M-100 - CH 1 Exam Questions with Verified Answers (Graded A)

Each of the following are key characteristics of community associations EXCEPT: A. Mandatory lien-based economic charges or assessments are levied on each owner in order to operate and maintain the community association B. Membership in the community association is mandatory and automatic for all owners C. A requirement of community association ownership is serving on the board of directors D. Certain documents bind all owners to be governed by the community association - Answer- C. A requirement of community association ownership is serving on the board of directors True or False. The primary purpose of a community association is to provide for the governance, business, and communal aspects of the association. - Answer- True Each of the following are basic types of residential community associations EXCEPT: A. Planned community B. Townhouse C. Cooperative D. Condominium - Answer- B. Townhouse Adoption of the annual budget is an example of which of the following type of resolution? A. policy resolution B. administrative resolution C. special resolution D. general resolution - Answer- D. general resolution True or False. The purpose of a community association's governing documents is to provide for the legal structure and operation of the community - Answer- True True or False. According to the general hierarchy of authority for governing documents, the bylaws would control in a conflict with the recorded map, plat, or plan - Answer- False A ____ state statute is one that applies only to one or more types of community associations. A. general B. complex C. specific D. uniform - Answer- C. specific True or False. A proprietary lease or occupancy agreement in a cooperative defines the member or stockholder's rights and obligations in relation to the living unit - Answer- True The _____ bring the community association into existence, define its basic purposes and powers, and indicate whether stock will be issued A. recorded map, plat, or plan B. declaration, CC&Rs, or master deed C. proprietary lease or occupancy agreement D. articles of incorporation - Answer- D. articles of incorporation True or False. The public offering statement is a governing document, as it often distributed along with the governing doc