M100 Exam Questions with correct Answers

Community Association - Answer- Legal entity in which the owners enjoy the protection, enhancement, maintenance, and preservation of their homes and property Three defining characteristics of Community Association - Answer- Mandatory Membership, Mutually Binding Documents, and Lien-Based Assessments Mandatory Membership - Answer- Membership in the community association is mandatory and automatic for all owners Mutually Binding Documents - Answer- Certain association governing documents bind the owner and the association to each other through mandated actions Lien-Based Assessments - Answer- 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 - Answer- Planned Community, Condominium, Cooperative Planned Community - Answer- 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 - Answer- 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 - Answer- 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 - Answer- The member or stockholders rights and obligations in relation to the living unit Specialized community associations - Answer- Master or Umbrella association, mixed-use development, 55 and older communities Master or umbrella associations - Answer- Consist of more than one residential community association Mixed-use development - Answer- Consists of a mixture of residential and commercial and/or industrial uses group together. "Live. Work. Play" 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 Sources of legal obligation - Answer- (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 - Answer- (1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA EEOC - Answer- The Equal Employment Opportunity Commission. Prohibits discrimination in hiring promotion dismissal etc. FLSA - Answer- The Fair Labor Standards Act dictates standards for the basic minimum wage and overtime pay FMLA - Answer- The Family Medical Leave Act provides for unpaid leave for various medical issues FICA - Answer- The Federal Insurance Contributions Act governs employee and employer contributions to Social Security OSHA - Answer- The Occupational Safety and Health Administration outlines safety guidelines for employees Declarations, CC&Rs, or Master Deeds - Answer- (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 - Answer- Defines the member or stockholders rights and obligations in relation to the living unit in a cooperative Articles of incorporation - Answer- Documents that establish the corporation, if the association is incorporated Bylaws - Answer- 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 - Answer- A motion that follows a set format and is formally adopted by the Board of Directors Four types of resolutions (GASP) - Answer- (1) General resolutions, (2) administrative resolutions, (3) special resolutions (4) policy resolutions Public offering statement - Answer- This is a disclosure statement that provides information on the community association to the first perspective buyers and a new development. This is not governing document, but is often accompanied by them. Hierarchy of documents - Answer- Documents fall into hierarchy of authority. The higher a document's place in the hierarchy, the greater it's legal weight in a court of law. Whenever there is a conflict, the higher document will prevail Real estate laws - Answer- (1) FDCPA, (2) FHA, (3) FCC, (4), SSCRA, U.S. Bankruptcy Code FDCPA - Answer- The Fair Debt Collection Practices Act Protects debtors from unscrupulous debt collectors FHA - Answer- The Fair Housing Act prohibits discrimination in the sale, rental, financing, ensuring and other housing related services of drawings based on race, color, religion, national origin, gender, disability or familial status FCC - Answer- The Federal Communications Commission regulates what restrictions associations can and can't place on vide