CMCA EXAM 2023 REAL EXAM-UPDATED
WITH ALL QUESTIONS FROM PAST
ACTUAL EXAMS AND 100% CORRECT
ANSWERS
legally enforceable by the homeowner’s association, unless a specific provision conflicts
with federal, state or local laws
community association - CORRECT ANSWERS-a group of owners who wish to provide
a communal basis for preserving, maintaining, and enhancing their homes and property
condominium - CORRECT ANSWERS-a living unit fully owned by an individual with an
undivided interest in the common elements of the community; the community
association itself owns no real estate as an association
cooperative - CORRECT ANSWERS-wherein an individual owns stock or membership
and holds a proprietary lease or occupancy agreement for his or her living unit
Declaration - CORRECT ANSWERS-used interchangeably with CC & Rs
Governing Documents - CORRECT ANSWERS-documents which provide for the legal
structure and operation of the community
indemnification - CORRECT ANSWERS-to exempt an individual or entity from
responsibility for claims made against the organization and to reimburse the individual
or entity for damages or expenses incurred as a result of such claims
master association - CORRECT ANSWERS-an organization of homeowners in a large
condominium or planned unit development (PUD) which includes representatives from
other, smaller homeowner organizations
mixed use development - CORRECT ANSWERS-a development which is designed to
mix two or more "uses" of land together (i.e. a shopping center which offers office space
for dentists)
planned community - CORRECT ANSWERS-the most common type of community
association, where an owner owns his or her lot and/or living unit and the community
owns any common areas, such as tennis courts and roads for the use and benefit of the
lot owners
proprietary lease - CORRECT ANSWERS-a rental agreement between a cooperative
housing corporation and a shareholder allowing use of a certain unit in the premises
,public offering statement - CORRECT ANSWERS-a disclosure statement prepared by a
developer that contains all material facts about a property offered for sale and that must
be provided to a prospective purchaser in accordance with applicable state or federal
law
resolution - CORRECT ANSWERS-a motion that follows a set format and is formally
adopted by the board of directors
statute - CORRECT ANSWERS-a formal written enactment of a legislative authority that
governs a country, state, city or county
umbrella association - CORRECT ANSWERS-a cluster of community association types
that can include aspects of homeowners associations, condominiums and cooperatives
ad hoc committee - CORRECT ANSWERS-used when an objective needs
consideration and no standing organized group can absorb that issue into its scope;
usually used on a short-term basis, such as temporary oversight of an issue or review of
the standing rules of that community
board liaison system - CORRECT ANSWERS-directors are assigned to certain
committees to guide the committee on Board policy and procedures and to report back
to the Board; directors serving must distinguish their role from the role of the committee
chairperson
business judgement rule - CORRECT ANSWERS-if a board has exercised reasonable
decision making, the court will generally not consider the board negligent in its fiduciary
duty, nor will the court substitute its judgment for that of the board; however, the board
must demonstrate how it has taken care in reaching a decision; it is up to the court to
decide if the board has been reasonable
fiduciary duty - CORRECT ANSWERS-requires directors to act in the best interests and
for the benefit of the corporation, thus the community as a whole; this has two
components: one, the members are required to avoid conflicts of interest and acting out
of self-interest; and two the members are also required to act as reasonable people in
managing the association's affairs
management ethics - CORRECT ANSWERS-the rules or standards that govern the
conduct of members of a profession; the assumption is that the special expertise held
by members of the profession holds them to a high standard of trust by others
management audit - CORRECT ANSWERS-a review of governing documents and
existing policies and procedures, current condition of the property, owner/resident
satisfaction, and fiscal operations; can be done by the board and manager together, or
a third-party management consultant
, management plan - CORRECT ANSWERS-a statement of goals and objectives
approved by the board including the yearly cycle of tasks that should be performed on
the community association's behalf
standing committee - CORRECT ANSWERS-organized groups that have a continued
existence and are not related to the accomplishment of a specific, once-only task (e.g.,
budget and nomination committees)
abstention - CORRECT ANSWERS-when a participant in a vote either does not go to
vote (on Election Day) or, in parliamentary procedure, is present during the vote, but
does not cast a ballot; may be used to indicate the voting individual's ambivalence about
the measure or mild disapproval that does not rise to the level of active opposition they
do not count in tallying the vote; when practiced members are in effect only attending
the meeting to aid in constituting a quorum
action item list - CORRECT ANSWERS-a documented event, task, activity, or action
that needs to take place usually documented in the meeting minutes and are recorded
in the task list of the group—at the next meeting it is reviewed by the group and at that
meeting the facilitator will check the status of these items
agenda - CORRECT ANSWERS-a list of meeting activities in the order in which they
are to be taken up, beginning with the call to order and ending with the adjournment
amend a motion - CORRECT ANSWERS-used to modify another motion; takes three
basic forms: 1) inserting or adding words or paragraphs; 2) striking out words or
paragraphs, and; 3) striking out words and inserting or adding others, or substituting an
entire paragraph or complete resolution for another
ballot - CORRECT ANSWERS-a device used to record choices made by voters; each
voter uses one and are not shared
committee report - CORRECT ANSWERS-highlight matters to be decided and
recommendations to the board; the actions suggested to the board are clearly stated
and should follow a standard format
debate - CORRECT ANSWERS-during an election, a formal discussion involving
opposing candidates vying for the same position
executive session - CORRECT ANSWERS-when a board must hold a discussion or
make decisions of a sensitive nature; the topics that commonly discussed and are
allowable by law usually include personnel issues, contract negotiations and
discussions, lawsuits and other legal matters, and governing document violations
financial report - CORRECT ANSWERS-a report on the association's income and
expense activities including a general ledger, variance, accounts payable, income
statement and balance sheet
WITH ALL QUESTIONS FROM PAST
ACTUAL EXAMS AND 100% CORRECT
ANSWERS
legally enforceable by the homeowner’s association, unless a specific provision conflicts
with federal, state or local laws
community association - CORRECT ANSWERS-a group of owners who wish to provide
a communal basis for preserving, maintaining, and enhancing their homes and property
condominium - CORRECT ANSWERS-a living unit fully owned by an individual with an
undivided interest in the common elements of the community; the community
association itself owns no real estate as an association
cooperative - CORRECT ANSWERS-wherein an individual owns stock or membership
and holds a proprietary lease or occupancy agreement for his or her living unit
Declaration - CORRECT ANSWERS-used interchangeably with CC & Rs
Governing Documents - CORRECT ANSWERS-documents which provide for the legal
structure and operation of the community
indemnification - CORRECT ANSWERS-to exempt an individual or entity from
responsibility for claims made against the organization and to reimburse the individual
or entity for damages or expenses incurred as a result of such claims
master association - CORRECT ANSWERS-an organization of homeowners in a large
condominium or planned unit development (PUD) which includes representatives from
other, smaller homeowner organizations
mixed use development - CORRECT ANSWERS-a development which is designed to
mix two or more "uses" of land together (i.e. a shopping center which offers office space
for dentists)
planned community - CORRECT ANSWERS-the most common type of community
association, where an owner owns his or her lot and/or living unit and the community
owns any common areas, such as tennis courts and roads for the use and benefit of the
lot owners
proprietary lease - CORRECT ANSWERS-a rental agreement between a cooperative
housing corporation and a shareholder allowing use of a certain unit in the premises
,public offering statement - CORRECT ANSWERS-a disclosure statement prepared by a
developer that contains all material facts about a property offered for sale and that must
be provided to a prospective purchaser in accordance with applicable state or federal
law
resolution - CORRECT ANSWERS-a motion that follows a set format and is formally
adopted by the board of directors
statute - CORRECT ANSWERS-a formal written enactment of a legislative authority that
governs a country, state, city or county
umbrella association - CORRECT ANSWERS-a cluster of community association types
that can include aspects of homeowners associations, condominiums and cooperatives
ad hoc committee - CORRECT ANSWERS-used when an objective needs
consideration and no standing organized group can absorb that issue into its scope;
usually used on a short-term basis, such as temporary oversight of an issue or review of
the standing rules of that community
board liaison system - CORRECT ANSWERS-directors are assigned to certain
committees to guide the committee on Board policy and procedures and to report back
to the Board; directors serving must distinguish their role from the role of the committee
chairperson
business judgement rule - CORRECT ANSWERS-if a board has exercised reasonable
decision making, the court will generally not consider the board negligent in its fiduciary
duty, nor will the court substitute its judgment for that of the board; however, the board
must demonstrate how it has taken care in reaching a decision; it is up to the court to
decide if the board has been reasonable
fiduciary duty - CORRECT ANSWERS-requires directors to act in the best interests and
for the benefit of the corporation, thus the community as a whole; this has two
components: one, the members are required to avoid conflicts of interest and acting out
of self-interest; and two the members are also required to act as reasonable people in
managing the association's affairs
management ethics - CORRECT ANSWERS-the rules or standards that govern the
conduct of members of a profession; the assumption is that the special expertise held
by members of the profession holds them to a high standard of trust by others
management audit - CORRECT ANSWERS-a review of governing documents and
existing policies and procedures, current condition of the property, owner/resident
satisfaction, and fiscal operations; can be done by the board and manager together, or
a third-party management consultant
, management plan - CORRECT ANSWERS-a statement of goals and objectives
approved by the board including the yearly cycle of tasks that should be performed on
the community association's behalf
standing committee - CORRECT ANSWERS-organized groups that have a continued
existence and are not related to the accomplishment of a specific, once-only task (e.g.,
budget and nomination committees)
abstention - CORRECT ANSWERS-when a participant in a vote either does not go to
vote (on Election Day) or, in parliamentary procedure, is present during the vote, but
does not cast a ballot; may be used to indicate the voting individual's ambivalence about
the measure or mild disapproval that does not rise to the level of active opposition they
do not count in tallying the vote; when practiced members are in effect only attending
the meeting to aid in constituting a quorum
action item list - CORRECT ANSWERS-a documented event, task, activity, or action
that needs to take place usually documented in the meeting minutes and are recorded
in the task list of the group—at the next meeting it is reviewed by the group and at that
meeting the facilitator will check the status of these items
agenda - CORRECT ANSWERS-a list of meeting activities in the order in which they
are to be taken up, beginning with the call to order and ending with the adjournment
amend a motion - CORRECT ANSWERS-used to modify another motion; takes three
basic forms: 1) inserting or adding words or paragraphs; 2) striking out words or
paragraphs, and; 3) striking out words and inserting or adding others, or substituting an
entire paragraph or complete resolution for another
ballot - CORRECT ANSWERS-a device used to record choices made by voters; each
voter uses one and are not shared
committee report - CORRECT ANSWERS-highlight matters to be decided and
recommendations to the board; the actions suggested to the board are clearly stated
and should follow a standard format
debate - CORRECT ANSWERS-during an election, a formal discussion involving
opposing candidates vying for the same position
executive session - CORRECT ANSWERS-when a board must hold a discussion or
make decisions of a sensitive nature; the topics that commonly discussed and are
allowable by law usually include personnel issues, contract negotiations and
discussions, lawsuits and other legal matters, and governing document violations
financial report - CORRECT ANSWERS-a report on the association's income and
expense activities including a general ledger, variance, accounts payable, income
statement and balance sheet
