M-100 THE ESSENTIALS OF COMMUNITY ASSOCIATION
MANAGEMENT UPDATED QUESTIONS AND CORRECT
ANSWERS
Question:
1. community associa-tion
Answer:
legal entity in which the owners enjoy the protection, enhancement, main-tenance & preservation of
their homes & property
Question:
2. community associa-tion has 3 defining characteristics
Answer:
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 (mainte-nance fees) are levied on each owner in order to operate & maintain the
community assocation
Question:
3. lien
Answer:
legal claim by one party (community association) on the property of anoth-er (delinquent owner) to
obtain the payment of a debt or the satisfaction of an obligation.
Question:
4. What does the lien do?
Answer:
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.
Question:
5. Purpose of a commu-nity assocation
Answer:
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.
Question:
6. 3 basic types of residential communi-ty associations (1)
Answer:
Planned community; owner owns his unit ; community owns any common areas such as tennis courts,
for the use & benefit of the lot owners
Question:
7. second type
, Answer:
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.
Question:
8. third type
Answer:
Cooperative; person owns stock or membership; holds a proprietary lease or occupancy agreement for
his living unit
Question:
9. Proprietary lease or occupancy agree-ment
Answer:
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.
Question:
10. 3 types of residen-tial community as-sociations can exist by themselves or can be group in
clusters called:
Answer:
Master or umbrella associations: consists of more than 1 residential com-munity association.
Question:
11. Second type
Answer:
Mixed-use development-consists of a mixture of residential & commercial &/or industrial uses
grouped together.
Question:
12. Third type
Answer:
55 & older communities; must have 1 person who is 55 of age or older living in at least 80% of
occupied units.
Question:
13. Sources of legal oblig-ations for a communi-ty association
Answer:
Federal, state & local statues, regulations, & case law
Question:
14. second source
Answer:
legal documents unique to the community association that bind the asso-ciation & its owners
Question:
15. third source
MANAGEMENT UPDATED QUESTIONS AND CORRECT
ANSWERS
Question:
1. community associa-tion
Answer:
legal entity in which the owners enjoy the protection, enhancement, main-tenance & preservation of
their homes & property
Question:
2. community associa-tion has 3 defining characteristics
Answer:
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 (mainte-nance fees) are levied on each owner in order to operate & maintain the
community assocation
Question:
3. lien
Answer:
legal claim by one party (community association) on the property of anoth-er (delinquent owner) to
obtain the payment of a debt or the satisfaction of an obligation.
Question:
4. What does the lien do?
Answer:
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.
Question:
5. Purpose of a commu-nity assocation
Answer:
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.
Question:
6. 3 basic types of residential communi-ty associations (1)
Answer:
Planned community; owner owns his unit ; community owns any common areas such as tennis courts,
for the use & benefit of the lot owners
Question:
7. second type
, Answer:
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.
Question:
8. third type
Answer:
Cooperative; person owns stock or membership; holds a proprietary lease or occupancy agreement for
his living unit
Question:
9. Proprietary lease or occupancy agree-ment
Answer:
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.
Question:
10. 3 types of residen-tial community as-sociations can exist by themselves or can be group in
clusters called:
Answer:
Master or umbrella associations: consists of more than 1 residential com-munity association.
Question:
11. Second type
Answer:
Mixed-use development-consists of a mixture of residential & commercial &/or industrial uses
grouped together.
Question:
12. Third type
Answer:
55 & older communities; must have 1 person who is 55 of age or older living in at least 80% of
occupied units.
Question:
13. Sources of legal oblig-ations for a communi-ty association
Answer:
Federal, state & local statues, regulations, & case law
Question:
14. second source
Answer:
legal documents unique to the community association that bind the asso-ciation & its owners
Question:
15. third source
