M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM LATEST 2025 WITH CORRECT QUESTIONS AND
DETAILED ANSWERS/ALREADY GRADED A+
community association - CORRECT ANSWER-legal entity in which the owners
enjoy the protection, enhancement, maintenance & preservation of their homes
& property
community association has 3 defining characteristics - CORRECT ANSWER-
Membership in the community is mandatory & automatic for all owners; certain
association docs bind the owner & the association to each other through
mandated actions; mandatory lien-based assessments (maintenance fees) are
levied on each owner in order to operate & maintain the community assocation
lien - CORRECT ANSWER-legal claim by one party (community association) on
the property of another (delinquent owner) to obtain the payment of a debt or
the satisfaction of an obligation.
What does the lien do? - CORRECT ANSWER-Placing a lien on an owner's
property protects the community association's interests. It encourages payment
,of the debt. Consequence of lien is the owner cant sell or transfer the unit
without settling the debt.
Purpose of a community assocation - CORRECT ANSWER-to provide for the
community, business, & governance aspects of the association. This is achieved by
administering, maintaining, & enhancing a residential real estate development,
and through the establishment of a system of property rights, binding covenants
& restrictions, & rules & regulations.
3 basic types of residential community associations (1) - CORRECT ANSWER-
Planned community; owner owns his unit ; community owns any common areas
such as tennis courts, for the use & benefit of the lot owners
second type - CORRECT ANSWER-Condominium; owner owns his living unit &
an undivided interest in the common elements of the community. Each owner
owns a % of the common elements, which consist of everything except the living
units.
third type - CORRECT ANSWER-Cooperative; person owns stock or membership;
holds a proprietary lease or occupancy agreement for his living unit
Proprietary lease or occupancy agreement - CORRECT ANSWER-defines the
member or stockholders' rights & obligations in relation to the living unit. The
community association owns all of the real estate as a not-for-profit corporation.
,3 types of residential community associations can exist by themselves or can be
group in clusters called: - CORRECT ANSWER-Master or umbrella associations:
consists of more than 1 residential community association.
Second type - CORRECT ANSWER-Mixed-use development-consists of a mixture
of residential & commercial &/or industrial uses grouped together.
Third type - CORRECT ANSWER-55 & older communities; must have 1 person
who is 55 of age or older living in at least 80% of occupied units.
Sources of legal obligations for a community association - CORRECT ANSWER-
Federal, state & local statues, regulations, & case law
second source - CORRECT ANSWER-legal documents unique to the community
association that bind the association & its owners
third source - CORRECT ANSWER-lender requirements; requirements set by
secondary institutions (ex; FHA, Fannie Mae)
fourth source - CORRECT ANSWER-standards set by professional bodies; ex:
auditing standards set the American Institute of CPAs
Types of Federal Laws applying to community associations - CORRECT ANSWER-
Equal employment opportunity commission (EEOC); federal govt prohibits
, discrimination against otherwise qualified people in hiring, promotion, dismissal,
based on specific characteristics like race & ethnicity, age, color, gender, religion
second federal law - CORRECT ANSWER-Fair Debt Collection Practices act:
protect debtors from unscrupulous debt collects & to impose a consistent & fair
method to collect debts.
third federal law - CORRECT ANSWER-Fair Labor & standards act (FSLA); dictates
standards for the basic minimum wage & overtime pay
fourth federal law - CORRECT ANSWER-Family & Medical Leave Act (FMLA);
requires employers of 50 or more employees to provide up to 12 weeks of
unpaid, job-protected leave to eligible employees for birth or adoption of a child
or serious illness of the employee or spouse, child or parent.
fifth federal law - CORRECT ANSWER-Federal Insurance contributions act (FICA)
sixth federal law - CORRECT ANSWER-Occupational Safety & Health Act (OSHA)
7th federal law - CORRECT ANSWER-US Bankruptcy code
8th federal law - CORRECT ANSWER-Fair housing Act
EXAM LATEST 2025 WITH CORRECT QUESTIONS AND
DETAILED ANSWERS/ALREADY GRADED A+
community association - CORRECT ANSWER-legal entity in which the owners
enjoy the protection, enhancement, maintenance & preservation of their homes
& property
community association has 3 defining characteristics - CORRECT ANSWER-
Membership in the community is mandatory & automatic for all owners; certain
association docs bind the owner & the association to each other through
mandated actions; mandatory lien-based assessments (maintenance fees) are
levied on each owner in order to operate & maintain the community assocation
lien - CORRECT ANSWER-legal claim by one party (community association) on
the property of another (delinquent owner) to obtain the payment of a debt or
the satisfaction of an obligation.
What does the lien do? - CORRECT ANSWER-Placing a lien on an owner's
property protects the community association's interests. It encourages payment
,of the debt. Consequence of lien is the owner cant sell or transfer the unit
without settling the debt.
Purpose of a community assocation - CORRECT ANSWER-to provide for the
community, business, & governance aspects of the association. This is achieved by
administering, maintaining, & enhancing a residential real estate development,
and through the establishment of a system of property rights, binding covenants
& restrictions, & rules & regulations.
3 basic types of residential community associations (1) - CORRECT ANSWER-
Planned community; owner owns his unit ; community owns any common areas
such as tennis courts, for the use & benefit of the lot owners
second type - CORRECT ANSWER-Condominium; owner owns his living unit &
an undivided interest in the common elements of the community. Each owner
owns a % of the common elements, which consist of everything except the living
units.
third type - CORRECT ANSWER-Cooperative; person owns stock or membership;
holds a proprietary lease or occupancy agreement for his living unit
Proprietary lease or occupancy agreement - CORRECT ANSWER-defines the
member or stockholders' rights & obligations in relation to the living unit. The
community association owns all of the real estate as a not-for-profit corporation.
,3 types of residential community associations can exist by themselves or can be
group in clusters called: - CORRECT ANSWER-Master or umbrella associations:
consists of more than 1 residential community association.
Second type - CORRECT ANSWER-Mixed-use development-consists of a mixture
of residential & commercial &/or industrial uses grouped together.
Third type - CORRECT ANSWER-55 & older communities; must have 1 person
who is 55 of age or older living in at least 80% of occupied units.
Sources of legal obligations for a community association - CORRECT ANSWER-
Federal, state & local statues, regulations, & case law
second source - CORRECT ANSWER-legal documents unique to the community
association that bind the association & its owners
third source - CORRECT ANSWER-lender requirements; requirements set by
secondary institutions (ex; FHA, Fannie Mae)
fourth source - CORRECT ANSWER-standards set by professional bodies; ex:
auditing standards set the American Institute of CPAs
Types of Federal Laws applying to community associations - CORRECT ANSWER-
Equal employment opportunity commission (EEOC); federal govt prohibits
, discrimination against otherwise qualified people in hiring, promotion, dismissal,
based on specific characteristics like race & ethnicity, age, color, gender, religion
second federal law - CORRECT ANSWER-Fair Debt Collection Practices act:
protect debtors from unscrupulous debt collects & to impose a consistent & fair
method to collect debts.
third federal law - CORRECT ANSWER-Fair Labor & standards act (FSLA); dictates
standards for the basic minimum wage & overtime pay
fourth federal law - CORRECT ANSWER-Family & Medical Leave Act (FMLA);
requires employers of 50 or more employees to provide up to 12 weeks of
unpaid, job-protected leave to eligible employees for birth or adoption of a child
or serious illness of the employee or spouse, child or parent.
fifth federal law - CORRECT ANSWER-Federal Insurance contributions act (FICA)
sixth federal law - CORRECT ANSWER-Occupational Safety & Health Act (OSHA)
7th federal law - CORRECT ANSWER-US Bankruptcy code
8th federal law - CORRECT ANSWER-Fair housing Act
