M-100 The Essentials of Community Association Management questions with correct answers

Characteristics of a Community Association - correct answer Mandatory membership Mutually binding documents Lien-based assessments Purposes of a Community Association - correct answer Business - Not for profit Government - Runs like a mini-government Community - Mutual reasons for buying into area 3 Basic Types of Community Associations - correct answer Planned Community - Owners owns his lot/living unit and community owns common areas (tennis courts, basketball courts, etc.). Condominium - Individual owns unit and undivided interest (percentage) in common elements. Cooperative - Individual owns stock or membership in cooperative and holds a proprietary lease/occupancy agreement. Community associations can be grouped into clusters called: - correct answer Master or Umbrella Associations - More than one residential community. Mixed-Use Development - Mixture of residential and commercial. "55 and Older" Communities - 80% of residents are 55+ and at least one per unit. Name the sources of legal obligations for a Community Association - correct answer Federal, state and local statutes, regulations and case law. Governing documents Standards set by professional bodies (AICPA) Lender requirements Types of Federal Law Applying to Community Associations - corre