Georgia Community Association Manager (CAM) License Practice
Exam verified with correct answers 2026/2027 version with rationale
Question 1
A Community Association Manager (CAM) is primarily responsible for:
A. Selling residential real estate
B. Managing the day-to-day operations of community associations
C. Issuing building permits
D. Conducting home inspections
Correct Answer: B. Managing the day-to-day operations of community associations.
Rationale: A CAM assists the board of directors by managing daily operations, finances,
vendors, maintenance, and administration of community associations.
Question 2
The governing body responsible for establishing policies for a homeowners association is the:
A. Community Association Manager
B. Board of Directors
C. Property Owners
D. Maintenance Committee
Correct Answer: B. Board of Directors.
Rationale: The board is elected by the members and has the authority to govern the association.
Question 3
Which document legally creates a homeowners association?
A. Bylaws
B. Articles of Incorporation
,C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
D. Meeting Minutes
Correct Answer: C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
Rationale: The declaration establishes the association, defines ownership rights, and imposes
restrictions on the property.
Question 4
The primary responsibility for enforcing association rules belongs to the:
A. Community Association Manager
B. Board of Directors
C. Local Police Department
D. County Tax Assessor
Correct Answer: B. Board of Directors.
Rationale: While the CAM administers policies, enforcement authority rests with the board.
Question 5
Which governing document explains how board meetings and elections are conducted?
A. Deed
B. Bylaws
C. Insurance Policy
D. Vendor Contract
Correct Answer: B. Bylaws.
Rationale: Bylaws establish operational procedures for the association.
, Question 6
A CAM owes a fiduciary duty primarily to the:
A. Individual homeowners
B. Vendors
C. Association
D. Mortgage lenders
Correct Answer: C. Association.
Rationale: The manager acts in the best interests of the association while carrying out the
board's directives.
Question 7
Which financial report compares actual income and expenses to planned amounts?
A. Balance Sheet
B. Budget Variance Report
C. Income Tax Return
D. Reserve Study
Correct Answer: B. Budget Variance Report.
Rationale: Variance reports help identify differences between budgeted and actual financial
performance.
Question 8
Reserve funds are primarily used to:
A. Pay monthly utility bills
B. Replace or repair major common-area components
Exam verified with correct answers 2026/2027 version with rationale
Question 1
A Community Association Manager (CAM) is primarily responsible for:
A. Selling residential real estate
B. Managing the day-to-day operations of community associations
C. Issuing building permits
D. Conducting home inspections
Correct Answer: B. Managing the day-to-day operations of community associations.
Rationale: A CAM assists the board of directors by managing daily operations, finances,
vendors, maintenance, and administration of community associations.
Question 2
The governing body responsible for establishing policies for a homeowners association is the:
A. Community Association Manager
B. Board of Directors
C. Property Owners
D. Maintenance Committee
Correct Answer: B. Board of Directors.
Rationale: The board is elected by the members and has the authority to govern the association.
Question 3
Which document legally creates a homeowners association?
A. Bylaws
B. Articles of Incorporation
,C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
D. Meeting Minutes
Correct Answer: C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
Rationale: The declaration establishes the association, defines ownership rights, and imposes
restrictions on the property.
Question 4
The primary responsibility for enforcing association rules belongs to the:
A. Community Association Manager
B. Board of Directors
C. Local Police Department
D. County Tax Assessor
Correct Answer: B. Board of Directors.
Rationale: While the CAM administers policies, enforcement authority rests with the board.
Question 5
Which governing document explains how board meetings and elections are conducted?
A. Deed
B. Bylaws
C. Insurance Policy
D. Vendor Contract
Correct Answer: B. Bylaws.
Rationale: Bylaws establish operational procedures for the association.
, Question 6
A CAM owes a fiduciary duty primarily to the:
A. Individual homeowners
B. Vendors
C. Association
D. Mortgage lenders
Correct Answer: C. Association.
Rationale: The manager acts in the best interests of the association while carrying out the
board's directives.
Question 7
Which financial report compares actual income and expenses to planned amounts?
A. Balance Sheet
B. Budget Variance Report
C. Income Tax Return
D. Reserve Study
Correct Answer: B. Budget Variance Report.
Rationale: Variance reports help identify differences between budgeted and actual financial
performance.
Question 8
Reserve funds are primarily used to:
A. Pay monthly utility bills
B. Replace or repair major common-area components
