CMCA EXAM 2024 REAL
EXAM 170 QUESTIONS
AND CORRECT
ANSWERS(VERIFIED
ANSWERS)|
1. What is the role of a community manager regarding board decisions?
● Answer:
The community manager implements the board's decisions and provides professional
advice but does not vote or make decisions for the board.
2. Which document outlines the legal framework for the governance of a
community association?
● Answer:
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) outlines the
legal framework for the governance of a community association.
3. What is the primary purpose of a reserve study?
● Answer:
A reserve study helps a community association plan for major repairs and replacements
of common elements by estimating future costs and funding requirements.
,4. What type of insurance is required to protect board members from
personal liability?
● Answer:
Directors and Officers (D&O) liability insurance protects board members from personal
liability arising from their decisions or actions in their official capacity.
5. How can a community manager best handle a conflict between two board
members?
● Answer:
The manager should act as a neutral facilitator, ensuring that discussions remain
focused on community issues and are conducted respectfully and professionally.
6. What is the proper protocol for handling confidential homeowner
information?
● Answer:
Confidential homeowner information must be securely stored and only shared on a
need-to-know basis, in compliance with privacy laws and association policies.
7. If a homeowner fails to pay their assessments, what is typically the first
step the association should take?
● Answer:
The first step is to send a written reminder or notice of delinquency to the
homeowner, outlining the amount owed and any applicable late fees or penalties.
8. What is the purpose of a quorum in a board meeting?
● Answer:
A quorum ensures that the minimum number of board members is present to conduct
official business and make binding decisions.
9. Which financial statement shows the association’s financial position on
a specific date?
, ● Answer:
The balance sheet shows the association’s financial position on a specific date,
including assets, liabilities, and equity.
10. How can a community association avoid claims of discrimination in
enforcing rules?
● Answer:
Rules should be enforced consistently and fairly, without exceptions, and in compliance
with local, state, and federal anti-discrimination laws.
11. What is the primary responsibility of the board of directors in a
community association?
● Answer:
The board of directors is responsible for governing the community association, enforcing
rules, maintaining common areas, and managing the association's finances.
12. What is the term for the legal agreement between a homeowner and the
association?
● Answer:
The term is the covenants or the Declaration of Covenants, Conditions, and
Restrictions (CC&Rs).
13. What is the purpose of the association's annual meeting?
● Answer:
The annual meeting allows homeowners to review the association's performance, elect
board members, and address significant community issues.
14. Which report summarizes the association’s income and expenses over
a period?
● Answer:
The income statement or profit and loss statement (P&L) summarizes the
association’s income and expenses over a specific period.
EXAM 170 QUESTIONS
AND CORRECT
ANSWERS(VERIFIED
ANSWERS)|
1. What is the role of a community manager regarding board decisions?
● Answer:
The community manager implements the board's decisions and provides professional
advice but does not vote or make decisions for the board.
2. Which document outlines the legal framework for the governance of a
community association?
● Answer:
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) outlines the
legal framework for the governance of a community association.
3. What is the primary purpose of a reserve study?
● Answer:
A reserve study helps a community association plan for major repairs and replacements
of common elements by estimating future costs and funding requirements.
,4. What type of insurance is required to protect board members from
personal liability?
● Answer:
Directors and Officers (D&O) liability insurance protects board members from personal
liability arising from their decisions or actions in their official capacity.
5. How can a community manager best handle a conflict between two board
members?
● Answer:
The manager should act as a neutral facilitator, ensuring that discussions remain
focused on community issues and are conducted respectfully and professionally.
6. What is the proper protocol for handling confidential homeowner
information?
● Answer:
Confidential homeowner information must be securely stored and only shared on a
need-to-know basis, in compliance with privacy laws and association policies.
7. If a homeowner fails to pay their assessments, what is typically the first
step the association should take?
● Answer:
The first step is to send a written reminder or notice of delinquency to the
homeowner, outlining the amount owed and any applicable late fees or penalties.
8. What is the purpose of a quorum in a board meeting?
● Answer:
A quorum ensures that the minimum number of board members is present to conduct
official business and make binding decisions.
9. Which financial statement shows the association’s financial position on
a specific date?
, ● Answer:
The balance sheet shows the association’s financial position on a specific date,
including assets, liabilities, and equity.
10. How can a community association avoid claims of discrimination in
enforcing rules?
● Answer:
Rules should be enforced consistently and fairly, without exceptions, and in compliance
with local, state, and federal anti-discrimination laws.
11. What is the primary responsibility of the board of directors in a
community association?
● Answer:
The board of directors is responsible for governing the community association, enforcing
rules, maintaining common areas, and managing the association's finances.
12. What is the term for the legal agreement between a homeowner and the
association?
● Answer:
The term is the covenants or the Declaration of Covenants, Conditions, and
Restrictions (CC&Rs).
13. What is the purpose of the association's annual meeting?
● Answer:
The annual meeting allows homeowners to review the association's performance, elect
board members, and address significant community issues.
14. Which report summarizes the association’s income and expenses over
a period?
● Answer:
The income statement or profit and loss statement (P&L) summarizes the
association’s income and expenses over a specific period.
