GEORGIA COMMUNITY ASSOCIATION
MANAGER CAM LICENSE EXAMINATION
150 REAL ESTATE AND ASSOCIATION
LAW SCENARIOS WITH DETAILED
CORRECT ANSWERS WITH RATIONALES
CORRECT VERIFIED ANSWERS GRADE
A+ QUALITY (INSTANT DOWNLOAD)
Georgia Community Association Manager (CAM) License
Examination
1. A community association manager (CAM) in Georgia is reviewing
the financial options for a 200-unit condominium association that
needs to replace all roofing systems within the next fiscal year. The
total projected cost is $400,000, and the association's current
reserve account holds only $50,000 allocated for roofing. If the
Board of Directors wishes to avoid borrowing funds or utilizing
long-term bank financing, which action must be executed under
the Georgia Condominium Act to legally secure the remaining
balance?
A. The Board can unilaterally increase the regular monthly
assessments by 400% for the next three consecutive months.
B. The Board must draft and pass a special assessment resolution,
subject to any membership voting thresholds specified in the
association's bylaws.
C. The manager can transfer operational cash from the
association’s security deposit escrow account to cover the shortfall.
D. The Board may levy an individual assessment against only the
units on the top floor of each building.
Correct answer: B
Rationale: When reserve funds are inadequate for capital
improvements or major repairs, a special assessment is the
standard mechanism to raise required capital. Under the Georgia
, Condominium Act and typical association governing documents,
special assessments generally require membership disclosure and
approval via a specified voting threshold. Regular assessments
cannot be arbitrarily spiked without following budgetary
amendment protocols, security deposits cannot be converted, and
common element repairs must be shared proportionally rather
than levied only against specific floors.
2. A community association manager is preparing a management
contract for a new homeowner association client in Savannah.
According to the Georgia Real Estate License Law and Rules, since
the manager holds a CAM license and operates under a hiring
broker, which element must be explicitly included in every
property management agreement?
A. A clause guaranteeing that property values will increase by at
least 5% during the contractual term.
B. The specific terms, conditions, and exact financial compensation
to be paid to the broker for management services.
C. A mandatory provision requiring the association to hire only
vendors recommended by the broker's immediate family.
D. A blank power of attorney form allowing the broker to sell
common area parcels without board approval.
Correct answer: B
Rationale: Georgia Real Estate Commission (GREC) rules
mandate that all written management agreements must be
precise, legal contracts that explicitly outline the broker's duties,
the terms and conditions of the agreement, and the exact
mechanisms and amounts of compensation to be paid.
Guarantees on property values, conflicts of interest regarding
family vendors, and arbitrary powers of attorney to sell common
areas are illegal or highly unethical.
3. A homeowner in a Georgia planned development wants to
construct a detached storage shed in their backyard. The
association’s Declaration of Covenants, Conditions, and
Restrictions (CC&Rs) explicitly states that all detached structures
require prior approval from the Architectural Control Committee
(ACC). The homeowner submits a formal application, but the ACC
fails to respond within the 30-day window specified in the bylaws.
What is the legal status of the homeowner's request?
A. The request is automatically deemed denied, and the
, homeowner must wait one calendar year to reapply.
B. The covenant is rendered completely void across the entire
community due to the committee's administrative delay.
C. The application is typically deemed approved by default if the
governing documents state that a failure to act within the specified
timeframe constitutes approval.
D. The homeowner must file a formal quiet title action in the
county superior court before commencing construction.
Correct answer: C
Rationale: Most well-drafted Georgia association covenants
include a "failure to act" clause. This clause specifies that if the
ACC or Board fails to approve or disapprove a completed
application within a set timeframe (e.g., 30 or 45 days), the
application is automatically deemed approved. However, the
structure must still generally comply with other objective
provisions of the covenants (e.g., setback lines).
4. A community association manager is analyzing the insurance
policy requirements for a high-rise condominium association in
Atlanta. The board wants to ensure full compliance with the
Georgia Condominium Act regarding property insurance. The Act
mandates that the association maintain property insurance on the
common elements and units (excluding improvements and
betterments made by individual unit owners) for what minimum
amount?
A. 50% of the actual cash value of the real property, adjusting for
physical depreciation.
B. The total outstanding balance of all primary mortgages held by
the unit owners combined.
C. 100% of the full replacement cost of the insured property at the
time the insurance is purchased and at each renewal date.
D. A flat statutory minimum liability limit of $1,000,000 per
building structure.
Correct answer: C
Rationale: The Georgia Condominium Act (O.C.G.A. § 44-3-107)
explicitly requires that the association maintain property
insurance on the collective structures (common elements and
original unit configurations) for the full replacement cost (100%)
to ensure that the building can be completely rebuilt in the event
of a catastrophic loss, minimizing individual owner liability.
, 5. A CAM license holder is hired to manage a large property owners
association that has opted into the Georgia Property Owners'
Association Act (POA Act). An owner has been delinquent on their
monthly maintenance assessments for over 60 days. The manager
notes that the total past-due balance is $1,200. Under the Georgia
POA Act, what automatic legal advantage does the association
possess regarding this delinquency?
A. The association can immediately seize the owner's personal
vehicle and auction it to recover the debt.
B. A statutory lien is automatically created and perfected upon the
land, without the immediate necessity of recording a separate lien
statement in the county courthouse.
C. The owner’s dynamic voting rights are automatically transferred
permanently to the community association manager.
D. The association can evict the owner from their private residence
and rent the property to a third party.
Correct answer: B
Rationale: One of the primary benefits of opting into the
Georgia POA Act (O.C.G.A. § 44-3-220) is that any assessment
lawful levied becomes a statutory lien on the lot automatically
from the moment it becomes due. While filing a notice in the
county records is best practice for title clarity, the lien itself is
automatically perfected by statute, which grants superior
collection security compared to non-POA associations. [1]
6. A community association manager is balancing the monthly
financial ledgers for a homeowner association. The board requests
a breakdown of the differences between the operating budget and
the reserve budget. How should the manager accurately define the
primary objective of the reserve budget?
A. To fund the daily utility bills, administrative management fees,
and landscaping contract costs.
B. To accumulate capital funds over time for the future repair,
restoration, or replacement of long-term common area
components.
C. To provide a liquid cash account for the payment of holiday
decorations and community social parties.
D. To pay the monthly performance bonuses of the association's
board members and committee chairs.
Correct answer: B
MANAGER CAM LICENSE EXAMINATION
150 REAL ESTATE AND ASSOCIATION
LAW SCENARIOS WITH DETAILED
CORRECT ANSWERS WITH RATIONALES
CORRECT VERIFIED ANSWERS GRADE
A+ QUALITY (INSTANT DOWNLOAD)
Georgia Community Association Manager (CAM) License
Examination
1. A community association manager (CAM) in Georgia is reviewing
the financial options for a 200-unit condominium association that
needs to replace all roofing systems within the next fiscal year. The
total projected cost is $400,000, and the association's current
reserve account holds only $50,000 allocated for roofing. If the
Board of Directors wishes to avoid borrowing funds or utilizing
long-term bank financing, which action must be executed under
the Georgia Condominium Act to legally secure the remaining
balance?
A. The Board can unilaterally increase the regular monthly
assessments by 400% for the next three consecutive months.
B. The Board must draft and pass a special assessment resolution,
subject to any membership voting thresholds specified in the
association's bylaws.
C. The manager can transfer operational cash from the
association’s security deposit escrow account to cover the shortfall.
D. The Board may levy an individual assessment against only the
units on the top floor of each building.
Correct answer: B
Rationale: When reserve funds are inadequate for capital
improvements or major repairs, a special assessment is the
standard mechanism to raise required capital. Under the Georgia
, Condominium Act and typical association governing documents,
special assessments generally require membership disclosure and
approval via a specified voting threshold. Regular assessments
cannot be arbitrarily spiked without following budgetary
amendment protocols, security deposits cannot be converted, and
common element repairs must be shared proportionally rather
than levied only against specific floors.
2. A community association manager is preparing a management
contract for a new homeowner association client in Savannah.
According to the Georgia Real Estate License Law and Rules, since
the manager holds a CAM license and operates under a hiring
broker, which element must be explicitly included in every
property management agreement?
A. A clause guaranteeing that property values will increase by at
least 5% during the contractual term.
B. The specific terms, conditions, and exact financial compensation
to be paid to the broker for management services.
C. A mandatory provision requiring the association to hire only
vendors recommended by the broker's immediate family.
D. A blank power of attorney form allowing the broker to sell
common area parcels without board approval.
Correct answer: B
Rationale: Georgia Real Estate Commission (GREC) rules
mandate that all written management agreements must be
precise, legal contracts that explicitly outline the broker's duties,
the terms and conditions of the agreement, and the exact
mechanisms and amounts of compensation to be paid.
Guarantees on property values, conflicts of interest regarding
family vendors, and arbitrary powers of attorney to sell common
areas are illegal or highly unethical.
3. A homeowner in a Georgia planned development wants to
construct a detached storage shed in their backyard. The
association’s Declaration of Covenants, Conditions, and
Restrictions (CC&Rs) explicitly states that all detached structures
require prior approval from the Architectural Control Committee
(ACC). The homeowner submits a formal application, but the ACC
fails to respond within the 30-day window specified in the bylaws.
What is the legal status of the homeowner's request?
A. The request is automatically deemed denied, and the
, homeowner must wait one calendar year to reapply.
B. The covenant is rendered completely void across the entire
community due to the committee's administrative delay.
C. The application is typically deemed approved by default if the
governing documents state that a failure to act within the specified
timeframe constitutes approval.
D. The homeowner must file a formal quiet title action in the
county superior court before commencing construction.
Correct answer: C
Rationale: Most well-drafted Georgia association covenants
include a "failure to act" clause. This clause specifies that if the
ACC or Board fails to approve or disapprove a completed
application within a set timeframe (e.g., 30 or 45 days), the
application is automatically deemed approved. However, the
structure must still generally comply with other objective
provisions of the covenants (e.g., setback lines).
4. A community association manager is analyzing the insurance
policy requirements for a high-rise condominium association in
Atlanta. The board wants to ensure full compliance with the
Georgia Condominium Act regarding property insurance. The Act
mandates that the association maintain property insurance on the
common elements and units (excluding improvements and
betterments made by individual unit owners) for what minimum
amount?
A. 50% of the actual cash value of the real property, adjusting for
physical depreciation.
B. The total outstanding balance of all primary mortgages held by
the unit owners combined.
C. 100% of the full replacement cost of the insured property at the
time the insurance is purchased and at each renewal date.
D. A flat statutory minimum liability limit of $1,000,000 per
building structure.
Correct answer: C
Rationale: The Georgia Condominium Act (O.C.G.A. § 44-3-107)
explicitly requires that the association maintain property
insurance on the collective structures (common elements and
original unit configurations) for the full replacement cost (100%)
to ensure that the building can be completely rebuilt in the event
of a catastrophic loss, minimizing individual owner liability.
, 5. A CAM license holder is hired to manage a large property owners
association that has opted into the Georgia Property Owners'
Association Act (POA Act). An owner has been delinquent on their
monthly maintenance assessments for over 60 days. The manager
notes that the total past-due balance is $1,200. Under the Georgia
POA Act, what automatic legal advantage does the association
possess regarding this delinquency?
A. The association can immediately seize the owner's personal
vehicle and auction it to recover the debt.
B. A statutory lien is automatically created and perfected upon the
land, without the immediate necessity of recording a separate lien
statement in the county courthouse.
C. The owner’s dynamic voting rights are automatically transferred
permanently to the community association manager.
D. The association can evict the owner from their private residence
and rent the property to a third party.
Correct answer: B
Rationale: One of the primary benefits of opting into the
Georgia POA Act (O.C.G.A. § 44-3-220) is that any assessment
lawful levied becomes a statutory lien on the lot automatically
from the moment it becomes due. While filing a notice in the
county records is best practice for title clarity, the lien itself is
automatically perfected by statute, which grants superior
collection security compared to non-POA associations. [1]
6. A community association manager is balancing the monthly
financial ledgers for a homeowner association. The board requests
a breakdown of the differences between the operating budget and
the reserve budget. How should the manager accurately define the
primary objective of the reserve budget?
A. To fund the daily utility bills, administrative management fees,
and landscaping contract costs.
B. To accumulate capital funds over time for the future repair,
restoration, or replacement of long-term common area
components.
C. To provide a liquid cash account for the payment of holiday
decorations and community social parties.
D. To pay the monthly performance bonuses of the association's
board members and committee chairs.
Correct answer: B
