M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM-
QUESTIONS AND ANSWERS| GUARANTEED PASS | LATEST
EXAM UPDATE 2026/2027/2028 | EXAM PREP | STUDY GUIDE
| PRACTICE TEST
1. What is the primary foundational legal document that establishes a community
association, defines property rights, and creates the binding covenants, conditions, and
restrictions (CC&Rs)?
A. The corporate bylaws
B. The recorded declaration or master deed
C. The architectural review manual
D. The annual operating budget
The recorded declaration or master deed is the foundational legal document that establishes
the community association, defines individual unit boundaries, and creates the permanent
covenants, conditions, and restrictions that run with the land.
2. A new community association board member wants to inspect private homeowner
correspondence regarding architectural requests. Which document governs whether board
members have an unrestricted right to inspect all association records?
A. State corporation or condominium statutes and the association bylaws
B. Robert Rules of Order Newly Revised
C. The local municipal zoning ordinance
D. The property insurance policy declarations
State statutes governing corporations or condominiums, along with the association bylaws and
declaration, dictate which records are open for inspection by board members and owners.
3. During an executive session of the board of directors, which of the following topics is
appropriate for confidential discussion?
A. Approving the annual landscaping maintenance contract bids
B. Discussing pending or potential litigation with association legal counsel
C. Voting to increase the regular annual homeowner assessments
D. Reviewing the general year-to-date income and expense financial report
Executive sessions are legally reserved for sensitive matters such as legal consultation,
personnel issues, contract negotiations, and owner disciplinary hearings to protect
confidentiality.
,4. An association manager notices that the community swimming pool contractor has failed
to maintain chemical balance logs required by county health codes. What is the manager's
immediate responsibility?
A. Ignore the omission since pool maintenance is subcontracted out
B. Notify the pool contractor immediately in writing, demand compliance, and inform the board
president
C. Close the pool permanently without notifying the board
D. Adjust the pool chemicals personally using maintenance tools
The manager must protect the association from liability by immediately addressing safety code
violations with the contractor and alerting association leadership.
5. What is the primary purpose of establishing a reserve study for a community
association?
A. To fund daily administrative payroll expenses
B. To systematically plan and fund the long-term repair and replacement of major common
elements
C. To pay for emergency legal defense against disgruntled homeowners
D. To reduce short-term property tax burdens for individual owners
A reserve study identifies major common elements, assesses their remaining useful life, and
calculates the necessary funding schedule to prevent deferred maintenance and special
assessments.
6. A homeowner submits an architectural request to install solar panels on their roof. The
governing documents are silent on solar energy systems. What should the manager advise
the board to do?
A. Reject the request immediately to preserve uniform roof aesthetics
B. Consult state statutes regarding solar rights, review local ordinances, and establish reasonable
guidelines if permitted by law
C. Allow the homeowner to install any design without review
D. Forward the request to the municipal police department
Many jurisdictions have statutory protections for solar installations that override restrictive
covenants, requiring boards to handle such requests carefully within legal boundaries.
7. When preparing an annual zero-based operating budget, how should the manager treat
historical financial data from previous fiscal years?
A. Ignore historical data entirely and guess next year figures
B. Use historical actual expenses as a baseline, adjusting for projected inflation, utility rate
increases, and contract changes
C. Copy the previous year budget line-for-line without modifications
, D. Base the budget solely on what homeowners state they are willing to pay
Effective budgeting utilizes past actual performance as a realistic baseline while factoring in
foreseeable economic trends, vendor cost adjustments, and operational changes.
8. A homeowner is 90 days delinquent on quarterly assessments. The board wishes to
accelerate the remaining annual assessments. Where must this specific authority be
explicitly granted?
A. Robert Rules of Order
B. The association declaration or bylaws and applicable state law
C. The local real estate board guidelines
D. The community newsletter guidelines
Assessment acceleration and collection procedures are powerful remedies that must be
explicitly authorized by the association governing documents and permitted by state statute.
9. Which type of insurance policy is specifically designed to protect individual board
members against claims of wrongful acts, omissions, or breaches of duty in their official
capacity?
A. General liability insurance
B. Directors and Officers (D&O) liability insurance
C. Workers compensation insurance
D. Boiler and machinery insurance
Directors and Officers liability insurance protects board members from personal financial loss
arising from claims alleging wrongful acts, mismanagement, or breaches of fiduciary duty.
10. An angry homeowner disrupts a regular open board meeting by shouting insults at
directors during the open forum. What is the proper procedure for the board president to
follow?
A. Call the local SWAT team immediately
B. Adjourn the meeting permanently for the year
C. Call the homeowner to order, cite the established meeting rules of conduct, and recess or
remove the individual if disruption persists
D. Resign from the board on the spot
Board meetings are business meetings open to owners, not public forums without rules;
presidents should maintain decorum by enforcing established meeting policies and conduct
rules.
11. A community association manager receives a written request from a prospective buyer
for a resale disclosure certificate. What is the manager primary operational concern?
QUESTIONS AND ANSWERS| GUARANTEED PASS | LATEST
EXAM UPDATE 2026/2027/2028 | EXAM PREP | STUDY GUIDE
| PRACTICE TEST
1. What is the primary foundational legal document that establishes a community
association, defines property rights, and creates the binding covenants, conditions, and
restrictions (CC&Rs)?
A. The corporate bylaws
B. The recorded declaration or master deed
C. The architectural review manual
D. The annual operating budget
The recorded declaration or master deed is the foundational legal document that establishes
the community association, defines individual unit boundaries, and creates the permanent
covenants, conditions, and restrictions that run with the land.
2. A new community association board member wants to inspect private homeowner
correspondence regarding architectural requests. Which document governs whether board
members have an unrestricted right to inspect all association records?
A. State corporation or condominium statutes and the association bylaws
B. Robert Rules of Order Newly Revised
C. The local municipal zoning ordinance
D. The property insurance policy declarations
State statutes governing corporations or condominiums, along with the association bylaws and
declaration, dictate which records are open for inspection by board members and owners.
3. During an executive session of the board of directors, which of the following topics is
appropriate for confidential discussion?
A. Approving the annual landscaping maintenance contract bids
B. Discussing pending or potential litigation with association legal counsel
C. Voting to increase the regular annual homeowner assessments
D. Reviewing the general year-to-date income and expense financial report
Executive sessions are legally reserved for sensitive matters such as legal consultation,
personnel issues, contract negotiations, and owner disciplinary hearings to protect
confidentiality.
,4. An association manager notices that the community swimming pool contractor has failed
to maintain chemical balance logs required by county health codes. What is the manager's
immediate responsibility?
A. Ignore the omission since pool maintenance is subcontracted out
B. Notify the pool contractor immediately in writing, demand compliance, and inform the board
president
C. Close the pool permanently without notifying the board
D. Adjust the pool chemicals personally using maintenance tools
The manager must protect the association from liability by immediately addressing safety code
violations with the contractor and alerting association leadership.
5. What is the primary purpose of establishing a reserve study for a community
association?
A. To fund daily administrative payroll expenses
B. To systematically plan and fund the long-term repair and replacement of major common
elements
C. To pay for emergency legal defense against disgruntled homeowners
D. To reduce short-term property tax burdens for individual owners
A reserve study identifies major common elements, assesses their remaining useful life, and
calculates the necessary funding schedule to prevent deferred maintenance and special
assessments.
6. A homeowner submits an architectural request to install solar panels on their roof. The
governing documents are silent on solar energy systems. What should the manager advise
the board to do?
A. Reject the request immediately to preserve uniform roof aesthetics
B. Consult state statutes regarding solar rights, review local ordinances, and establish reasonable
guidelines if permitted by law
C. Allow the homeowner to install any design without review
D. Forward the request to the municipal police department
Many jurisdictions have statutory protections for solar installations that override restrictive
covenants, requiring boards to handle such requests carefully within legal boundaries.
7. When preparing an annual zero-based operating budget, how should the manager treat
historical financial data from previous fiscal years?
A. Ignore historical data entirely and guess next year figures
B. Use historical actual expenses as a baseline, adjusting for projected inflation, utility rate
increases, and contract changes
C. Copy the previous year budget line-for-line without modifications
, D. Base the budget solely on what homeowners state they are willing to pay
Effective budgeting utilizes past actual performance as a realistic baseline while factoring in
foreseeable economic trends, vendor cost adjustments, and operational changes.
8. A homeowner is 90 days delinquent on quarterly assessments. The board wishes to
accelerate the remaining annual assessments. Where must this specific authority be
explicitly granted?
A. Robert Rules of Order
B. The association declaration or bylaws and applicable state law
C. The local real estate board guidelines
D. The community newsletter guidelines
Assessment acceleration and collection procedures are powerful remedies that must be
explicitly authorized by the association governing documents and permitted by state statute.
9. Which type of insurance policy is specifically designed to protect individual board
members against claims of wrongful acts, omissions, or breaches of duty in their official
capacity?
A. General liability insurance
B. Directors and Officers (D&O) liability insurance
C. Workers compensation insurance
D. Boiler and machinery insurance
Directors and Officers liability insurance protects board members from personal financial loss
arising from claims alleging wrongful acts, mismanagement, or breaches of fiduciary duty.
10. An angry homeowner disrupts a regular open board meeting by shouting insults at
directors during the open forum. What is the proper procedure for the board president to
follow?
A. Call the local SWAT team immediately
B. Adjourn the meeting permanently for the year
C. Call the homeowner to order, cite the established meeting rules of conduct, and recess or
remove the individual if disruption persists
D. Resign from the board on the spot
Board meetings are business meetings open to owners, not public forums without rules;
presidents should maintain decorum by enforcing established meeting policies and conduct
rules.
11. A community association manager receives a written request from a prospective buyer
for a resale disclosure certificate. What is the manager primary operational concern?
