M100 Community Association Management Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With Elaborated 100% Correct Complete Solutions
Guaranteed Pass First Attempt!! Current Update!!
Each of the following are key characteristics of community
associations EXCEPT:
c. A requirement of community association ownership is
a. Mandatory lien-based economic charges or assess-
serving on the board of directors.
ments are levied on each owner in order to operate and
maintain the community association.
This is one of the three key characteristics common to all
b. Membership in the community association is manda-
community associations. Members of an association are
tory and automatic for all owners.
not legally required to serve on the board of directors;
c. A requirement of community association ownership is
however, the overall success on the community is depen-
serving on the board of directors.
dent upon the members' involvement its attairs.
d. Certain documents bind all owners to be governed by
the community association.
True
Providing for the governance, business, and communal
True or False. The primary purpose of a community as-
aspects of the association is achieved by administering,
sociation is to provide for the governance, business, and
maintaining, and enhancing a residential real estate de-
communal aspects of the association.
velopment, 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 com- b. Townhouse
munity associations EXCEPT:
a. Planned community While many community associations are indeed town-
b. Townhouse house communities, not all such developments are nec-
c. Cooperative essarily associations. A community association is defined
d. Condominium in terms of ownership rights—not architectural style.
Adoption of the annual budget is an example of which of
the following type of resolution? d. general resolution
a. policy resolution
b. administrative resolution General resolutions involve routine events such as adop-
c. special resolution tion of the annual budget.
d. general resolution
,M100 Community Association Management Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With Elaborated 100% Correct Complete Solutions
Guaranteed Pass First Attempt!! Current Update!!
True
The governing documents define the rights and obliga-
True or false. The purpose of a community association's
tions of both the community association and its owners,
governing documents is to provide for the legal structure
create a binding relationship between each owner and
and operation of the community.
the community association, and establish the mechanisms
for governing and funding the community association's
operations.
False
True or false. According to the general hierarchy of author- As a general rule, documents lower in the hierarchy of
ity for governing documents, the bylaws would control in authority cannot conflict with or change the terms of those
a conflict with the recorded map, plat, or plan. above them. The recorded map, plat, or plan is above the
bylaws in the hierarchy, and therefore would prevail in
such a conflict.
c. specific
Complete the following sentence: A state
statute is one that applies only to one or more types of
A specific state statute is one that applies only to one or
community associations.
more types of community associations. For example, most
a. general
states have a condominium act which provides for the
b. complex
establishment and operation of condominiums as legal
c. specific
entities. These acts vary in terms of their complexity—the
d. uniform
simplest ones just allow for the creation of condominiums.
True
In a cooperative, the proprietary lease or occupancy
True or false. A proprietary lease or occupancy agreement
agreement serves generally the same purpose as the
in a cooperative defines the member or stockholder's
declaration, CC&R, or master deed in other community
rights and obligations in relation to the living unit.
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 assess-
ment rights.
Complete the following sentence: The bring
d. articles of incorporation
the community association into existence, define its basic
purposes and powers, and indicate whether stock will be
A community association's corporate structure is estab-
issued.
lished when a developer sets up the association. The de-
a. recorded map, plat, or plan
veloper files articles of incorporation—sometimes called
b. declaration, CC&Rs, or master deed
a corporate charter—with the appropriate state corpora-
c. proprietary lease or occupancy agreement
tion agency.
d. articles of incorporation
False
True or False. The public ottering statement is a governing
The public ottering statement is not a governing doc-
document, as it often distributed along with the governing
ument; instead, it is simply a disclosure statement that
documents.
provides information on the community association to
prospective buyers.
Each of the following legal sources specify management
a. survey data
authority and responsibilities for community associations
EXCEPT:
All three types of legal sources—state statutes, governing
a. survey data
documents, and court decisions—specify the authority or
b. state statutes
power of ditterent parties in a community association and
c. community association governing documents
the responsibilities or duties of the ditterent parties.
d. court decisions
False
True or false. The basic authority in a community associa-
The basic authority in a community association lies with
tion lies with the developer.
the owners. In order for the association to govern ettec-
tively the owners elect a board of directors to act on their
, behalf. The governing documents delegate most of the
association's decision-making powers to a board.
Complete the following sentence: The board of directors
b. fiduciary duty
in a community association has a to act
in the best interests and for the benefit of the community
The board's fiduciary duty has two components: (1) Board
as a whole.
members are required to avoid conflicts of interest and
a. bond
acting out of self-interest. (2) They are also required to
b. fiduciary duty
act as reasonable people in managing the association's
c. ballot
attairs.
d. quorum
True
True or false. The "business judgment rule" means that if
Through judicial decision, a substantial body of law has
a board has exercised reasonable business judgment in
developed concerning the standards to which directors
making a decision, the court will generally not consider
must conform while conducting a community association's
the board negligent in its fiduciary duty.
attairs. Many courts apply the "business judgment rule" to
a board's actions.
Which of the following community association committees
d. mandatory committees
typically are assigned responsibilities related to elections,
nominations, and architectural standards?
A mandatory committee is one that is required by the
a. standing committees
governing documents. Mandatory committees typically
b. professional committees
are assigned responsibilities related to elections, nomina-
c. ad hoc committees
tions, and architectural standards.
d. mandatory committees
False
True or false. The role of the professional community as-
The professional community association manager is
sociation manager is to make all decisions for the associa-
charged with assisting the board of directors' decision
tion and to delegate information-gathering and fact-find-
making process by means of providing information-gath-
ing support to the board of directors.
ering and fact-finding support, implementing the deci-
sions of the board; and administering the services, pro-
Includes Frequently Tested Questions With Elaborated 100% Correct Complete Solutions
Guaranteed Pass First Attempt!! Current Update!!
Each of the following are key characteristics of community
associations EXCEPT:
c. A requirement of community association ownership is
a. Mandatory lien-based economic charges or assess-
serving on the board of directors.
ments are levied on each owner in order to operate and
maintain the community association.
This is one of the three key characteristics common to all
b. Membership in the community association is manda-
community associations. Members of an association are
tory and automatic for all owners.
not legally required to serve on the board of directors;
c. A requirement of community association ownership is
however, the overall success on the community is depen-
serving on the board of directors.
dent upon the members' involvement its attairs.
d. Certain documents bind all owners to be governed by
the community association.
True
Providing for the governance, business, and communal
True or False. The primary purpose of a community as-
aspects of the association is achieved by administering,
sociation is to provide for the governance, business, and
maintaining, and enhancing a residential real estate de-
communal aspects of the association.
velopment, 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 com- b. Townhouse
munity associations EXCEPT:
a. Planned community While many community associations are indeed town-
b. Townhouse house communities, not all such developments are nec-
c. Cooperative essarily associations. A community association is defined
d. Condominium in terms of ownership rights—not architectural style.
Adoption of the annual budget is an example of which of
the following type of resolution? d. general resolution
a. policy resolution
b. administrative resolution General resolutions involve routine events such as adop-
c. special resolution tion of the annual budget.
d. general resolution
,M100 Community Association Management Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With Elaborated 100% Correct Complete Solutions
Guaranteed Pass First Attempt!! Current Update!!
True
The governing documents define the rights and obliga-
True or false. The purpose of a community association's
tions of both the community association and its owners,
governing documents is to provide for the legal structure
create a binding relationship between each owner and
and operation of the community.
the community association, and establish the mechanisms
for governing and funding the community association's
operations.
False
True or false. According to the general hierarchy of author- As a general rule, documents lower in the hierarchy of
ity for governing documents, the bylaws would control in authority cannot conflict with or change the terms of those
a conflict with the recorded map, plat, or plan. above them. The recorded map, plat, or plan is above the
bylaws in the hierarchy, and therefore would prevail in
such a conflict.
c. specific
Complete the following sentence: A state
statute is one that applies only to one or more types of
A specific state statute is one that applies only to one or
community associations.
more types of community associations. For example, most
a. general
states have a condominium act which provides for the
b. complex
establishment and operation of condominiums as legal
c. specific
entities. These acts vary in terms of their complexity—the
d. uniform
simplest ones just allow for the creation of condominiums.
True
In a cooperative, the proprietary lease or occupancy
True or false. A proprietary lease or occupancy agreement
agreement serves generally the same purpose as the
in a cooperative defines the member or stockholder's
declaration, CC&R, or master deed in other community
rights and obligations in relation to the living unit.
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 assess-
ment rights.
Complete the following sentence: The bring
d. articles of incorporation
the community association into existence, define its basic
purposes and powers, and indicate whether stock will be
A community association's corporate structure is estab-
issued.
lished when a developer sets up the association. The de-
a. recorded map, plat, or plan
veloper files articles of incorporation—sometimes called
b. declaration, CC&Rs, or master deed
a corporate charter—with the appropriate state corpora-
c. proprietary lease or occupancy agreement
tion agency.
d. articles of incorporation
False
True or False. The public ottering statement is a governing
The public ottering statement is not a governing doc-
document, as it often distributed along with the governing
ument; instead, it is simply a disclosure statement that
documents.
provides information on the community association to
prospective buyers.
Each of the following legal sources specify management
a. survey data
authority and responsibilities for community associations
EXCEPT:
All three types of legal sources—state statutes, governing
a. survey data
documents, and court decisions—specify the authority or
b. state statutes
power of ditterent parties in a community association and
c. community association governing documents
the responsibilities or duties of the ditterent parties.
d. court decisions
False
True or false. The basic authority in a community associa-
The basic authority in a community association lies with
tion lies with the developer.
the owners. In order for the association to govern ettec-
tively the owners elect a board of directors to act on their
, behalf. The governing documents delegate most of the
association's decision-making powers to a board.
Complete the following sentence: The board of directors
b. fiduciary duty
in a community association has a to act
in the best interests and for the benefit of the community
The board's fiduciary duty has two components: (1) Board
as a whole.
members are required to avoid conflicts of interest and
a. bond
acting out of self-interest. (2) They are also required to
b. fiduciary duty
act as reasonable people in managing the association's
c. ballot
attairs.
d. quorum
True
True or false. The "business judgment rule" means that if
Through judicial decision, a substantial body of law has
a board has exercised reasonable business judgment in
developed concerning the standards to which directors
making a decision, the court will generally not consider
must conform while conducting a community association's
the board negligent in its fiduciary duty.
attairs. Many courts apply the "business judgment rule" to
a board's actions.
Which of the following community association committees
d. mandatory committees
typically are assigned responsibilities related to elections,
nominations, and architectural standards?
A mandatory committee is one that is required by the
a. standing committees
governing documents. Mandatory committees typically
b. professional committees
are assigned responsibilities related to elections, nomina-
c. ad hoc committees
tions, and architectural standards.
d. mandatory committees
False
True or false. The role of the professional community as-
The professional community association manager is
sociation manager is to make all decisions for the associa-
charged with assisting the board of directors' decision
tion and to delegate information-gathering and fact-find-
making process by means of providing information-gath-
ing support to the board of directors.
ering and fact-finding support, implementing the deci-
sions of the board; and administering the services, pro-
