M 100 COMPREHENSIVE STUDY GUIDE
TESTED QUESTIONS AND VERIFIED
ANSWERS
●● community association has 3 defining characteristics
Answer: Membership in the community is mandatory & automatic for
all owners; certain association docs bind the owner & the association to
each other through mandated actions; mandatory lien-based assessments
(maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
●● lien
Answer: legal claim by one party (community association) on the
property of another (delinquent owner) to obtain the payment of a debt
or the satisfaction of an obligation.
●● What does the lien do?
Answer: Placing a lien on an owner's property protects the community
association's interests. It encourages payment of the debt. Consequence
of lien is the owner cant sell or transfer the unit without settling the debt.
●● Purpose of a community assocation
Answer: to provide for the community, business, & governance aspects
of the association. This is achieved by administering, maintaining, &
,enhancing a residential real estate development, and through the
establishment of a system of property rights, binding covenants &
restrictions, & rules & regulations.
●● 3 basic types of residential community associations (1)
Answer: Planned community; owner owns his unit ; community owns
any common areas such as tennis courts, for the use & benefit of the lot
owners
●● second type
Answer: Condominium; owner owns his living unit & an undivided
interest in the common elements of the community. Each owner owns a
% of the common elements, which consist of everything except the
living units.
●● third type
Answer: Cooperative; person owns stock or membership; holds a
proprietary lease or occupancy agreement for his living unit
●● Proprietary lease or occupancy agreement
Answer: defines the member or stockholders' rights & obligations in
relation to the living unit. The community association owns all of the
real estate as a not-for-profit corporation.
, ●● 3 types of residential community associations can exist by
themselves or can be group in clusters called:
Answer: Master or umbrella associations: consists of more than 1
residential community association.
●● Second type
Answer: Mixed-use development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
●● Third type
Answer: 55 & older communities; must have 1 person who is 55 of age
or older living in at least 80% of occupied units.
●● Sources of legal obligations for a community association
Answer: Federal, state & local statues, regulations, & case law
●● second source
Answer: legal documents unique to the community association that bind
the association & its owners
●● third source
Answer: lender requirements; requirements set by secondary institutions
(ex; FHA, Fannie Mae)
TESTED QUESTIONS AND VERIFIED
ANSWERS
●● community association has 3 defining characteristics
Answer: Membership in the community is mandatory & automatic for
all owners; certain association docs bind the owner & the association to
each other through mandated actions; mandatory lien-based assessments
(maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
●● lien
Answer: legal claim by one party (community association) on the
property of another (delinquent owner) to obtain the payment of a debt
or the satisfaction of an obligation.
●● What does the lien do?
Answer: Placing a lien on an owner's property protects the community
association's interests. It encourages payment of the debt. Consequence
of lien is the owner cant sell or transfer the unit without settling the debt.
●● Purpose of a community assocation
Answer: to provide for the community, business, & governance aspects
of the association. This is achieved by administering, maintaining, &
,enhancing a residential real estate development, and through the
establishment of a system of property rights, binding covenants &
restrictions, & rules & regulations.
●● 3 basic types of residential community associations (1)
Answer: Planned community; owner owns his unit ; community owns
any common areas such as tennis courts, for the use & benefit of the lot
owners
●● second type
Answer: Condominium; owner owns his living unit & an undivided
interest in the common elements of the community. Each owner owns a
% of the common elements, which consist of everything except the
living units.
●● third type
Answer: Cooperative; person owns stock or membership; holds a
proprietary lease or occupancy agreement for his living unit
●● Proprietary lease or occupancy agreement
Answer: defines the member or stockholders' rights & obligations in
relation to the living unit. The community association owns all of the
real estate as a not-for-profit corporation.
, ●● 3 types of residential community associations can exist by
themselves or can be group in clusters called:
Answer: Master or umbrella associations: consists of more than 1
residential community association.
●● Second type
Answer: Mixed-use development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
●● Third type
Answer: 55 & older communities; must have 1 person who is 55 of age
or older living in at least 80% of occupied units.
●● Sources of legal obligations for a community association
Answer: Federal, state & local statues, regulations, & case law
●● second source
Answer: legal documents unique to the community association that bind
the association & its owners
●● third source
Answer: lender requirements; requirements set by secondary institutions
(ex; FHA, Fannie Mae)
