M100 Study Guide Updated Actual Question
and Answer (2026/2027) | 100% Verified
Answers
• Three defining characteristics of Community Association -✓✓ Mandatory Membership,
Mutually Binding Documents, and Lien-Based Assessments
• Mandatory Membership -✓✓ Membership in the community association is mandatory
and automatic for all owners
• Mutually Binding Documents -✓✓ Certain association governing documents bind the
owner and the association to each other through mandated actions
• Lien-Based Assessments -✓✓ Mandatory lien-based assessments (maintenance fees)
are levied on each owner in order to operate and maintain the community association
• Three types of Community Associations -✓✓ Planned Community, Condominium,
Cooperative
• Planned Community -✓✓ The most common type of community association. Owner
owns his/her lot and/or living unit. Community owns any common area for use and
benefit of lot owners
• Condominium -✓✓ An individual owns: (1) His/Her living unit and (2) An undivided
interest in the common elements of the community. *Each owner owns a percentage of
the common elements
• Cooperative -✓✓ An individual owns (1) owns stock or membership in the cooperative,
(2) holds a proprietary lease or occupancy agreement for his/her living unit. *another
name is Stock Cooperative
• Proprietary lease or occupancy agreement -✓✓ The member or stockholders rights
and obligations in relation to the living unit
• Specialized community associations -✓✓ Master or Umbrella association, mixed-use
development, 55 and older communities
• Master or umbrella associations -✓✓ Consist of more than one residential community
association
• Mixed-use development -✓✓ Consists of a mixture of residential and commercial
and/or industrial uses group together. "Live. Work. Play"
, • 55 and older communities -✓✓ Must have one person who is 55 years of age or older
living in at least 80% of its occupied units
• Sources of legal obligation -✓✓ (1) Federal, state and local statutes, regulations and
case law (2) legal documents unique to the community association that find the
association in owners (3) lender requirements (4) Standard set professional bodies
• Federal laws -✓✓ (1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
• EEOC -✓✓ The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
• FLSA -✓✓ The Fair Labor Standards Act dictates standards for the basic minimum
wage and overtime pay
• FMLA -✓✓ The Family Medical Leave Act provides for unpaid leave for various
medical issues
• FICA -✓✓ The Federal Insurance Contributions Act governs employee and employer
contributions to Social Security
• OSHA -✓✓ The Occupational Safety and Health Administration outlines safety
guidelines for employees
• Declarations, CC&Rs, or Master Deeds -✓✓ (1) Establish the chain of title and rights
of ownership for each piece of real estate, (2) They set up the charter of the community
association and typically detail voting rights remembers using rights of common
property and limits on assessment fees, (3) They legally obligate purchasers of homes
or units to follow them and become binding on all owners once the developer sells the
first homes or unit, (4) All three terms are sometimes used interchangeably
• Proprietary lease for occupancy agreement -✓✓ Defines the member or stockholders
rights and obligations in relation to the living unit in a cooperative
• Articles of incorporation -✓✓ Documents that establish the corporation, if the
association is incorporated
• Bylaws -✓✓ Formally adopted regulations for the administration and management of a
community association, such as board member election, member voting rights, calling
and conducting meetings, and duties of the board members
• Resolutions -✓✓ A motion that follows a set format and is formally adopted by the
Board of Directors
and Answer (2026/2027) | 100% Verified
Answers
• Three defining characteristics of Community Association -✓✓ Mandatory Membership,
Mutually Binding Documents, and Lien-Based Assessments
• Mandatory Membership -✓✓ Membership in the community association is mandatory
and automatic for all owners
• Mutually Binding Documents -✓✓ Certain association governing documents bind the
owner and the association to each other through mandated actions
• Lien-Based Assessments -✓✓ Mandatory lien-based assessments (maintenance fees)
are levied on each owner in order to operate and maintain the community association
• Three types of Community Associations -✓✓ Planned Community, Condominium,
Cooperative
• Planned Community -✓✓ The most common type of community association. Owner
owns his/her lot and/or living unit. Community owns any common area for use and
benefit of lot owners
• Condominium -✓✓ An individual owns: (1) His/Her living unit and (2) An undivided
interest in the common elements of the community. *Each owner owns a percentage of
the common elements
• Cooperative -✓✓ An individual owns (1) owns stock or membership in the cooperative,
(2) holds a proprietary lease or occupancy agreement for his/her living unit. *another
name is Stock Cooperative
• Proprietary lease or occupancy agreement -✓✓ The member or stockholders rights
and obligations in relation to the living unit
• Specialized community associations -✓✓ Master or Umbrella association, mixed-use
development, 55 and older communities
• Master or umbrella associations -✓✓ Consist of more than one residential community
association
• Mixed-use development -✓✓ Consists of a mixture of residential and commercial
and/or industrial uses group together. "Live. Work. Play"
, • 55 and older communities -✓✓ Must have one person who is 55 years of age or older
living in at least 80% of its occupied units
• Sources of legal obligation -✓✓ (1) Federal, state and local statutes, regulations and
case law (2) legal documents unique to the community association that find the
association in owners (3) lender requirements (4) Standard set professional bodies
• Federal laws -✓✓ (1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
• EEOC -✓✓ The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
• FLSA -✓✓ The Fair Labor Standards Act dictates standards for the basic minimum
wage and overtime pay
• FMLA -✓✓ The Family Medical Leave Act provides for unpaid leave for various
medical issues
• FICA -✓✓ The Federal Insurance Contributions Act governs employee and employer
contributions to Social Security
• OSHA -✓✓ The Occupational Safety and Health Administration outlines safety
guidelines for employees
• Declarations, CC&Rs, or Master Deeds -✓✓ (1) Establish the chain of title and rights
of ownership for each piece of real estate, (2) They set up the charter of the community
association and typically detail voting rights remembers using rights of common
property and limits on assessment fees, (3) They legally obligate purchasers of homes
or units to follow them and become binding on all owners once the developer sells the
first homes or unit, (4) All three terms are sometimes used interchangeably
• Proprietary lease for occupancy agreement -✓✓ Defines the member or stockholders
rights and obligations in relation to the living unit in a cooperative
• Articles of incorporation -✓✓ Documents that establish the corporation, if the
association is incorporated
• Bylaws -✓✓ Formally adopted regulations for the administration and management of a
community association, such as board member election, member voting rights, calling
and conducting meetings, and duties of the board members
• Resolutions -✓✓ A motion that follows a set format and is formally adopted by the
Board of Directors
