CMCA EXAM NEWEST VERSION REAL EXAM 270 QUESTIONS AND CORRECT
ANSWERS(VERIFIED ANSWERS)|AGRADE||BRAND NEW VERSION 2026!!
Question 1
If there is a conflict regarding the quorum requirements for a meeting, how is the conflict
resolved?
A) By a majority vote of the Board of Directors
B) By following the provisions in the association's rules and regulations
C) By referring to state statutes
D) By the appointment of an ad hoc committee
E) By a vote of those present at the meeting
Correct Answer: C) By referring to state statutes
Rationale: While governing documents usually outline quorum requirements, state statutes
serve as the superior authority in the hierarchy of laws. If the governing documents are
silent or if they conflict with specific state laws governing non-profit or common interest
communities, the state statute prevails.
Question 2
What is the primary purpose of fidelity insurance for a community association?
A) To ensure the board meets its fiduciary obligations to the members
B) To protect the association from lawsuits regarding environmental damage
C) To cover shortfalls in the reserve accounts due to market fluctuations
D) To allow the association to recover funds lost through employee or board dishonesty
E) To provide health insurance for the community manager
Correct Answer: D) To allow the association to recover funds lost through employee or
board dishonesty
Rationale: Fidelity insurance (often called a fidelity bond) protects the association’s money.
It covers the loss of funds resulting from dishonest acts by those who have access to the
money, including employees, board members, and often the management company.
Question 3
Which functional area of management involves the process of operating, maintaining, repairing,
and replacing common property?
A) Human resources management
B) Risk management
C) Financial management
D) Facilities management
E) Administrative management
Correct Answer: D) Facilities management
Rationale: Facilities management is specifically focused on the physical assets of the
association. It encompasses all tasks required to keep the common areas in good repair,
functioning safely, and aesthetically pleasing to preserve property values.
, 2
Question 4
In the hierarchy of community association documents, what is the significance of a document’s
higher placement?
A) It is more frequently updated than lower documents
B) It contains more specific rules regarding pet weights and colors
C) It is harder for the board to enforce without a court order
D) It carries greater legal weight in a court of law
E) It is the only document that can be amended by the board alone
Correct Answer: D) It carries greater legal weight in a court of law
Rationale: Legal hierarchy (usually Federal/State Law > Declaration/CC&Rs > Articles of
Incorporation > Bylaws > Rules) means that any lower document that conflicts with a
higher document is unenforceable. Courts will always look to the higher-ranking document
to settle disputes.
Question 5
When determining whether to use a contractor or association staff for a project, which set of
requirements would most likely favor choosing a contractor?
A) Low urgency, low cost, and adequate tools are available on-site
B) High urgency, low need for specialized supervision, and simple tasks
C) Low urgency, the need for specialized expertise, and specialized supervision
D) High urgency, low cost, and the need to borrow tools from a neighbor
E) The board wants to give a job to a resident who needs work
Correct Answer: C) Low urgency, the need for specialized expertise, and specialized
supervision
Rationale: Associations typically hire contractors for work that requires expertise or
equipment that the association does not possess in-house. Even if the urgency is low, the
complexity of the task and the need for liability protection make professional contractors
the preferred choice over staff for specialized tasks.
Question 6
Who must be present at an annual association membership meeting to legally conduct business?
A) The treasurer and the secretary only
B) A quorum of the board of directors
C) All members of the board of directors and the manager
D) A quorum of the members (owners)
E) A majority of the board and at least one representative from the management company
Correct Answer: D) A quorum of the members
Rationale: An annual membership meeting is a meeting of the owners, not just the board.
For any business to be legally transacted—such as electing directors or voting on
, 3
amendments—a quorum of the membership must be established as defined by the
governing documents or state law.
Question 7
Under a standard insurance framework, which of the following would typically be covered by a
condominium unit member’s personal insurance policy (HO-6) rather than the association’s
master policy?
A) Wind damage to the structural roof of the building
B) A slip and fall injury in the common area hallway in front of the unit
C) Bodily injury resulting from the association’s use of a community-owned truck
D) Bodily injury due to a slip and fall that occurs within the member's unit
E) Fire damage to the community clubhouse kitchen
Correct Answer: D) Bodily injury due to a slip and fall within a member's unit.
Rationale: The association’s master policy covers the common elements and liability for the
association. The HO-6 policy covers the owner's personal property, improvements to their
unit, and personal liability for incidents occurring within the boundaries of their individual
unit.
Question 8
Community association governing documents and state statutes may require which of the
following professionals to be involved in preparing the association’s annual financial reports?
A) A Certified Public Accountant (CPA)
B) A professional project manager
C) An ad hoc committee of homeowners
D) The local real estate board
E) A structural engineer
Correct Answer: A) A Certified Public Accountant (CPA)
Rationale: To ensure transparency and accuracy, many state laws and association bylaws
mandate that an independent CPA perform an audit, review, or compilation of the
association’s financial records annually. This protects the board from liability and assures
owners that funds are being handled correctly.
Question 9
Which management control is typically used to identify and track all the physical assets of the
association?
A) A monthly maintenance schedule
B) A chart of information for the board
C) A comprehensive inventory
D) A resident satisfaction survey
E) A checklist for the janitorial staff
Correct Answer: C) A comprehensive inventory
, 4
Rationale: An inventory is a specific management control tool used to document the
existence, condition, and location of association property. This is vital for insurance
purposes, maintenance planning, and financial reporting.
Question 10
Which provision in a contract allows the association to end the agreement if a contractor fails to
perform according to the specified terms?
A) Warranty provisions
B) Performance provisions
C) Insurance provisions
D) Default provisions
E) Force Majeure provisions
Correct Answer: D) Default provisions
Rationale: Default provisions define what constitutes a failure to perform (the "default")
and outline the process for the non-defaulting party (the association) to terminate the
contract, often including a "cure period" for the contractor to fix the issue.
Question 11
Where is the most common place to find the specific division of maintenance responsibilities
between an individual owner and the association?
A) The state's non-profit corporation act
B) The plat map or site plan
C) The declaration or CC&Rs
D) The annual budget report
E) The management company's standard contract
Correct Answer: C) The declaration or CC&Rs
Rationale: The Declaration (Covenants, Conditions, and Restrictions) is the primary
document that defines the boundaries of the units and the common elements. It specifies
which components (e.g., windows, balconies, roofs) are the owner’s responsibility and
which belong to the association.
Question 12
At a monthly board meeting, which of the following is not a role of the community manager?
A) Implementing the decisions made by the board
B) Calling for a formal vote on a pending issue
C) Keeping the discussions on target and on the agenda
D) Acting as a resource for information and professional advice
E) Ensuring that the minutes are accurately recorded
Correct Answer: B) Calling for a formal vote on a pending issue
Rationale: The manager acts as an advisor and administrator to the board but is not a
member of the board. Only board members have the authority to make motions and call
ANSWERS(VERIFIED ANSWERS)|AGRADE||BRAND NEW VERSION 2026!!
Question 1
If there is a conflict regarding the quorum requirements for a meeting, how is the conflict
resolved?
A) By a majority vote of the Board of Directors
B) By following the provisions in the association's rules and regulations
C) By referring to state statutes
D) By the appointment of an ad hoc committee
E) By a vote of those present at the meeting
Correct Answer: C) By referring to state statutes
Rationale: While governing documents usually outline quorum requirements, state statutes
serve as the superior authority in the hierarchy of laws. If the governing documents are
silent or if they conflict with specific state laws governing non-profit or common interest
communities, the state statute prevails.
Question 2
What is the primary purpose of fidelity insurance for a community association?
A) To ensure the board meets its fiduciary obligations to the members
B) To protect the association from lawsuits regarding environmental damage
C) To cover shortfalls in the reserve accounts due to market fluctuations
D) To allow the association to recover funds lost through employee or board dishonesty
E) To provide health insurance for the community manager
Correct Answer: D) To allow the association to recover funds lost through employee or
board dishonesty
Rationale: Fidelity insurance (often called a fidelity bond) protects the association’s money.
It covers the loss of funds resulting from dishonest acts by those who have access to the
money, including employees, board members, and often the management company.
Question 3
Which functional area of management involves the process of operating, maintaining, repairing,
and replacing common property?
A) Human resources management
B) Risk management
C) Financial management
D) Facilities management
E) Administrative management
Correct Answer: D) Facilities management
Rationale: Facilities management is specifically focused on the physical assets of the
association. It encompasses all tasks required to keep the common areas in good repair,
functioning safely, and aesthetically pleasing to preserve property values.
, 2
Question 4
In the hierarchy of community association documents, what is the significance of a document’s
higher placement?
A) It is more frequently updated than lower documents
B) It contains more specific rules regarding pet weights and colors
C) It is harder for the board to enforce without a court order
D) It carries greater legal weight in a court of law
E) It is the only document that can be amended by the board alone
Correct Answer: D) It carries greater legal weight in a court of law
Rationale: Legal hierarchy (usually Federal/State Law > Declaration/CC&Rs > Articles of
Incorporation > Bylaws > Rules) means that any lower document that conflicts with a
higher document is unenforceable. Courts will always look to the higher-ranking document
to settle disputes.
Question 5
When determining whether to use a contractor or association staff for a project, which set of
requirements would most likely favor choosing a contractor?
A) Low urgency, low cost, and adequate tools are available on-site
B) High urgency, low need for specialized supervision, and simple tasks
C) Low urgency, the need for specialized expertise, and specialized supervision
D) High urgency, low cost, and the need to borrow tools from a neighbor
E) The board wants to give a job to a resident who needs work
Correct Answer: C) Low urgency, the need for specialized expertise, and specialized
supervision
Rationale: Associations typically hire contractors for work that requires expertise or
equipment that the association does not possess in-house. Even if the urgency is low, the
complexity of the task and the need for liability protection make professional contractors
the preferred choice over staff for specialized tasks.
Question 6
Who must be present at an annual association membership meeting to legally conduct business?
A) The treasurer and the secretary only
B) A quorum of the board of directors
C) All members of the board of directors and the manager
D) A quorum of the members (owners)
E) A majority of the board and at least one representative from the management company
Correct Answer: D) A quorum of the members
Rationale: An annual membership meeting is a meeting of the owners, not just the board.
For any business to be legally transacted—such as electing directors or voting on
, 3
amendments—a quorum of the membership must be established as defined by the
governing documents or state law.
Question 7
Under a standard insurance framework, which of the following would typically be covered by a
condominium unit member’s personal insurance policy (HO-6) rather than the association’s
master policy?
A) Wind damage to the structural roof of the building
B) A slip and fall injury in the common area hallway in front of the unit
C) Bodily injury resulting from the association’s use of a community-owned truck
D) Bodily injury due to a slip and fall that occurs within the member's unit
E) Fire damage to the community clubhouse kitchen
Correct Answer: D) Bodily injury due to a slip and fall within a member's unit.
Rationale: The association’s master policy covers the common elements and liability for the
association. The HO-6 policy covers the owner's personal property, improvements to their
unit, and personal liability for incidents occurring within the boundaries of their individual
unit.
Question 8
Community association governing documents and state statutes may require which of the
following professionals to be involved in preparing the association’s annual financial reports?
A) A Certified Public Accountant (CPA)
B) A professional project manager
C) An ad hoc committee of homeowners
D) The local real estate board
E) A structural engineer
Correct Answer: A) A Certified Public Accountant (CPA)
Rationale: To ensure transparency and accuracy, many state laws and association bylaws
mandate that an independent CPA perform an audit, review, or compilation of the
association’s financial records annually. This protects the board from liability and assures
owners that funds are being handled correctly.
Question 9
Which management control is typically used to identify and track all the physical assets of the
association?
A) A monthly maintenance schedule
B) A chart of information for the board
C) A comprehensive inventory
D) A resident satisfaction survey
E) A checklist for the janitorial staff
Correct Answer: C) A comprehensive inventory
, 4
Rationale: An inventory is a specific management control tool used to document the
existence, condition, and location of association property. This is vital for insurance
purposes, maintenance planning, and financial reporting.
Question 10
Which provision in a contract allows the association to end the agreement if a contractor fails to
perform according to the specified terms?
A) Warranty provisions
B) Performance provisions
C) Insurance provisions
D) Default provisions
E) Force Majeure provisions
Correct Answer: D) Default provisions
Rationale: Default provisions define what constitutes a failure to perform (the "default")
and outline the process for the non-defaulting party (the association) to terminate the
contract, often including a "cure period" for the contractor to fix the issue.
Question 11
Where is the most common place to find the specific division of maintenance responsibilities
between an individual owner and the association?
A) The state's non-profit corporation act
B) The plat map or site plan
C) The declaration or CC&Rs
D) The annual budget report
E) The management company's standard contract
Correct Answer: C) The declaration or CC&Rs
Rationale: The Declaration (Covenants, Conditions, and Restrictions) is the primary
document that defines the boundaries of the units and the common elements. It specifies
which components (e.g., windows, balconies, roofs) are the owner’s responsibility and
which belong to the association.
Question 12
At a monthly board meeting, which of the following is not a role of the community manager?
A) Implementing the decisions made by the board
B) Calling for a formal vote on a pending issue
C) Keeping the discussions on target and on the agenda
D) Acting as a resource for information and professional advice
E) Ensuring that the minutes are accurately recorded
Correct Answer: B) Calling for a formal vote on a pending issue
Rationale: The manager acts as an advisor and administrator to the board but is not a
member of the board. Only board members have the authority to make motions and call
