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M100 COMMUNITY ASSOCIATION MANAGEMENT
ACTUAL EXAM PREP 2026 ALL QUESTIONS AND
CORRECT DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK
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 in
order 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 serving on the board of
directors.
d. Certain documents bind all owners to be governed by the community association.:
c. A requirement of community association ownership is serving on the board of directors.
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 on the community is dependent upon the members'
involvement its attairs.
2. True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association.: True
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.
3. Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
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c. Cooperative
d. Condominium: b. Townhouse
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.
4. Adoption of the annual budget is an example of which of the following type
of resolution?
a. policy resolution
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b. administrative resolution
c. special resolution
d. general resolution: d. general resolution
General resolutions involve routine events such as adoption of the annual budget.
5. True or false. The purpose of a community association's governing docu-ments is
to provide for the legal structure and operation of the community.: - True
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.
6. True or false. According to the general hierarchy of authority for governing
documents, the bylaws would control in a conflict with the recorded map, plat, or plan.:
False
As a general rule, documents lower in the hierarchy of authority cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy, and therefore would prevail in such a conflict.
7. Complete the following sentence: A state statute is one that ap-
plies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform: c. specific
A specific state statute is one that 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. These acts vary in terms of
their complexity—the simplest ones just allow for the creation of condominiums.
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.: True
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In a cooperative, the proprietary lease or occupancy agreement serves generally the same purpose as the declaration, CC&R, or master
deed in other community associations. Among other things, the proprietary lease or occupancy agreement identifies the premises
that the stockholder is permitted to occupy exclusively, defines the term of the lease and the rent that is payable by the stockholder,
and establishes the powers and obligations of the cooperative's board of directors, including assessment rights.
9. Complete the following sentence: The bring the community as-
sociation into existence, define its basic purposes and powers, and indicate whether
stock will be issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation: d. articles of incorporation
A community association's corporate structure is established when a developer sets up the association. The developer files articles of
incorporation—sometimes called a corporate charter—with the appropriate state corporation agency.
10. True or False. The public offering statement is a governing document, as it
often distributed along with the governing documents.: False
The public ottering statement is not a governing document; instead, it is simply a disclosure statement that provides information on
the community association to prospective buyers.
11. Each of the following legal sources specify management authority and
responsibilities for community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions: a. survey data
All three types of legal sources—state statutes, governing documents, and court decisions—specify the authority or power of
ditterent parties in a community association and the responsibilities or duties of the ditterent parties.
12. True or false. The basic authority in a community association lies with the
developer.: False
M100 COMMUNITY ASSOCIATION MANAGEMENT
ACTUAL EXAM PREP 2026 ALL QUESTIONS AND
CORRECT DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK
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 in
order 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 serving on the board of
directors.
d. Certain documents bind all owners to be governed by the community association.:
c. A requirement of community association ownership is serving on the board of directors.
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 on the community is dependent upon the members'
involvement its attairs.
2. True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association.: True
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.
3. Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
,2|Page
c. Cooperative
d. Condominium: b. Townhouse
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.
4. Adoption of the annual budget is an example of which of the following type
of resolution?
a. policy resolution
,3|Page
b. administrative resolution
c. special resolution
d. general resolution: d. general resolution
General resolutions involve routine events such as adoption of the annual budget.
5. True or false. The purpose of a community association's governing docu-ments is
to provide for the legal structure and operation of the community.: - True
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.
6. True or false. According to the general hierarchy of authority for governing
documents, the bylaws would control in a conflict with the recorded map, plat, or plan.:
False
As a general rule, documents lower in the hierarchy of authority cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy, and therefore would prevail in such a conflict.
7. Complete the following sentence: A state statute is one that ap-
plies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform: c. specific
A specific state statute is one that 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. These acts vary in terms of
their complexity—the simplest ones just allow for the creation of condominiums.
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.: True
,4|Page
In a cooperative, the proprietary lease or occupancy agreement serves generally the same purpose as the declaration, CC&R, or master
deed in other community associations. Among other things, the proprietary lease or occupancy agreement identifies the premises
that the stockholder is permitted to occupy exclusively, defines the term of the lease and the rent that is payable by the stockholder,
and establishes the powers and obligations of the cooperative's board of directors, including assessment rights.
9. Complete the following sentence: The bring the community as-
sociation into existence, define its basic purposes and powers, and indicate whether
stock will be issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation: d. articles of incorporation
A community association's corporate structure is established when a developer sets up the association. The developer files articles of
incorporation—sometimes called a corporate charter—with the appropriate state corporation agency.
10. True or False. The public offering statement is a governing document, as it
often distributed along with the governing documents.: False
The public ottering statement is not a governing document; instead, it is simply a disclosure statement that provides information on
the community association to prospective buyers.
11. Each of the following legal sources specify management authority and
responsibilities for community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions: a. survey data
All three types of legal sources—state statutes, governing documents, and court decisions—specify the authority or power of
ditterent parties in a community association and the responsibilities or duties of the ditterent parties.
12. True or false. The basic authority in a community association lies with the
developer.: False
