M-100 – THE ESSENTIALS OF COMMUNITY ASSOCIATION
MANAGEMENT (COMPLETE COURSE REVIEW) 200 Practice
Questions with Answers and Explanations
PART 1: GOVERNANCE AND LEGAL FOUNDATIONS (Qs 1–55)
1. Each of the following are key characteristics of a community association EXCEPT:
- A) Mandatory lien-based economic charges or assessments are levied on each owner to operate and
maintain the community association
- B) Membership in the community association is mandatory and automatic for all owners
- C) A requirement of community association ownership is attending board meetings
- D) Certain documents bind all owners to be governed by the community
Answer: C
Explanation: The three key characteristics of a community association are: (1) mandatory membership,
(2) mandatory lien-based assessments, and (3) binding governing documents. Attending board meetings
is NOT a requirement of ownership; board meetings are open to members but attendance is voluntary.
2. True or False: The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association.
- A) True
- B) False
Answer: A (True)
Explanation: The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association. This 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.
,3. Each of the following are basic types of residential community associations EXCEPT:
- A) Planned community
- B) Townhouse
- C) Cooperative
- D) Condominium
Answer: B
Explanation: 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 planned community, condominium, and
cooperative.
4. Which document brings the community association into existence, defines its basic purposes and
powers, and indicates whether stock will be issued?
- A) Recorded map, plat, or plan
- B) Declaration, CC&Rs, or master deed
- C) Articles of Incorporation
- D) Bylaws
Answer: C
Explanation: The Articles of Incorporation bring the association into existence as a legal entity, define
its basic purposes and powers, and indicate whether stock will be issued.
5. In the general hierarchy of governing documents, which document typically has the highest authority?
- A) Bylaws
- B) Board resolutions
- C) Recorded map, plat, or plan
- D) Rules and regulations
, Answer: C
Explanation: The hierarchy of governing documents generally places the recorded map, plat, or plan at
the highest level, followed by the Declaration/CC&Rs/Master Deed, then Articles of Incorporation,
Bylaws, and finally Board Resolutions and Rules & Regulations. Documents lower in the hierarchy cannot
conflict with those above them.
6. According to the general hierarchy of authority for governing documents, the bylaws would control in
a conflict with the recorded map, plat, or plan.
- A) True
- B) False
Answer: B (False)
Explanation: The recorded map, plat, or plan is above the bylaws in the hierarchy. As a general rule,
documents lower in the hierarchy of authority cannot conflict with or change the terms of those above
them.
7. A __________ state statute applies only to one or more types of community associations.
- A) General
- B) Complex
- C) Specific
- D) Uniform
Answer: C
Explanation: A specific state statute applies only to one or more types of community associations. For
example, most states have a condominium act which provides for the establishment and operation of
condominiums as legal entities.
, 8. True or False: A proprietary lease or occupancy agreement in a cooperative defines the member or
stockholder's rights and obligations in relation to the living unit.
- A) True
- B) False
Answer: A (True)
Explanation: In a cooperative, the proprietary lease or occupancy agreement serves generally the same
purpose as the declaration, CC&Rs, or master deed in other community associations. It defines the
member or stockholder's rights and obligations in relation to the living unit.
9. What are the three basic types of community associations?
- A) Single-family, townhouse, and apartment
- B) Planned community, condominium, and cooperative
- C) Master, umbrella, and mixed-use
- D) Nonprofit, for-profit, and municipal
Answer: B
Explanation: The three basic types of community associations are: Planned Community (owners own
their lot/unit and community owns common areas), Condominium (individual owns unit and undivided
interest in common elements), and Cooperative (individual owns stock/membership and holds a
proprietary lease/occupancy agreement).
10. In a condominium, ownership is characterized by:
- A) Owning the lot and the common areas jointly
- B) Owning a unit and an undivided percentage interest in the common elements
- C) Owning stock in the corporation that owns the property
- D) Renting the unit from the association
Answer: B
MANAGEMENT (COMPLETE COURSE REVIEW) 200 Practice
Questions with Answers and Explanations
PART 1: GOVERNANCE AND LEGAL FOUNDATIONS (Qs 1–55)
1. Each of the following are key characteristics of a community association EXCEPT:
- A) Mandatory lien-based economic charges or assessments are levied on each owner to operate and
maintain the community association
- B) Membership in the community association is mandatory and automatic for all owners
- C) A requirement of community association ownership is attending board meetings
- D) Certain documents bind all owners to be governed by the community
Answer: C
Explanation: The three key characteristics of a community association are: (1) mandatory membership,
(2) mandatory lien-based assessments, and (3) binding governing documents. Attending board meetings
is NOT a requirement of ownership; board meetings are open to members but attendance is voluntary.
2. True or False: The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association.
- A) True
- B) False
Answer: A (True)
Explanation: The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association. This 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.
,3. Each of the following are basic types of residential community associations EXCEPT:
- A) Planned community
- B) Townhouse
- C) Cooperative
- D) Condominium
Answer: B
Explanation: 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 planned community, condominium, and
cooperative.
4. Which document brings the community association into existence, defines its basic purposes and
powers, and indicates whether stock will be issued?
- A) Recorded map, plat, or plan
- B) Declaration, CC&Rs, or master deed
- C) Articles of Incorporation
- D) Bylaws
Answer: C
Explanation: The Articles of Incorporation bring the association into existence as a legal entity, define
its basic purposes and powers, and indicate whether stock will be issued.
5. In the general hierarchy of governing documents, which document typically has the highest authority?
- A) Bylaws
- B) Board resolutions
- C) Recorded map, plat, or plan
- D) Rules and regulations
, Answer: C
Explanation: The hierarchy of governing documents generally places the recorded map, plat, or plan at
the highest level, followed by the Declaration/CC&Rs/Master Deed, then Articles of Incorporation,
Bylaws, and finally Board Resolutions and Rules & Regulations. Documents lower in the hierarchy cannot
conflict with those above them.
6. According to the general hierarchy of authority for governing documents, the bylaws would control in
a conflict with the recorded map, plat, or plan.
- A) True
- B) False
Answer: B (False)
Explanation: The recorded map, plat, or plan is above the bylaws in the hierarchy. As a general rule,
documents lower in the hierarchy of authority cannot conflict with or change the terms of those above
them.
7. A __________ state statute applies only to one or more types of community associations.
- A) General
- B) Complex
- C) Specific
- D) Uniform
Answer: C
Explanation: A specific state statute applies only to one or more types of community associations. For
example, most states have a condominium act which provides for the establishment and operation of
condominiums as legal entities.
, 8. True or False: A proprietary lease or occupancy agreement in a cooperative defines the member or
stockholder's rights and obligations in relation to the living unit.
- A) True
- B) False
Answer: A (True)
Explanation: In a cooperative, the proprietary lease or occupancy agreement serves generally the same
purpose as the declaration, CC&Rs, or master deed in other community associations. It defines the
member or stockholder's rights and obligations in relation to the living unit.
9. What are the three basic types of community associations?
- A) Single-family, townhouse, and apartment
- B) Planned community, condominium, and cooperative
- C) Master, umbrella, and mixed-use
- D) Nonprofit, for-profit, and municipal
Answer: B
Explanation: The three basic types of community associations are: Planned Community (owners own
their lot/unit and community owns common areas), Condominium (individual owns unit and undivided
interest in common elements), and Cooperative (individual owns stock/membership and holds a
proprietary lease/occupancy agreement).
10. In a condominium, ownership is characterized by:
- A) Owning the lot and the common areas jointly
- B) Owning a unit and an undivided percentage interest in the common elements
- C) Owning stock in the corporation that owns the property
- D) Renting the unit from the association
Answer: B
