M100 Community Association Management Exam
Updated Actual Question and Answer (2026/2027) |
Final Review
• community association -✓✓ legal entity in which the owners enjoy the protection,
enhancement, maintenance & preservation of their homes & property
• community association has 3 defining characteristics -✓✓ Membership in the
community is mandatory & automatic for all owners; certain association docs bind the
owner & the association to each other through mandated actions; mandatory lien-based
assessments (maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
• lien -✓✓ legal claim by one party (community association) on the property of another
(delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation.
• What does the lien do? -✓✓ Placing a lien on an owner's property protects the
community association's interests. It encourages payment of the debt. Consequence of
lien is the owner cant sell or transfer the unit without settling the debt.
• Purpose of a community assocation -✓✓ to provide for the community, business, &
governance aspects of the association. This is achieved by administering, maintaining,
& enhancing a residential real estate development, and through the establishment of a
system of property rights, binding covenants & restrictions, & rules & regulations.
• 3 basic types of residential community associations (1) -✓✓ Planned community;
owner owns his unit ; community owns any common areas such as tennis courts, for the
use & benefit of the lot owners
• second type -✓✓ Condominium; owner owns his living unit & an undivided interest in
the common elements of the community. Each owner owns a % of the common
elements, which consist of everything except the living units.
• third type -✓✓ Cooperative; person owns stock or membership; holds a proprietary
lease or occupancy agreement for his living unit
• Proprietary lease or occupancy agreement -✓✓ defines the member or stockholders'
rights & obligations in relation to the living unit. The community association owns all of
the real estate as a not-for-profit corporation.
• 3 types of residential community associations can exist by themselves or can be group
in clusters called: -✓✓ Master or umbrella associations: consists of more than 1
residential community association.
, • Second type -✓✓ Mixed-use development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
• Third type -✓✓ 55 & older communities; must have 1 person who is 55 of age or older
living in at least 80% of occupied units.
• Sources of legal obligations for a community association -✓✓ Federal, state & local
statues, regulations, & case law
• second source -✓✓ legal documents unique to the community association that bind
the association & its owners
• third source -✓✓ lender requirements; requirements set by secondary institutions (ex;
FHA, Fannie Mae)
• fourth source -✓✓ standards set by professional bodies; ex: auditing standards set the
American Institute of CPAs
• Types of Federal Laws applying to community associations -✓✓ Equal employment
opportunity commission (EEOC); federal govt prohibits discrimination against otherwise
qualified people in hiring, promotion, dismissal, based on specific characteristics like
race & ethnicity, age, color, gender, religion
• second federal law -✓✓ Fair Debt Collection Practices act: protect debtors from
unscrupulous debt collects & to impose a consistent & fair method to collect debts.
• third federal law -✓✓ Fair Labor & standards act (FSLA); dictates standards for the
basic minimum wage & overtime pay
• fourth federal law -✓✓ Family & Medical Leave Act (FMLA); requires employers of 50
or more employees to provide up to 12 weeks of unpaid, job-protected leave to eligible
employees for birth or adoption of a child or serious illness of the employee or spouse,
child or parent.
• fifth federal law -✓✓ Federal Insurance contributions act (FICA)
• sixth federal law -✓✓ Occupational Safety & Health Act (OSHA)
• 7th federal law -✓✓ US Bankruptcy code
• 8th federal law -✓✓ Fair housing Act
• Highlights of fair housing act -✓✓ Reasonable accommodations/modifications; they
created a new class of protected individuals - those w/ disabilities
Updated Actual Question and Answer (2026/2027) |
Final Review
• community association -✓✓ legal entity in which the owners enjoy the protection,
enhancement, maintenance & preservation of their homes & property
• community association has 3 defining characteristics -✓✓ Membership in the
community is mandatory & automatic for all owners; certain association docs bind the
owner & the association to each other through mandated actions; mandatory lien-based
assessments (maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
• lien -✓✓ legal claim by one party (community association) on the property of another
(delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation.
• What does the lien do? -✓✓ Placing a lien on an owner's property protects the
community association's interests. It encourages payment of the debt. Consequence of
lien is the owner cant sell or transfer the unit without settling the debt.
• Purpose of a community assocation -✓✓ to provide for the community, business, &
governance aspects of the association. This is achieved by administering, maintaining,
& enhancing a residential real estate development, and through the establishment of a
system of property rights, binding covenants & restrictions, & rules & regulations.
• 3 basic types of residential community associations (1) -✓✓ Planned community;
owner owns his unit ; community owns any common areas such as tennis courts, for the
use & benefit of the lot owners
• second type -✓✓ Condominium; owner owns his living unit & an undivided interest in
the common elements of the community. Each owner owns a % of the common
elements, which consist of everything except the living units.
• third type -✓✓ Cooperative; person owns stock or membership; holds a proprietary
lease or occupancy agreement for his living unit
• Proprietary lease or occupancy agreement -✓✓ defines the member or stockholders'
rights & obligations in relation to the living unit. The community association owns all of
the real estate as a not-for-profit corporation.
• 3 types of residential community associations can exist by themselves or can be group
in clusters called: -✓✓ Master or umbrella associations: consists of more than 1
residential community association.
, • Second type -✓✓ Mixed-use development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
• Third type -✓✓ 55 & older communities; must have 1 person who is 55 of age or older
living in at least 80% of occupied units.
• Sources of legal obligations for a community association -✓✓ Federal, state & local
statues, regulations, & case law
• second source -✓✓ legal documents unique to the community association that bind
the association & its owners
• third source -✓✓ lender requirements; requirements set by secondary institutions (ex;
FHA, Fannie Mae)
• fourth source -✓✓ standards set by professional bodies; ex: auditing standards set the
American Institute of CPAs
• Types of Federal Laws applying to community associations -✓✓ Equal employment
opportunity commission (EEOC); federal govt prohibits discrimination against otherwise
qualified people in hiring, promotion, dismissal, based on specific characteristics like
race & ethnicity, age, color, gender, religion
• second federal law -✓✓ Fair Debt Collection Practices act: protect debtors from
unscrupulous debt collects & to impose a consistent & fair method to collect debts.
• third federal law -✓✓ Fair Labor & standards act (FSLA); dictates standards for the
basic minimum wage & overtime pay
• fourth federal law -✓✓ Family & Medical Leave Act (FMLA); requires employers of 50
or more employees to provide up to 12 weeks of unpaid, job-protected leave to eligible
employees for birth or adoption of a child or serious illness of the employee or spouse,
child or parent.
• fifth federal law -✓✓ Federal Insurance contributions act (FICA)
• sixth federal law -✓✓ Occupational Safety & Health Act (OSHA)
• 7th federal law -✓✓ US Bankruptcy code
• 8th federal law -✓✓ Fair housing Act
• Highlights of fair housing act -✓✓ Reasonable accommodations/modifications; they
created a new class of protected individuals - those w/ disabilities
