Florida Community Association Manager Licensing Exam Already Solved 100%

Community Association (Definition) - Answer a residential homeowners' association in which membership is a condition of ownership (mandatory) of a unit in a planned unit development, or of a lot for a home or a mobile home, or of a townhouse, villa, condominium, cooperative, or other residential unit which is part of a residential development scheme and which is authorized to impose a fee (assessment) which may become a lien on the parcel. Assessment - Answer The amount of money a unit or parcel owner pays for their share of the expenses of the community association. The statute allows association to file an assessment lien against the unit or parcel if unpaid. Condominium - Answer that form of ownership of real property created pursuant to this chapter (Section 718), which is comprised entirely of units that may be owned by one or more persons, and in which there is, appurtenant to each unit, an undivided share in common elements What does a condo association own? What is deeded in the association's name? - Answer Nothing. NOTHING. The association is responsible for the insurance and maintenance, but it has no deed in its name. Who owns the common elements in a condominium association? - Answer All the owners own common elements jointly. Cooperative (definition) - Answer that form of ownership of real property wherein legal title is vested in a corporation or other entity and the beneficial use is evidenced by an ownership interest in the association and a lease or other muniment of title or possession granted by the association as the owner of all the cooperative property. In a cooperative, how many deeds are there? - Answer There is one deed. Title to all the real estate is owned by the corporation. Each shareholder receives a Shareholder's Certificate as evidence of their capital contribution to the corporation. In what type of community association would an owner have a shareholder's certificate? - Answer Cooperative. Owner has a shareholder's certificate if they are part of the cooperative. Shareholder's Certificate (definition) - Answer What is the evidence of an owner's capital contribution to the cooperative corporation. This entitles the owner to sign a Proprietary Lease with the corporation for the exclusive use of the air space for their unit or pad. Proprietary Lease (definition) - Answer gives an owner (in a coop) the exclusive use of the air space for their unit or pad. Homeowners' Association (definition) - Answer a Florida corporation responsible for the operation of a community or a mobile home subdivision in which the voting membership is made up of parcel owners or their agents, or a combination thereof, and in which membership is a mandatory condition of parcel ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the parcel. The term "homeowners' association" does not include a community development district (CDD) or other similar taxing district created pursuant to statute. Who owns deeds in an HOA? - Answer Each parcel owner has a deed to their individual parcel. The corporation has common areas or property deeded in the corporation's name. Who owns the dirt on a parcel in an HOA? - Answer The homeowner owns the dirt on THEIR parcel. HOA owns the dirt on COMMON parcels. Chapter 607 (definition) - Answer Florida For Profit Corporate Act that governs For Profit corporations Chapter 617 (definition) - Answer Florida Not For Profit Corporate Act that governs Not For Profit corporations Statute 718 - Answer Governs Condominiums Statute 719 - Answer Governs Cooperatives Statute 720 - Answer Governs Homeowners' Associations Statute 721 - Answer Governs Timeshare Plans Common Elements (definition) - Answer the portions of the condominium property not included in the units Examples of Common Elements - Answer drywall, plumbing, electrical inside the walls, clubhouse, pool, streets, etc. In which type of corporation (community association) would the term "common elements" be used? - Answer Condominium Limited Common Elements (definition) - Answer those common elements which are reserved for the use of a certain unit or units to the exclusion of all other units (ie. assigned parking space, private balcony, private elevator, etc.) Examples of Limited Common Elements - Answer balcony, private elevator, patio connected to a unit, assigned parking space, storage unit, boat slip, etc. Common Areas (definition) - Answer the portions of the cooperative property not included in the units (ie. clubhouse, pool, streets) For what type of association is the term "Common Areas" used? - Answer Cooperative. Limited Common Areas (definition) - Answer those common areas which are reserved for the use of a certain cooperative unit or units to the exclusion of other units (ie. balcony, private elevator, patio connected to the unit, etc.) Examples of Limited Common Areas - Answer balcony, private elevator, patio connected to the unit, assigned parking space, storage unit, boat slip, etc. Association Property (definition) - Answer all real property within a community which is owned or leased by an association or dedicated for use or maintenance by the association or its members. Short Version: property shared by all the owners in a homeowners' association (also referred to as common property or common area) Examples of Association Property (common areas or common property) - Answer Pool, clubhouse, streets, park, entrance feature, etc. Who owns the paint, tile, and carpet in a condominium? - Answer The homeowner. The homeowner owns the air space from the drywall and floor inwards. Who owns the drywall and floor baseboards/concrete in a condominium? - Answer EVERYONE. Every owner in the condo owns these common elements. In a Cooperative, what deeds/certificates does an owner possess? - Answer Their building deed (ie. mobile home deed), Shareholders Certificate (for proof they made capital contribution), and their Proprietary Lease (so they have the right to their specific space) If someone lives in a cooperative community, but isn't a Shareholder, what deeds to they possess? - Answer Their building deed (ie. mobile home deed), and a rental agreement with the cooperative so they RENT their space that their mobile home is on. Or they RENT the space their unit is in/on. Voting Interest (definition) - Answer An owner/member in an association. What governing documents can be changed to allow associations to impose rules or regulations for the use of common elements/areas? - Answer usually the Proprietary Lease or Bylaws Who can adopt new rules and regulations? - Answer The Board of Directors (AKA Board of Administration) Any fee charged for the use of common areas (ie. pool passes or gate keys) must be approved by... - Answer a majority vote of the members (or allowed for in the governing documents) "Big Vote" - Answer majority vote of members "Little Vote" - Answer majority vote of members present (quorum normally has to be met) A vote is not required to assess fees for exclusive use of common elements/areas, such as... - Answer rental of the clubhouse for a private party Where is the term "unit" used? - Answer Condominium Where is the term "parcel" used? - Answer Homeowners' Assoc. Where is the term "share" used? - Answer Cooperative Appurtenance (definition) - Answer additional rights or accessory rights (privileges) that go with the ownership of property in a community association and include: -Undivided share in common elements and common surplus -Exclusive rights to the common elements as provided in the declarations -Exclusive easement for use of the airspace occupied by the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time -Membership in the association designated in the declaration -other appurtenances as provided in the declaration Examples of "other appurtenances" include: - Answer Use of a golf course membership, ability to rent your home/unit, and potentially a view Covenant (definition) - Answer a commitment, agreement, or contract that grants a right or imposes a restriction on the real estate property or its owner. Covenants and restrictions maintain the quality of the property and lifestyle of the community. These covenants run with the LAND When purchasing a condo unit, cooperative share, or parcel, owners and their family members and guests agree to occupy, use, and maintain their property in accordance with... - Answer the covenants and restrictions contained in the documents of the community What document's provisions create an elaborate contract that binds the owners to the association, the owners to each other, and the association to the owners? - Answer Covenants What do covenants do? - Answer make membership in the association mandatory, impose financial obligations on the owners that pass to future owners, and provide requirements for the operations of the corporation. Due Process (definition) - Answer the board of directors will follow the requirements in the governing documents to ensure equitable compliance to the community restrictions and rules Who has the right to vote? - Answer All unit owners, shareholders, and parcel owners When can you restrict a member's right to vote? - Answer When the owner's account is delinquent over 90 days. This covers Under what conditions can an owner opt out of bulk information or internet services? - Answer hearing impaired, sight impaired, receiving SSI, or receiving food assistance If a resident pays the provider directly for services, can they be denied access to franchised, licensed, or certificated cable or video service providers? - Answer No. They cannot opt out of bulk services, but they cannot be denied use of another service on their own contract. Who is responsible for management of a residential community association? - Answer Board of directors Name three ways the board of directors may choose to manage the association. - Answer -Self-managed: when the board divides up management, maintenance, and operation duties/responsibilities among themselves -Hire a management company to perform maintenance, mgmt, and operation of the association pursuant to a mgmt contract -Hire a CAM to be full or part time employee (or independent contractor) for the corporation pursuant to an employment agreement What is the mission statement for all community associations? - Answer to protect the property and its value, provide for the maintenance of the common property, and enforce the restrictions contained in the governing documents Reference: Citations from the Florida Statues (F.S.) are listed by chapter, section, paragraph number and appear like...? - Answer Chapter 468 Section 431 Subparagraph (1) Looks like this: 468.431(1) Reference: Citations from the Florida Administrative Code (F.A.C.) are listed by rule and section or paragraph number like... - Answer Chapter 61E-14 Paragraph 2.001 Looks like this: Rule 61E-14-2.001 Sample Question: The definition of a community association includes which of the following: A) A residential or commercial development whether a condominium, cooperative, or homeowners' association. B) A development where membership is mandatory and which is authorized to impose a fee on owners. C) A development where the owners may opt out of the membership prior to signing the contract for sale. D) A development that places the maintenance and operations functions solely on the developer. - Answer B: A development where membership is mandatory and which is authorized to impose a fee on owners. Sample Question: What is the property shared by the unit owners called in a condominium? A) Common areas B) Limited Common Elements C) Common elements D) Limited Common Property - Answer C: Common Elements Condo = Elements Coop = Area HOA = property Sample Question: Purchasers of a condominium, their family, and guests, agree to all of the following except: A) To occupy and use the property in accordance with the documents B) To maintain their units as set forth in the covenants C) In the case of violations of the covenants, to submit to due process D) To waive their right to access any other cable television service except that provided by the association's bulk contract. - Answer D: To waive their right to access any other cable television service except that provided by the association's bulk contract Sample Question: Which of the following is not an appurtenance? A) Voting rights B) Membership in the corporation C) Golf course membership D) Exclusive easement for the use of the airspace occupied by the unit - Answer C: Golf course membership. This MAY be an "other appurtenance", but it isn't a given. Sample Q: The FL Statutes place the responsibility of management of a community association on the: A) Officers B) Board of directors C) Licensed manager D) All the owners collectively - Answer B: Board of directors Sample Q: Due to the economic crunch, the board of directors at In the Red Condominiums decides to charge residents' guests a fee to use the pool and cabana (showers and restrooms) in order to make up some of the budget deficit. The fee: A) Must be allowed in the governing documents B) Is a violation of the discrimination laws contained in the Fair Housing Act C) Is legal if the notice of the board meeting was properly noticed D) Is legal so long as the revenue is tied back to the pool expense item in the budget - Answer A: Must be allowed in the governing documents. This is an item that would need a "Big Vote" (majority of membership vote) to pass if it isn't in the governing documents. Sample Q: A resident is receiving food assistance from DCF. Which applies? A) The resident may discontinue paying for his share of the communication services, information services, or Internet services. B) The resident may request a 10% reduction in his assessments C) The resident is not entitled to an exemption in assessments of any kind D) The resident may petition the DBPR for a refund of part of his assessments - Answer A: May discontinue paying for his share of the communication, info, or internet services Appurtenance (definition) - Answer A privilege or a piece of minor property that goes with a principal piece of the property. They are accessory rights which are inherent in the ownership of a unit in a condominium or cooperative. Part VIII Chapter 468 is the statute requiring... (synopsis) - Answer licensing of individuals and management companies Section 468.432 (detailed definition): - Answer A person shall not manage or hold herself or himself out to the public as being able to manage a community association in this state unless she or he is licensed by the department. Section 468.431(2) states (detailed definition): - Answer "Community association management" means any one of the following practices requiring substantial specialized knowledge, judgment, and managerial skill when done for remuneration and when the association or associations (cumulative) served contain more than 10 units or have an annual budget or budgets (cumulative) in excess of $100,000.00: -controlling or disbursing funds of a community association -preparing budgets or other financial documents -assisting in the noticing or conduct of community association meetings -determining the number of days required for statutory notices -collecting amounts due to the association before filing of a civil action -calculating the votes required for a quorum or to approve a proposition or amendment -completing forms related to the mgmt of an association that have been created by statute or by a state agency -drafting meeting notices and agendas -calculating and preparing certificates of assessment and estoppel certificates -responding to requests for certificate assessments or estoppels -negotiating monetary or performance terms of a contract subject to approval by an association -drafting prearbitration demands -coordinating or performing maintenance for real or personal property and other related routine services involved in the operation of a community association -complying with the association's governing documents and the requirements of law as necessary to perform such practices Examples of remuneration: - Answer payment in the form of money or reimbursement in the form of getting to live on-site for free or at a reduced rate, reduced utilities, etc You do NOT need a CAM license if... - Answer You are a board member of the HOA and are not receiving remuneration for your services OR you are performing only clerical or ministerial functions under the supervision of a CAM Community association management firm (definition) - Answer a corporation, llc, partnership, trust, association, sole proprietorship, or other similar orgatization engaging in the gusiness of community association management for the purpose of providing any of the CAM services Community association manager (definition) - Answer a natural person who is licensed pursuant to the statute to perform community association management services DBPR stands for: - Answer Department of Business and Professional Regulations and Division of Professions Chapter 455 - Answer statutory provisions for the DBPR DBPR regulates... - Answer certain professions in the State of Florida Division of Professions: - Answer part of the DBPR, regulates CAM and CAM Firms. The licensing law was instituted in 1988. To qualify to become a CAM, you must: - Answer -Be at least 18 years old -Good moral character (personal history of honesty, fairness, and respect for rights of others and for laws of the land) -submit fingerprints -pass exam -required education hours Regulatory Council of Community Association Managers is... - Answer created within the DBPR/Division of Professions to assist the DBPR in carrying out the duties and authorities conferred upon the Department relating to community association management The council may adopt rules relating to the licensure examination, continuing education requirements, continuing education providers, fees, and professional practice standards to assist the department in carrying out its duties and authorities. What does the Regulatory Council of Community Association Managers do? - Answer -Receive input regarding issues of concern with respect to community association management and recommendations for changes in applicable laws. -Review, evaluate, and advise the division concerning revisions and adoption of rules affecting community association management -Recommend improvements, if needed, in the education programs offered by the division. The Regulatory Council of Community Association Managers consists of: - Answer Seven members appointed by the Governor and confirmed by the Senate. Five of the members shall be CAMs, one of whom may be a CAM employed by a timeshare managing entity with an active license for 5 years. The other 2 members must not be or ever have been connected with the business of community association management. They are appointed by the governor for terms of 4 years and serve until their successors are appointed. License periods for individual CAMs: - Answer October 1 through September 30 of even numbered years. Rule 61E14-4.4.001, F.A.C., states (with regards to continuing education for license renewal): - Answer -2 hours of legal update seminar for year 1 (1LU) -2 hours of legal update seminar for year 2 (2LU) -4 hrs insurance and financial mgmt topics relating to community mgmt (IFM) -4 hrs on the operation of the association's physical property (OPP) -4 hrs on human resources topics related to disaster preparedness, employee relations, communication skills, etc (HR) -4 hrs of additional instruction in any area described above (ELE) License periods for Management companies: - Answer October 1 through September 30 of ODD numbered years Rule 61E14-1.001, F.A.C., states (with regards to CAM applicants): - Answer all CAM applicants must complete 18 in-person classroom hours (of 50 min. each) within 12 months prior to the date of examination When do you not have to have continuing education hours for CAM? - Answer When you have been licensed for less than 24 months. To reactivate an inactive CAM license, what must one do? - Answer Complete one cycle of continuing education hours (20 hours) Statutes provide the range and parameter for rules while the Division does what... - Answer provides code specifics with regards to the statutes that provide a wider range/parameter of rule CAM Firm responsible for more than 10 units or a budget of $100,000 or greater must be licensed under Chapter 468. What requirements must be met? - Answer -Application on a form approved by the department -licensure fees -designate a CAM on the application that will respond to inquiries and investigations -notify department of any changes to application information within 30 days Professional Practice Standards (FL Statute) - Answer Chapter 468 Says a CAM or CAM Firm are deemed to act as agent on behalf of a community association as principal within the scope of authority authorized in this chapter or by written contract. CAMs and CAM Firms must abide by this chapter (468) loyally, skillfully, and diligently; dealing honestly and fairly; in good faith; with care and full disclosure to the community association; accounting for all funds; and not charging unreasonable or excessive fees. A CAM or CAM Firm cannot be held accountable for an act or omission that is a result of an instruction or direction of the community association. Standards of Professional Conduct (FL Administrative Code) - Answer DBPR/Division of Professions gives the Regulatory Council of Community Association Managers the power to create rules for managers' standards of professional conduct. The rules are found in the FL Administrative Code 61E14-2.001 Standards of Professional Conduct. Defines all their standards of conduct. -Says a CAM cannot withhold possession of the association's official records. Reasonable notice shall extend no later than 10 business days after termination of any management or employment agreement and receipt of a written request from the association. The manager may retain records necessary for up to 20 days to complete an ending financial statement or report. Failure of the association to allow the CAM this access relieves the manager of any further responsibility or liability for preparation of the statement or report. CANNOT WITHHOLD RECORDS! Also can't create false records or fail to maintain records. Florida Statutes (chapters) are the big picture or little picture? - Answer Statutes (chapters) are the BIG picture. Less detail, broader coverage. Florida Administrative Code (rules/code) are the big picture or little picture? - Answer F.A.C. determines the rules UNDER the broader spectrum of the Statutes. These are the "little" picture in that they are more detailed and concerned with how to abide by statutes. Chapter 468 (and parts of 455) standards of professional conduct are discussed in what code/rule? - Answer Rule 61-20.010 : says managers licenses may be fined, suspended, reprimanded, or revoked if found to be in violation Rule 61-20.010 says what about CAM licenses for Managers who violate the standards of professional conduct? - Answer The rule that says managers' licenses may be fined, suspended, reprimanded, or revoked if managers are found to be in violation of professional conduct standards. Unauthorized Practice of Law - Answer CAMs have to be careful not to cross the line into practicing law. CAMs should be careful they are not perceived as giving legal advice to an owner or the board of directors or they could be charged with this. Statutes: Chapter 718 governs what? - Answer Governing statute for Condominiums The Condominium Act is made of how many parts and what are they? - Answer This act is made of 7 parts. Part 1, General Provisions Part 2, Rights and Obligations of Developers Part 3, Rights and Obligations of the Association Part 4, Special Types of ______ Part 5, Regulation and Disclosure Prior to Sale of Residential ______ Part 6, Office of the Ombudsman Part 7, Developer Disclosure Prior to Sale Condominium Act (718), Part 1 says what? - Answer What is the act that says, Part 1, General Provisions -Establishes content of the Declaration and Bylaws -Defines payment responsibility for common expenses -Establishes liability (lien right) for failure to pay common expenses and authorizes the right of the association to collect interest and attorney's fees -Provides procedures to amend association documents -Defines common elements and appurtenances -Provides the rights of owners -Provides for termination of the association Condominium Act, Part 2 says what? - Answer Requires Developer to give a warranty of fitness and merchantability on each unit for 3 years after building unit is in is complete and a manufacturer's warranty for the personal property. Developer must give a building warranty for common components of 3 years, or 1 year after turnover/transition, whichever occurs last, but no more than 5 years. Completion of a building or improvement on a condo means issuance of what? - Answer Issuance of a certificate of occupancy is when a condo building is considered what? Condominium Act, Part 3 says what? - Answer Any maintenance and management agreements signed by the developer-controlled board that are in place at transition may be cancelled by the association with no cancellation penalties, but it requires a 75% of the unit owners OTHER than the developer. Condo Act, Part 4 says what? - Answer Special types of condos: -Leasholds: sets forth provisions for unit owners to purchase leased property (ie. golf course) and prohibits the landlord/owner from including or enforcing rent escalation clauses based on the Consumer Price Index -Conversions: apartments turned into condos -Phase Condos: includes mixed use, must be added within 7 years after recording of the original decs -Multi-condominiums: master association and sub-associations Condo Act, Part 5 says what? - Answer Gives the Division of Florida Condominiums, Timeshares, and Mobile Homes power to enforce and ensure compliance with the Condo Act (718) in these areas during control of the association by the developer: -Development -Construction -Sales -Lease -Ownership -Operation and Management After transition of control to the unit owners, the Division investigates these complaints: -Enforcement -Alterations or additions to common elements -Meetings -Elections -Unit owner access to association records After a condo is turned over to the owners, does the Division of Condos investigate complaints? - Answer The Division of Condos investigates complaints when the board is Developer-controlled and when... Condo Act, Part 5 continued, says... - Answer Creates the Office of Ombudsman that prepares and issues reports and recommendations to the Governor; acts as liaison between the division, unit owners, boards of directors, board members, CAMs, and other affected parties; monitors and reviews procedures and disputes concerning condo elections or meetings; makes recommendations to the division for changes in rules and procedures; provides resources to assist members of boards of directors and officers; encourages and facilitates voluntary meetings with and between unit owners, boards, board members, CAMs, and other affected parties, assists with resolution of disputes. 15% (or 6 units, whichever is greater) can petition the Office of the Ombudsman to appoint an election monitor to attend the annual meeting of the unit owners and conduct the election of directors. How many unit owners (or what percent of owners) does it take to petition the office of the ombudsman to appoint an election monitor to annual member meetings for elections? - Answer 15% or 6 units, whichever is greater Where does a condo owner go to complain about the board? - Answer Division of Condos, Office of Ombudsman There is a filing fee with the Division of Condos for the developer on any unit offered prior to accepting a purchase contract. What is it? - Answer There's a $20 filing fee due to what entity when a developer owns a condo unit? On an initial sale of a condo, how many days does a buyer have to void the sale? - Answer A buyer has 15 days to void the contract after purchase of what? When associations file annually with the division of Condos, what is the filing fee? - Answer Annual Filing fee of $4/unit is due by January 1 to what entity? Annual filing fee of $20.00 and/or $4.00 per unit is due to what entity and under what circumstances? - Answer Initial filing fee by developer and then regular annual filing fee by association is due to the Division of Condos. When a conversion of condo is taking place, how long do renters have to extend their current lease (or get a mortgage and become owners?) - Answer Renters have either 180 days (if less than that is left on their lease) or 270 days (if they had more than 180 days left on their lease) to extend their lease when what is happening? Tenants have the right of _______ to purchase their unit when _____. - Answer Right of first refusal during conversion of condos is allowed to whom? Developer will disclose in conspicuous type (10 pt font) on ___________ whether the developer established reserve accounts, posted a surety bond, or provided like new warranties. - Answer The condominium contract of sale should state in what size font if the developer has established reserve accounts, posted a surety bond, or provided like new warranties? Distressed Condo Relief Act was created to encourage bulk purchases of more than seven units. This act applies to units acquired between what dates? - Answer Units acquired AFTER July 1, 2010, but before July 1, 2018 in bulk are covered by what act? Chapter 719 of Florida Statutes covers what? - Answer The Cooperative Act is what chapter in FL Statutes? In a Cooperative, explain ownership. - Answer Joint ownership of real property where title is vested in the association or corporation and individuals own a share of the corporation is called what? Shareholder's Certificate (looks like a stock certificate) gives the owner what? - Answer Right to lease the unit, pad, or space is given by what document? Same document indicates the individual's share in the corporation. Cooperative Act (719) is made of 6 parts that are the same as what? - Answer The 6 parts of this act are the same as the Condo act (718). The only part NOT included is the Distressed Condominium Act. A Proprietary Lease is signed by ...? - Answer The corporation and the individual sign this document for the exclusive use of a unit, pad, or space. The Homeowners' Association Act (720) was created when? - Answer In 2000, this act was created. An HOA is created by the developer when what document is recorded? - Answer When the Declaration of Covenants is recorded by a developer for parceled land, what is created? When is a condominium association considered to begin? - Answer When the developer records the Covenants and files with the Division of Condominiums, what begins? Division of Condos does not regulate what kind of developer? - Answer Developer in a Homeowners' association isn't regulated by what?