatic for
all owners.
c. A requirement of community association ownership is serving on
the board of directors.
d. Certain documents bind all owners to be governed by the community
association. - Answer- c. A requirement of community association ownership
is serving on the board of directors.
This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve
on the board of directors; however, the overall success on the community
is dependent upon the members' involvement its affairs.
True or False. The primary purpose of a community association is to
provide for the governance, business, and communal aspects of the
association. - Answer- True
Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
residential real estate development, and through the establishment of a
system of property rights, binding covenants and restrictions, and rules
and regulations.
Each of the following are basic types of residential community associations
EXCEPT: a. Planned community
b. Townhouse
c. Cooperative
d. Condominium - Answer- b. Townhouse
While many community associations are indeed townhouse communities,
not all such developments are necessarily associations. A community
association is defined in terms of ownership rights—not architectural style.
Adoption of the annual budget is an example of which of the
following type of resolution?
a. policy resolution
b. administrative resolution
,c. special resolution
d. general resolution - Answer- d. general
resolution
,General resolutions involve routine events such as adoption of the annual
budget.
True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community. - Answer- True
The governing documents define the rights and obligations of both the
community association and its owners, create a binding relationship
between each owner and the community association, and establish the
mechanisms for governing and funding the community association's
operations.
True or false. According to the general hierarchy of authority for governing
documents, the bylaws would control in a conflict with the recorded map,
plat, or plan. - Answer- False
As a general rule, documents lower in the hierarchy of authority cannot
conflict with or change the terms of those above them. The recorded map,
plat, or plan is above the bylaws in the hierarchy, and therefore would
prevail in such a conflict.
Complete the following sentence: A __________ state statute is one that
applies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform - Answer- c.
specific
A specific state statute is one that applies only to one or more types of
community associations. For example, most states have a condominium act
which provides for the establishment and operation of condominiums as
legal entities. These acts vary in terms of their complexity—the simplest
ones just allow for the creation of
condominiums.
True or false. A proprietary lease or occupancy agreement in a cooperative
defines the member or stockholder's rights and obligations in relation to the
living unit. - Answer- True
In a cooperative, the proprietary lease or occupancy agreement serves
generally the same purpose as the declaration, CC&R, or master deed in
other community
associations. Among other things, the proprietary lease or occupancy
agreement identifies the premises that the stockholder is permitted to occupy
, exclusively, defines the term of the lease and the rent that is payable by the
stockholder, and establishes the powers and obligations of the cooperative's
board of directors, including assessment rights.
