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CAM - Community Association Manager License GA
Practice Exam | 300 Expert Questions & Accurate
Solutions and Detailed Rationales |100% Verified | A+
Rated (MOST RECENT!!!)
1. In which year was the Georgia Real Estate Commission (GREC) created, and for what purpose?
A) 1975 – To regulate property tax assessments
B) 1925 – To protect the public from harmful acts of real estate brokers
C) 1996 – To establish the CAM license
D) 1980 – To enforce the Fair Housing Act
Correct Answer: B
The license law was enacted in 1925 and the GREC was created to protect the public from harmful acts of real estate
brokers.
2. How many members serve on the Georgia Real Estate Commission (GREC), and what is the requirement
regarding real estate licensure?
A) 5 members, all must be licensed real estate brokers
B) 6 members, one of whom is not real estate licensed (a public member)
C) 7 members, all must be licensed community association managers
D) 4 members, no license requirement
Correct Answer: B
GREC holds 6 members, 1 of which is not real estate licensed (a public member).
3. Which of the following is NOT an authority granted to the Georgia Real Estate Commission (GREC)?
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A) Issue or deny real estate licenses
B) Set commission rates for real estate transactions
C) Discipline licensees by revoking, suspending, warning, or fining
D) Set rules and regulations and establish fees
Correct Answer: B
GREC can issue or deny licenses, discipline licensees, and set rules and fees, but does not set commission rates for
real estate transactions.
4. A newly licensed Community Association Manager in Georgia is reviewing fiduciary responsibilities while
managing a large homeowners association. Which of the following best describes the fiduciary duty owed by a
CAM to the association?
A) Acting primarily in the manager’s personal financial interest
B) Managing association affairs with loyalty, honesty, and reasonable care for the benefit of the association
C) Prioritizing vendor relationships over association policies
D) Avoiding all communication with board members regarding finances
Correct Answer: B
A CAM owes fiduciary duties that require acting in the best interest of the association with loyalty, honesty, and
competence.
5. A Georgia community association board is preparing its annual operating budget and requests assistance from the
CAM in estimating future expenses. What is the primary purpose of an association budget?
A) To eliminate the need for owner assessments permanently
B) To estimate income and expenses necessary for operating and maintaining the community
C) To guarantee profit distributions to board members
D) To avoid compliance with governing documents
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Correct Answer: B
Association budgets help plan and manage financial resources needed for operations and maintenance.
6. Which document primarily governs the powers and responsibilities of a community association?
A) Purchase agreement
B) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
C) Appraisal report
D) Lease agreement
Correct Answer: B
The CC&Rs are the foundational governing documents for most community associations, establishing legal
obligations, use restrictions, and governance authority.
7. What is the primary responsibility of a Community Association Manager (CAM)?
A) Setting property tax rates
B) Approving zoning changes
C) Representing individual homeowners in disputes
D) Implementing board policies and managing daily operations
Correct Answer: D
A CAM executes the policies set by the board of directors and handles daily operational functions such as
maintenance coordination, vendor management, and financial oversight.
8. Which financial statement shows income and expenses over a specific period?
A) Balance sheet
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B) Reserve study
C) Income statement (profit and loss statement)
D) General ledger
Correct Answer: C
The income statement summarizes revenues and expenses over a defined period, showing operational performance.
A balance sheet shows financial position, and a reserve study evaluates long-term capital needs.
9. What is the primary purpose of reserve funds in an association?
A) Daily operating expenses
B) Board member compensation
C) Legal settlements
D) Major future repairs and replacements
Correct Answer: D
Reserve funds are designated for long-term capital expenditures such as roof replacement, paving, and structural
repairs, not for routine operating expenses.
10. Which of the following individuals can perform CAM services WITHOUT a license? (Select all that apply)
A) A developer
B) A CPA (certified public accountant)
C) A licensed practicing attorney
D) Anyone hired on a full-time basis by the HOA
Correct Answer: A, B, C, D
CAM - Community Association Manager License GA
Practice Exam | 300 Expert Questions & Accurate
Solutions and Detailed Rationales |100% Verified | A+
Rated (MOST RECENT!!!)
1. In which year was the Georgia Real Estate Commission (GREC) created, and for what purpose?
A) 1975 – To regulate property tax assessments
B) 1925 – To protect the public from harmful acts of real estate brokers
C) 1996 – To establish the CAM license
D) 1980 – To enforce the Fair Housing Act
Correct Answer: B
The license law was enacted in 1925 and the GREC was created to protect the public from harmful acts of real estate
brokers.
2. How many members serve on the Georgia Real Estate Commission (GREC), and what is the requirement
regarding real estate licensure?
A) 5 members, all must be licensed real estate brokers
B) 6 members, one of whom is not real estate licensed (a public member)
C) 7 members, all must be licensed community association managers
D) 4 members, no license requirement
Correct Answer: B
GREC holds 6 members, 1 of which is not real estate licensed (a public member).
3. Which of the following is NOT an authority granted to the Georgia Real Estate Commission (GREC)?
,2|Page
A) Issue or deny real estate licenses
B) Set commission rates for real estate transactions
C) Discipline licensees by revoking, suspending, warning, or fining
D) Set rules and regulations and establish fees
Correct Answer: B
GREC can issue or deny licenses, discipline licensees, and set rules and fees, but does not set commission rates for
real estate transactions.
4. A newly licensed Community Association Manager in Georgia is reviewing fiduciary responsibilities while
managing a large homeowners association. Which of the following best describes the fiduciary duty owed by a
CAM to the association?
A) Acting primarily in the manager’s personal financial interest
B) Managing association affairs with loyalty, honesty, and reasonable care for the benefit of the association
C) Prioritizing vendor relationships over association policies
D) Avoiding all communication with board members regarding finances
Correct Answer: B
A CAM owes fiduciary duties that require acting in the best interest of the association with loyalty, honesty, and
competence.
5. A Georgia community association board is preparing its annual operating budget and requests assistance from the
CAM in estimating future expenses. What is the primary purpose of an association budget?
A) To eliminate the need for owner assessments permanently
B) To estimate income and expenses necessary for operating and maintaining the community
C) To guarantee profit distributions to board members
D) To avoid compliance with governing documents
,3|Page
Correct Answer: B
Association budgets help plan and manage financial resources needed for operations and maintenance.
6. Which document primarily governs the powers and responsibilities of a community association?
A) Purchase agreement
B) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
C) Appraisal report
D) Lease agreement
Correct Answer: B
The CC&Rs are the foundational governing documents for most community associations, establishing legal
obligations, use restrictions, and governance authority.
7. What is the primary responsibility of a Community Association Manager (CAM)?
A) Setting property tax rates
B) Approving zoning changes
C) Representing individual homeowners in disputes
D) Implementing board policies and managing daily operations
Correct Answer: D
A CAM executes the policies set by the board of directors and handles daily operational functions such as
maintenance coordination, vendor management, and financial oversight.
8. Which financial statement shows income and expenses over a specific period?
A) Balance sheet
, 4|Page
B) Reserve study
C) Income statement (profit and loss statement)
D) General ledger
Correct Answer: C
The income statement summarizes revenues and expenses over a defined period, showing operational performance.
A balance sheet shows financial position, and a reserve study evaluates long-term capital needs.
9. What is the primary purpose of reserve funds in an association?
A) Daily operating expenses
B) Board member compensation
C) Legal settlements
D) Major future repairs and replacements
Correct Answer: D
Reserve funds are designated for long-term capital expenditures such as roof replacement, paving, and structural
repairs, not for routine operating expenses.
10. Which of the following individuals can perform CAM services WITHOUT a license? (Select all that apply)
A) A developer
B) A CPA (certified public accountant)
C) A licensed practicing attorney
D) Anyone hired on a full-time basis by the HOA
Correct Answer: A, B, C, D
