M-100 Focus Questions: LEGAL BASIS Questions With 100% Correct Answers.

Define a community association and its 3 characteristics - A community association is a legal entity in which the owners enjoy the protection, enhancement, maintenance and preservation of their homes and property. - Membership is mandatory - Governing documents bind the owner and the association to each other through mandated actions - Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate and maintain the community association List the basic governing documents for a community association - L- (ling) laws, fed, state, local M- (mark) maps, records, plot plans D - (Dad) Declaration of CC&R, P - (Pete)proprietary lease (L) or occupancy agreement A - (And) Articles of Incorporation B- (Bonnie) Bylaws R - (Rule) Rules, Regulations, Board resolution Define the 3 basic types of residential community associations in terms of ownership rights. - - Planned Community - Condominium - Cooperative What sources create legal obligations for community associations? - - Federal, state, and local statutes, regulations and case law (court decisions) - Legal documents unique to the community association that bind the association and its owners - Lender requirements - for example (FHA, FANNIE MAE, FREDDIE MAC, etc) - Standards set by professional bodies - for example auditing standards set by the American Institute of CPA.Describe some of the Federal laws that affect community associations. - - Equal Employment Opportunity Commission (EEOC) - Fair Debt Collection Practice Act (FDCPA) - Fair Housing Act - Fair Labor and Standards Act (FSLA) - Family and Medical Leave Act (FMLA) - Federal Communications Commission (FCC) - Federal Insurance Contribution Act (FICA) - Occupational Safety and Health Act (OSHA) - Soldiers and Sailors Civil Relief Act of 1940 (SSCRA) - US Bankruptcy Code Statutes are laws written and adopted by legislation or administrative agencies. Explain the difference between General, Specific and Uniformed State Statutes (and give examples) - A General State Statute is one that applies to community associations as well as other types of organizations. The statutes that most often apply to CA are the regular corporate or the not for profit corporate statutes. CA's are eligible for incorporation unless they are specifically excluded by the statute itself. A Specific State Statutes is one that applies only to one or more types of community associations. For example, all states have a condo act which provides for the establishment and operation of condo as legal entities. Uniform State Statutes standardize specific state statutes that apply to CA. Examples: Uniformed Condominium Act, Uniform Planned Communities Act, Model Real Estate Cooperative Act, Uniform Common Interest Ownership Act. What is the purpose of governing documents for a CA? - To provide for the legal structure and operation of a community association. The documents: - define the rights and obligations of both the community association and its owners - create a binding relationship between each owner and the community association - establish the mechanisms for governing and funding the community association's operations- set forth rules and standards. List the basic governing documents for a community association - M- maps, records, plot plans D - Declaration, CC&R, proprietary lease (L) or occupancy agreement A - Articles of Incorporation B- Bylaws B - Board resolution