M100 EXAM STUDY GUIDE
Community Association - Answer -Legal entity in which the owners enjoy the
protection, enhancement, maintenance, and preservation of their homes and property
Three defining characteristics of Community Association - Answer -Mandatory
Membership, Mutually Binding Documents, and Lien-Based Assessments
Mandatory Membership - Answer -Membership in the community association is
mandatory and automatic for all owners
Mutually Binding Documents - Answer -Certain association governing documents bind
the owner and the association to each other through mandated actions
Lien-Based Assessments - Answer -Mandatory lien-based assessments (maintenance
fees) are levied on each owner in order to operate and maintain the community
association
Three types of Community Associations - Answer -Planned Community, Condominium,
Cooperative
Planned Community - Answer -The most common type of community association.
Owner owns his/her lot and/or living unit. Community owns any common area for use
and benefit of lot owners
Condominium - Answer -An individual owns: (1) His/Her living unit and (2) An undivided
interest in the common elements of the community. *Each owner owns a percentage of
the common elements
Cooperative - Answer -An individual owns (1) owns stock or membership in the
cooperative, (2) holds a proprietary lease or occupancy agreement for his/her living unit.
*another name is Stock Cooperative
Proprietary lease or occupancy agreement - Answer -The member or stockholders
rights and obligations in relation to the living unit
Specialized community associations - Answer -Master or Umbrella association, mixed-
use development, 55 and older communities
Master or umbrella associations - Answer -Consist of more than one residential
community association
Mixed-use development - Answer -Consists of a mixture of residential and commercial
and/or industrial uses group together. "Live. Work. Play"
, 55 and older communities - Answer -Must have one person who is 55 years of age or
older living in at least 80% of its occupied units
Sources of legal obligation - Answer -(1) Federal, state and local statutes, regulations
and case law (2) legal documents unique to the community association that find the
association in owners (3) lender requirements (4) Standard set professional bodies
Federal laws - Answer -(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC - Answer -The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
FLSA - Answer -The Fair Labor Standards Act dictates standards for the basic
minimum wage and overtime pay
FMLA - Answer -The Family Medical Leave Act provides for unpaid leave for various
medical issues
FICA - Answer -The Federal Insurance Contributions Act governs employee and
employer contributions to Social Security
OSHA - Answer -The Occupational Safety and Health Administration outlines safety
guidelines for employees
Declarations, CC&Rs, or Master Deeds - Answer -(1) Establish the chain of title and
rights of ownership for each piece of real estate, (2) They set up the charter of the
community association and typically detail voting rights remembers using rights of
common property and limits on assessment fees, (3) They legally obligate purchasers of
homes or units to follow them and become binding on all owners once the developer
sells the first homes or unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement - Answer -Defines the member or
stockholders rights and obligations in relation to the living unit in a cooperative
Articles of incorporation - Answer -Documents that establish the corporation, if the
association is incorporated
Bylaws - Answer -Formally adopted regulations for the administration and management
of a community association, such as board member election, member voting rights,
calling and conducting meetings, and duties of the board members
Resolutions - Answer -A motion that follows a set format and is formally adopted by the
Board of Directors
Community Association - Answer -Legal entity in which the owners enjoy the
protection, enhancement, maintenance, and preservation of their homes and property
Three defining characteristics of Community Association - Answer -Mandatory
Membership, Mutually Binding Documents, and Lien-Based Assessments
Mandatory Membership - Answer -Membership in the community association is
mandatory and automatic for all owners
Mutually Binding Documents - Answer -Certain association governing documents bind
the owner and the association to each other through mandated actions
Lien-Based Assessments - Answer -Mandatory lien-based assessments (maintenance
fees) are levied on each owner in order to operate and maintain the community
association
Three types of Community Associations - Answer -Planned Community, Condominium,
Cooperative
Planned Community - Answer -The most common type of community association.
Owner owns his/her lot and/or living unit. Community owns any common area for use
and benefit of lot owners
Condominium - Answer -An individual owns: (1) His/Her living unit and (2) An undivided
interest in the common elements of the community. *Each owner owns a percentage of
the common elements
Cooperative - Answer -An individual owns (1) owns stock or membership in the
cooperative, (2) holds a proprietary lease or occupancy agreement for his/her living unit.
*another name is Stock Cooperative
Proprietary lease or occupancy agreement - Answer -The member or stockholders
rights and obligations in relation to the living unit
Specialized community associations - Answer -Master or Umbrella association, mixed-
use development, 55 and older communities
Master or umbrella associations - Answer -Consist of more than one residential
community association
Mixed-use development - Answer -Consists of a mixture of residential and commercial
and/or industrial uses group together. "Live. Work. Play"
, 55 and older communities - Answer -Must have one person who is 55 years of age or
older living in at least 80% of its occupied units
Sources of legal obligation - Answer -(1) Federal, state and local statutes, regulations
and case law (2) legal documents unique to the community association that find the
association in owners (3) lender requirements (4) Standard set professional bodies
Federal laws - Answer -(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC - Answer -The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
FLSA - Answer -The Fair Labor Standards Act dictates standards for the basic
minimum wage and overtime pay
FMLA - Answer -The Family Medical Leave Act provides for unpaid leave for various
medical issues
FICA - Answer -The Federal Insurance Contributions Act governs employee and
employer contributions to Social Security
OSHA - Answer -The Occupational Safety and Health Administration outlines safety
guidelines for employees
Declarations, CC&Rs, or Master Deeds - Answer -(1) Establish the chain of title and
rights of ownership for each piece of real estate, (2) They set up the charter of the
community association and typically detail voting rights remembers using rights of
common property and limits on assessment fees, (3) They legally obligate purchasers of
homes or units to follow them and become binding on all owners once the developer
sells the first homes or unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement - Answer -Defines the member or
stockholders rights and obligations in relation to the living unit in a cooperative
Articles of incorporation - Answer -Documents that establish the corporation, if the
association is incorporated
Bylaws - Answer -Formally adopted regulations for the administration and management
of a community association, such as board member election, member voting rights,
calling and conducting meetings, and duties of the board members
Resolutions - Answer -A motion that follows a set format and is formally adopted by the
Board of Directors
