CMCA PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ Resolution.
Answer: Is a motion that follows a set format and is formally adopted by the
board of directors.
◍ Community Association.
Answer: Is a legal entity in which the owners enjoy the protection,
enhancement, maintenance and preservation of their homes and property.
◍ Characteristics of a Community Association.
Answer: Mandatory membership, mutually binding documents and
lien-based assessments.
◍ C. A work order/response form - A, B, and D speak to elements OTHER
than a control to ensure maintenance work is completed..
Answer: Which of the following is a common management control for
ensuring maintenance work is performed in a timely manner?A. A purchase
order systemB. An equipment warrantiesC. A work order/response formD.
A contractor's invoice
◍ C. Maintenance responsibility chart along, with the governing documents,
defines parameters of association maintenance responsibility.The other
answers have no bearing on necessity of maintenance or maintenance
responsibility..
Answer: The primary management control tool for identifying whether the
association needs to maintain a particular property element is:A. Physical
inspectionsB. Association bylawsC. Maintenance responsibility chartD.
Community asset inventory
,◍ Lien.
Answer: Is a 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.
◍ Types of Community Associations.
Answer: Planned Community, Condominium and Cooperative.
◍ Proprietary Lease or Occupancy Agreement.
Answer: Defines the member or stockholder's rights and obligations in
relation to the living unit.
◍ B. Re-roofing the buildings - Large contracts involving significant material
purchase and/or use of sub-contractors commonly include lien waivers and
should be recommended to the board.A, C, and D typically do not include
significant material purchases or the use of sub-contractors so a waiver of
lien is not necessary..
Answer: In what type of a contract would a waiver of lien by
recommended?A. Repair of the HVAC systemB. Re-roofing the buildingsC.
Repair of the pool pumpD. Annual tree pruning
◍ B. Maintain certain limits of insurance - Co-insurance seeks to the limits of
insurance in place at the time of a loss and speaks to insurance obligation for
the parties involved in the claim.Co-insurance does not obligate the
Association to pay a deductible. Provides no obligation to provide insurance
for homeowners..
Answer: What does "Co-Insurance" obligate the Association to do?A. Pay
the deductibleB. Maintain certain limits of insuranceC. Cover the
depreciated value of all association buildingsD. Provide insurance for
homeowners
◍ A. Negotiate contracts within the bidding process.Incorrect Answers:
B. Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of
claims by those employees, and usually accompanies a workers
, compensation insurance policy.
C. The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence of
insurance.
D. D&O insurance policies is designed to pay for wrongful acts that do not
lead to property damage (PD), bodily injury (BI), personal injury (PI), or
advertising injury (AI); an example of a claim for coverage under D&O
would be if a board of directors is accused of not uniformly enforcing rules
or covenants. Therefore, it is unlikely that the services of independent
contractors would lead to claims under D&
O. .
Answer: When an association contracts out all of its services and has no
employees, it is a best business practice to:A. Negotiate contracts within the
bidding process.B. Purchase employment practices liability insurance.C.
Assume the contractors carry their own insurance coverage.D. Increase the
coverage under the D&O insurance policy.
◍ Master or Umbrella Associations.
Answer: A master or umbrella association consists of more than one
residential community association.
◍ A. Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to
Management.Incorrect:
B. The duty to notify all owners of meetings belongs to the Board, which is
often delegated to Management.
C. Signing a petition to hold a meeting is not legal notice of the meeting.
The duty to notify all owners of meetings belongs to the Board, which is
often delegated to Management.
D. The notice of meetings is sent to the "Owner of Record" at the last
known address. In the case of multiple owners sharing title to a unit, the
owners of that unity have the duty to notify the Board/Management which
one of the owners will receive notices, and provide current contact
information..
, Answer: If an owner fails to receive notice of a meeting, the association is
not responsible if the owner:A. Did not notify association of their current
address.B. Does not usually attend the meetings.C. Already signed the
petition to call the meeting.D. Shares title with multiple owners.
◍ Mixed-use Developments.
Answer: A mixed-use development usually consists of a mixture of
residential and commercial and/or industrial uses.
◍ "55 and Older" Communities.
Answer: Must have one person who is 55 years of age or older living in at
least 80% of its occupied units.
◍ Legal Obligations for a Community Association.
Answer: Federal, state, and local statues, regulations, and case law;
Governing Documents; Lender Requirements (FHA, Fannie Mae, Freddie
Mac); Standards set by professional bodies (AICPA).
◍ A. Governing documentsIncorrect:
B. The maintenance plan is plan for doing repairs.
C. Will show financial position but not what maintenance work is required.
D. Reserves are funded separately for long term repairs..
Answer: What is the primary source of requirements when developing the
association's annual maintenance budget?A. Governing documentsB. State
lawC. Annual auditD. Reserve Study
◍ B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash basis,
some accounts, such as assessment income, are maintained on the accrual
basis and other accounts, such as interest or other miscellaneous income
accounts, and some expenses, such as miscellaneous repairs, are maintained
on a cash basis. The accrual of major expenses in particular, such as a
contract for landscaping, trash removal, etc., regardless of non-receipt
invoices, gives the read a much more accurate depiction of the association's
financial standing, as the accruals serve to alert the reader to recognition of
obligations that the association must meet.Incorrect:
QUESTIONS WITH ANSWERS GRADED
A+
◍ Resolution.
Answer: Is a motion that follows a set format and is formally adopted by the
board of directors.
◍ Community Association.
Answer: Is a legal entity in which the owners enjoy the protection,
enhancement, maintenance and preservation of their homes and property.
◍ Characteristics of a Community Association.
Answer: Mandatory membership, mutually binding documents and
lien-based assessments.
◍ C. A work order/response form - A, B, and D speak to elements OTHER
than a control to ensure maintenance work is completed..
Answer: Which of the following is a common management control for
ensuring maintenance work is performed in a timely manner?A. A purchase
order systemB. An equipment warrantiesC. A work order/response formD.
A contractor's invoice
◍ C. Maintenance responsibility chart along, with the governing documents,
defines parameters of association maintenance responsibility.The other
answers have no bearing on necessity of maintenance or maintenance
responsibility..
Answer: The primary management control tool for identifying whether the
association needs to maintain a particular property element is:A. Physical
inspectionsB. Association bylawsC. Maintenance responsibility chartD.
Community asset inventory
,◍ Lien.
Answer: Is a 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.
◍ Types of Community Associations.
Answer: Planned Community, Condominium and Cooperative.
◍ Proprietary Lease or Occupancy Agreement.
Answer: Defines the member or stockholder's rights and obligations in
relation to the living unit.
◍ B. Re-roofing the buildings - Large contracts involving significant material
purchase and/or use of sub-contractors commonly include lien waivers and
should be recommended to the board.A, C, and D typically do not include
significant material purchases or the use of sub-contractors so a waiver of
lien is not necessary..
Answer: In what type of a contract would a waiver of lien by
recommended?A. Repair of the HVAC systemB. Re-roofing the buildingsC.
Repair of the pool pumpD. Annual tree pruning
◍ B. Maintain certain limits of insurance - Co-insurance seeks to the limits of
insurance in place at the time of a loss and speaks to insurance obligation for
the parties involved in the claim.Co-insurance does not obligate the
Association to pay a deductible. Provides no obligation to provide insurance
for homeowners..
Answer: What does "Co-Insurance" obligate the Association to do?A. Pay
the deductibleB. Maintain certain limits of insuranceC. Cover the
depreciated value of all association buildingsD. Provide insurance for
homeowners
◍ A. Negotiate contracts within the bidding process.Incorrect Answers:
B. Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of
claims by those employees, and usually accompanies a workers
, compensation insurance policy.
C. The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence of
insurance.
D. D&O insurance policies is designed to pay for wrongful acts that do not
lead to property damage (PD), bodily injury (BI), personal injury (PI), or
advertising injury (AI); an example of a claim for coverage under D&O
would be if a board of directors is accused of not uniformly enforcing rules
or covenants. Therefore, it is unlikely that the services of independent
contractors would lead to claims under D&
O. .
Answer: When an association contracts out all of its services and has no
employees, it is a best business practice to:A. Negotiate contracts within the
bidding process.B. Purchase employment practices liability insurance.C.
Assume the contractors carry their own insurance coverage.D. Increase the
coverage under the D&O insurance policy.
◍ Master or Umbrella Associations.
Answer: A master or umbrella association consists of more than one
residential community association.
◍ A. Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to
Management.Incorrect:
B. The duty to notify all owners of meetings belongs to the Board, which is
often delegated to Management.
C. Signing a petition to hold a meeting is not legal notice of the meeting.
The duty to notify all owners of meetings belongs to the Board, which is
often delegated to Management.
D. The notice of meetings is sent to the "Owner of Record" at the last
known address. In the case of multiple owners sharing title to a unit, the
owners of that unity have the duty to notify the Board/Management which
one of the owners will receive notices, and provide current contact
information..
, Answer: If an owner fails to receive notice of a meeting, the association is
not responsible if the owner:A. Did not notify association of their current
address.B. Does not usually attend the meetings.C. Already signed the
petition to call the meeting.D. Shares title with multiple owners.
◍ Mixed-use Developments.
Answer: A mixed-use development usually consists of a mixture of
residential and commercial and/or industrial uses.
◍ "55 and Older" Communities.
Answer: Must have one person who is 55 years of age or older living in at
least 80% of its occupied units.
◍ Legal Obligations for a Community Association.
Answer: Federal, state, and local statues, regulations, and case law;
Governing Documents; Lender Requirements (FHA, Fannie Mae, Freddie
Mac); Standards set by professional bodies (AICPA).
◍ A. Governing documentsIncorrect:
B. The maintenance plan is plan for doing repairs.
C. Will show financial position but not what maintenance work is required.
D. Reserves are funded separately for long term repairs..
Answer: What is the primary source of requirements when developing the
association's annual maintenance budget?A. Governing documentsB. State
lawC. Annual auditD. Reserve Study
◍ B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash basis,
some accounts, such as assessment income, are maintained on the accrual
basis and other accounts, such as interest or other miscellaneous income
accounts, and some expenses, such as miscellaneous repairs, are maintained
on a cash basis. The accrual of major expenses in particular, such as a
contract for landscaping, trash removal, etc., regardless of non-receipt
invoices, gives the read a much more accurate depiction of the association's
financial standing, as the accruals serve to alert the reader to recognition of
obligations that the association must meet.Incorrect:
