Question 1
Each of the following are key characteristics of community associations EXCEPT:
a) Mandatory lien-based economic charges or assessments are levied on each
owner
b) Membership in the community association is mandatory and automatic for all
owners
c) A requirement of community association ownership is serving on the board of
directors
d) Certain documents bind all owners to be governed by the community
association
,-Correct Answer-: c) A requirement of community association ownership is
serving on the board of directors
Rationale: This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve on the
board of directors; however, the overall success of the community is dependent
upon the members' involvement in its affairs. The three actual key characteristics
are: mandatory membership, mandatory lien-based assessments, and governing
documents that bind all owners.
Question 2
True or False: The primary purpose of a community association is to provide for
the governance, business, and communal aspects of the association.
-Correct Answer-: True
Rationale: Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a residential
real estate development, and through the establishment of a system of property
rights, binding covenants and restrictions, and rules and regulations.
,Question 3
Each of the following are basic types of residential community associations
EXCEPT:
a) Planned community
b) Townhouse
c) Cooperative
d) Condominium
-Correct Answer-: b) Townhouse
Rationale: While many community associations are indeed townhouse
communities, not all such developments are necessarily associations. A community
association is defined in terms of ownership rights—not architectural style. The
three basic types are condominiums, cooperatives, and planned communities
(HOAs).
Question 4
Adoption of the annual budget is an example of which of the following type of
resolution?
, a) Policy resolution
b) Administrative resolution
c) Special resolution
d) General resolution
-Correct Answer-: d) General resolution
Rationale: General resolutions involve routine events such as adoption of the
annual budget. These are standard operational matters that boards handle
regularly as part of normal business operations.
Question 5
True or False: The purpose of a community association's governing documents is
to provide for the legal structure and operation of the community.
-Correct Answer-: True
Rationale: The governing documents define the rights and obligations of both the
community association and its owners, create a binding relationship between each
owner and the community association, and establish the mechanisms for
governing and funding the community association's operations.
Each of the following are key characteristics of community associations EXCEPT:
a) Mandatory lien-based economic charges or assessments are levied on each
owner
b) Membership in the community association is mandatory and automatic for all
owners
c) A requirement of community association ownership is serving on the board of
directors
d) Certain documents bind all owners to be governed by the community
association
,-Correct Answer-: c) A requirement of community association ownership is
serving on the board of directors
Rationale: This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve on the
board of directors; however, the overall success of the community is dependent
upon the members' involvement in its affairs. The three actual key characteristics
are: mandatory membership, mandatory lien-based assessments, and governing
documents that bind all owners.
Question 2
True or False: The primary purpose of a community association is to provide for
the governance, business, and communal aspects of the association.
-Correct Answer-: True
Rationale: Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a residential
real estate development, and through the establishment of a system of property
rights, binding covenants and restrictions, and rules and regulations.
,Question 3
Each of the following are basic types of residential community associations
EXCEPT:
a) Planned community
b) Townhouse
c) Cooperative
d) Condominium
-Correct Answer-: b) Townhouse
Rationale: While many community associations are indeed townhouse
communities, not all such developments are necessarily associations. A community
association is defined in terms of ownership rights—not architectural style. The
three basic types are condominiums, cooperatives, and planned communities
(HOAs).
Question 4
Adoption of the annual budget is an example of which of the following type of
resolution?
, a) Policy resolution
b) Administrative resolution
c) Special resolution
d) General resolution
-Correct Answer-: d) General resolution
Rationale: General resolutions involve routine events such as adoption of the
annual budget. These are standard operational matters that boards handle
regularly as part of normal business operations.
Question 5
True or False: The purpose of a community association's governing documents is
to provide for the legal structure and operation of the community.
-Correct Answer-: True
Rationale: The governing documents define the rights and obligations of both the
community association and its owners, create a binding relationship between each
owner and the community association, and establish the mechanisms for
governing and funding the community association's operations.
