M-100 Community Association Management Exam
Predictor | Frequently Tested Questions, Correct
Answers & Expert Explanations 2026/2027
QUESTION 1
What is the typical legal effect of an association's bylaws failing to
specify a quorum percentage for a general membership meeting?
A State corporate statutes usually default to a specified minimum
percentage, such as a majority or ten percent of eligible voters.
B The board of directors is instantly dissolved.
C All prior corporate actions become legally void.
D Meetings can proceed with zero attendees present.
Correct Answer: A State corporate statutes usually default to a specified
minimum percentage, such as a majority or ten percent of eligible
voters.
,Detailed Rationale: When governing documents are silent on specific
quorum rules, state non-profit corporation acts provide default
thresholds to ensure representative governance.
QUESTION 2
How should interest earned on reserve fund bank accounts typically be
allocated?
A Credited directly back into the reserve fund account to maintain long-
term capital compounding and funding integrity
B Transferred entirely into the operating fund for board social events
C Distributed as cash bonuses to individual homeowners annually
D Paid directly to the property management company as a commission
Correct Answer: A Credited directly back into the reserve fund account
to maintain long-term capital compounding and funding integrity
Detailed Rationale: Reserve interest belongs to the reserve fund to
combat inflation and keep long-term capital funding models accurate.
,QUESTION 3
What distinguishes an Appurtenant Easement from an Easement in
Gross?
A Appurtenant easements benefit a specific parcel of land and transfer
automatically with the title, whereas easements in gross benefit a
person or entity without attaching to a specific dominant estate.
B Appurtenant easements are illegal in residential communities.
C Easements in gross can only be used by domestic pets.
D There is no legal distinction between the two types.
Correct Answer: A Appurtenant easements benefit a specific parcel of
land and transfer automatically with the title, whereas easements in
gross benefit a person or entity without attaching to a specific dominant
estate.
Detailed Rationale: Appurtenant easements involve dominant and
servient estates running with the land, while easements in gross belong
to utility companies or individuals independently of land ownership.
, QUESTION 4
What does a General Liability insurance policy primarily protect a
community association against?
A Third-party claims for bodily injury or property damage occurring
within the common elements or areas under association control
B Embezzlement of funds by management personnel
C Structural construction defects built by the original developer
D Personal income tax penalties assessed by the IRS
Correct Answer: A Third-party claims for bodily injury or property
damage occurring within the common elements or areas under
association control
Detailed Rationale: General liability insurance covers third-party slip-
and-fall injuries and property damage claims arising from association-
managed common property.
QUESTION 5
Predictor | Frequently Tested Questions, Correct
Answers & Expert Explanations 2026/2027
QUESTION 1
What is the typical legal effect of an association's bylaws failing to
specify a quorum percentage for a general membership meeting?
A State corporate statutes usually default to a specified minimum
percentage, such as a majority or ten percent of eligible voters.
B The board of directors is instantly dissolved.
C All prior corporate actions become legally void.
D Meetings can proceed with zero attendees present.
Correct Answer: A State corporate statutes usually default to a specified
minimum percentage, such as a majority or ten percent of eligible
voters.
,Detailed Rationale: When governing documents are silent on specific
quorum rules, state non-profit corporation acts provide default
thresholds to ensure representative governance.
QUESTION 2
How should interest earned on reserve fund bank accounts typically be
allocated?
A Credited directly back into the reserve fund account to maintain long-
term capital compounding and funding integrity
B Transferred entirely into the operating fund for board social events
C Distributed as cash bonuses to individual homeowners annually
D Paid directly to the property management company as a commission
Correct Answer: A Credited directly back into the reserve fund account
to maintain long-term capital compounding and funding integrity
Detailed Rationale: Reserve interest belongs to the reserve fund to
combat inflation and keep long-term capital funding models accurate.
,QUESTION 3
What distinguishes an Appurtenant Easement from an Easement in
Gross?
A Appurtenant easements benefit a specific parcel of land and transfer
automatically with the title, whereas easements in gross benefit a
person or entity without attaching to a specific dominant estate.
B Appurtenant easements are illegal in residential communities.
C Easements in gross can only be used by domestic pets.
D There is no legal distinction between the two types.
Correct Answer: A Appurtenant easements benefit a specific parcel of
land and transfer automatically with the title, whereas easements in
gross benefit a person or entity without attaching to a specific dominant
estate.
Detailed Rationale: Appurtenant easements involve dominant and
servient estates running with the land, while easements in gross belong
to utility companies or individuals independently of land ownership.
, QUESTION 4
What does a General Liability insurance policy primarily protect a
community association against?
A Third-party claims for bodily injury or property damage occurring
within the common elements or areas under association control
B Embezzlement of funds by management personnel
C Structural construction defects built by the original developer
D Personal income tax penalties assessed by the IRS
Correct Answer: A Third-party claims for bodily injury or property
damage occurring within the common elements or areas under
association control
Detailed Rationale: General liability insurance covers third-party slip-
and-fall injuries and property damage claims arising from association-
managed common property.
QUESTION 5
