CAI-M-100 Community Association Management Exam Q&A 100% Verified

CAI-M-100 Community Association Management Exam Q&A 100% Verified Community Association - CORRECT ANSWER-legal entity in which the owners enjoy the protection, enhancement, maintenance and preservation of their homes and property. What're the three defining characteristics of community associations? - CORRECT ANSWER-1. Membership in the community association is mandatory and automatic for all owners 2. Certain association governing documents bind the owner and the association to each other through mandated actions. 3. Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate and maintain the community association. What is a lien? - CORRECT ANSWER-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. What is the primary purpose of a community association? - CORRECT ANSWERPurpose is to provide for the community, business, and governance aspects of the association. This is done by administering, maintaining, and enhancing a residential real estate development, and through the establishment of a system of property rights, binding covenants and restrictions, and rules and regulations. What're the 3 types of basic residential community associations? - CORRECT ANSWER-1. Planned Community 2. Condominium 3. Cooperative What is a planned community? - CORRECT ANSWER-Owner owns his or her own long and/or living unit The community owns any common areas, such as tennis courts and roads for the use and benefit of the lot owners. What is a condominium? - CORRECT ANSWER-The individual owns his or her living unit and an undivided interest in the common elements of the community. Each owner owns a percentage of the common elements - which consist of everything except the living units, ex. pool or lobby. The community association itself owns no real estate as an association. What is a cooperative association? - CORRECT ANSWER-An individual owns stock or membership in the cooperative and holds a proprietary lease or occupancy agreement for his or her living unit. What is a proprietary lease or occupancy agreement? - CORRECT ANSWER-defines the member or stockholder's rights and obligations in relation to the living unit. The 3 types of residential community associations can exist by themselves or they can be grouped in clusters called: - CORRECT ANSWER-1. Master or umbrella associations 2. Mixed-use developments 3. "55 and Older" Communities What is a Master or Umbrella Association? - CORRECT ANSWER-A master or umbrella association consists of more than one residential community association