COLORADO COMMUNITY ASSOCIATION MANAGER
LICENSING EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A 2026
|INSTANT DONLOAD PDF
1. What is the primary purpose of a Community Association
Manager?
A. To enforce criminal law in communities
B. To manage finances and operations of community
associations
C. To replace the board of directors
D. To sell real estate within the association
Rationale: A CAM oversees administrative, financial, and
operational functions but does not replace the board or
enforce criminal law.
Correct Answer: B
2. Which document governs the operations of a homeowners
association (HOA)?
A. Federal tax code
B. Declaration of Covenants, Conditions, and Restrictions
(CC&Rs)
C. Driver’s license regulations
D. Employment contracts
,Rationale: CC&Rs legally define HOA rules and responsibilities.
Correct Answer: B
3. Who ultimately governs a community association?
A. The property manager
B. The homeowners collectively
C. The Board of Directors
D. The state licensing board
Rationale: The board of directors is elected to govern the
association.
Correct Answer: C
4. What is fiduciary duty in community association
management?
A. Duty to maximize personal profit
B. Duty to act in the best interest of the association
C. Duty to follow only verbal instructions
D. Duty to ignore financial reports
Rationale: CAMs and board members must act in the
association’s best interest.
Correct Answer: B
5. Which financial document shows income and expenses over
a period of time?
,A. Balance sheet
B. Income statement
C. Deed restriction
D. Meeting minutes
Rationale: Income statements track revenues and expenses.
Correct Answer: B
6. What is a reserve fund used for?
A. Daily operating expenses
B. Long-term capital repairs and replacements
C. Board member salaries
D. Legal fines
Rationale: Reserve funds are for major future repairs like roofs
and paving.
Correct Answer: B
7. What is quorum in a community association meeting?
A. Maximum number of board members
B. Minimum number of members needed to conduct business
C. Voting majority requirement
D. Legal advisor presence
Rationale: Quorum ensures enough members are present to
validate decisions.
Correct Answer: B
, 8. Which of the following is an example of a violation
enforcement action?
A. Increasing taxes
B. Issuing a violation notice
C. Hiring contractors
D. Conducting audits
Rationale: Violation notices enforce community rules.
Correct Answer: B
9. What is the role of CC&Rs?
A. To set federal tax rates
B. To define community rules and restrictions
C. To hire property managers
D. To regulate police activity
Rationale: CC&Rs establish legal community standards.
Correct Answer: B
10. Which meeting must comply with open meeting laws?
A. Private homeowner disputes
B. Board of directors meetings
C. Contractor interviews only
D. Personal manager meetings
LICENSING EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A 2026
|INSTANT DONLOAD PDF
1. What is the primary purpose of a Community Association
Manager?
A. To enforce criminal law in communities
B. To manage finances and operations of community
associations
C. To replace the board of directors
D. To sell real estate within the association
Rationale: A CAM oversees administrative, financial, and
operational functions but does not replace the board or
enforce criminal law.
Correct Answer: B
2. Which document governs the operations of a homeowners
association (HOA)?
A. Federal tax code
B. Declaration of Covenants, Conditions, and Restrictions
(CC&Rs)
C. Driver’s license regulations
D. Employment contracts
,Rationale: CC&Rs legally define HOA rules and responsibilities.
Correct Answer: B
3. Who ultimately governs a community association?
A. The property manager
B. The homeowners collectively
C. The Board of Directors
D. The state licensing board
Rationale: The board of directors is elected to govern the
association.
Correct Answer: C
4. What is fiduciary duty in community association
management?
A. Duty to maximize personal profit
B. Duty to act in the best interest of the association
C. Duty to follow only verbal instructions
D. Duty to ignore financial reports
Rationale: CAMs and board members must act in the
association’s best interest.
Correct Answer: B
5. Which financial document shows income and expenses over
a period of time?
,A. Balance sheet
B. Income statement
C. Deed restriction
D. Meeting minutes
Rationale: Income statements track revenues and expenses.
Correct Answer: B
6. What is a reserve fund used for?
A. Daily operating expenses
B. Long-term capital repairs and replacements
C. Board member salaries
D. Legal fines
Rationale: Reserve funds are for major future repairs like roofs
and paving.
Correct Answer: B
7. What is quorum in a community association meeting?
A. Maximum number of board members
B. Minimum number of members needed to conduct business
C. Voting majority requirement
D. Legal advisor presence
Rationale: Quorum ensures enough members are present to
validate decisions.
Correct Answer: B
, 8. Which of the following is an example of a violation
enforcement action?
A. Increasing taxes
B. Issuing a violation notice
C. Hiring contractors
D. Conducting audits
Rationale: Violation notices enforce community rules.
Correct Answer: B
9. What is the role of CC&Rs?
A. To set federal tax rates
B. To define community rules and restrictions
C. To hire property managers
D. To regulate police activity
Rationale: CC&Rs establish legal community standards.
Correct Answer: B
10. Which meeting must comply with open meeting laws?
A. Private homeowner disputes
B. Board of directors meetings
C. Contractor interviews only
D. Personal manager meetings
