CMCA 2025 (Exam tests with their
correct solutions) Best of 2024-2025
(FULLY REVISED)
Resolution - answer-Is a motion that follows a set format and is formally adopted by the
board of directors.
Community Association - answer-Is a legal entity in which the owners enjoy the
protection, enhancement, maintenance and preservation of their homes and property.
Characteristics of a Community Association - answer-Mandatory membership, mutually
binding documents and lien-based assessments.
Lien - answer-Is a 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.
Types of Community Associations - answer-Planned Community, Condominium and
Cooperative.
Proprietary Lease or Occupancy Agreement - answer-Defines the member or
stockholder's rights and obligations in relation to the living unit.
Master or Umbrella Associations - answer-A master or umbrella association consists of
more than one residential community association.
Mixed-use Developments - answer-A mixed-use development usually consists of a
mixture of residential and commercial and/or industrial uses.
"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.
Legal Obligations for a Community Association - answer-Federal, state, and local
statues, regulations, and case law; Governing Documents; Lender Requirements (FHA,
Fannie Mae, Freddie Mac); Standards set by professional bodies (AICPA).
General State Statutes - answer-Applies to all types of associations, including
community associations (for example, regular corporate or not-for-profit corporate
statutes).
Specific State Statutes - answer-Applies to only one of the types of community
associations, takes precedence over any general statute and takes precedence over the
,association's governing documents (for example, condominium act, planned community
act).
Uniform State Statutes - answer-National Conference of Commissioners on Uniform
State Laws draft generic, content-specific wording for topical issues to encourage
uniformity among the states.
Purpose of Governing Documents - answer-To provide for the legal structure and
operation of a community association.
Governing Documents - answer-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.
General Hierarchy of Authority of Governing Documents - answer-Recorded map, plat,
or plan; Declaration, CC&Rs, master deed; Proprietary lease or occupancy agreement;
Articles of Incorporation; Bylaws; Board Resolutions (cannot conflict with documents
above it in the hierarchy).
The Articles of Incorporation - answer-Bring the corporation into existence; define its
basic purposes and powers; indicate whether stock will be issued; indicate the number
of board members and identify the initial board.
Benefits of incorporating - answer-Limit liability of individual owners; right granted all
corporations; easier to deal with utility companies, vendors, etc; grants the board of
directors the same rights as all board members of incorporated entities under state
statutes.
Bylaws - answer-Formal procedures for the administration and management of a
community association (for example, meeting procedures - including voting rights, board
powers and duties, indemnification of officers and directors).
Public Offering Statement - answer-Provides association information to first prospective
buyers in a new community; required by state statute; not considered a governing
document.
Rule, also called a rule or regulation - answer-Is a specific statement of required
behavior or action, a violation of which carries a penalty (sometimes called a sanction).
Architectural Guideline - answer-Is a rule that applies to the appearance of an owner's
lot of the exterior of his or her unit or improvements.
Resolution Format - answer-Purpose, Authority, Scope and Intent, and Specifications.
Due Process Procedure - answer-A formal process to protect the rights of all parties.
, Alternative Dispute Resolution - answer-It involves submitting a dispute to a trained,
uninvolved third party for assistance with solving a problem.
Arbitration - answer-Is a process in which a third party - called the arbitrator - renders a
decision as to the respective liabilities of all parties.
Mediation - answer-Is a non-adversarial process that is intended to bring about a "win-
win" resolution. In this process a neutral third party - called a mediator - attempts to
guide the parties into reaching a resolution or settlement that is favorable to everyone.
Internal Resources for Enforcement - answer-Suspend voting rights, suspend use of
amenities, fines, eviction, and self-help corrections.
External Resources for Enforcement - answer-Police/fire, animal control, zoning,
building/planning, and health.
Cease and Desist - answer-Specific description of the alleged violation, the action
required to resolve the alleged violation, a specific time within which the alleged
violation must be corrected, and the penalty (sanction) which may be imposed after a
hearing if the alleged violation is not corrected within the stated time (specified by state
statute, your governing documents or board resolution).
Hearing Notice - answer-A written notice to an alleged violator that a hearing will be
held to consider his or her alleged violation.
Hearing - answer-This is a fact-finding session. It is an inquiry into the allegations and
an investigation of them.
Default hearing - answer-A default hearing is one held when the alleged violator fails to
appear.
Appeal - answer-An appeal is a request for a review of a case by a higher authority - if
permitted by the governing documents, resolution or statute.
Eviction - answer-The process of physically removing a tenant (not an owner) from a
property. This process involves a local court system and the use of an attorney. Do not
consider this alternative without consulting your community's attorney. Many
jurisdictions do not permit eviction as a remedy for violations.
Self Help - answer-The community association takes action to correct the violation itself.
Do not consider this potentially dangerous alternative without consulting your
community's attorney.
Budget - answer-An annual financial plan for an organization - in this case, a community
association. It provides an estimate of a community's revenue and expenses for a
correct solutions) Best of 2024-2025
(FULLY REVISED)
Resolution - answer-Is a motion that follows a set format and is formally adopted by the
board of directors.
Community Association - answer-Is a legal entity in which the owners enjoy the
protection, enhancement, maintenance and preservation of their homes and property.
Characteristics of a Community Association - answer-Mandatory membership, mutually
binding documents and lien-based assessments.
Lien - answer-Is a 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.
Types of Community Associations - answer-Planned Community, Condominium and
Cooperative.
Proprietary Lease or Occupancy Agreement - answer-Defines the member or
stockholder's rights and obligations in relation to the living unit.
Master or Umbrella Associations - answer-A master or umbrella association consists of
more than one residential community association.
Mixed-use Developments - answer-A mixed-use development usually consists of a
mixture of residential and commercial and/or industrial uses.
"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.
Legal Obligations for a Community Association - answer-Federal, state, and local
statues, regulations, and case law; Governing Documents; Lender Requirements (FHA,
Fannie Mae, Freddie Mac); Standards set by professional bodies (AICPA).
General State Statutes - answer-Applies to all types of associations, including
community associations (for example, regular corporate or not-for-profit corporate
statutes).
Specific State Statutes - answer-Applies to only one of the types of community
associations, takes precedence over any general statute and takes precedence over the
,association's governing documents (for example, condominium act, planned community
act).
Uniform State Statutes - answer-National Conference of Commissioners on Uniform
State Laws draft generic, content-specific wording for topical issues to encourage
uniformity among the states.
Purpose of Governing Documents - answer-To provide for the legal structure and
operation of a community association.
Governing Documents - answer-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.
General Hierarchy of Authority of Governing Documents - answer-Recorded map, plat,
or plan; Declaration, CC&Rs, master deed; Proprietary lease or occupancy agreement;
Articles of Incorporation; Bylaws; Board Resolutions (cannot conflict with documents
above it in the hierarchy).
The Articles of Incorporation - answer-Bring the corporation into existence; define its
basic purposes and powers; indicate whether stock will be issued; indicate the number
of board members and identify the initial board.
Benefits of incorporating - answer-Limit liability of individual owners; right granted all
corporations; easier to deal with utility companies, vendors, etc; grants the board of
directors the same rights as all board members of incorporated entities under state
statutes.
Bylaws - answer-Formal procedures for the administration and management of a
community association (for example, meeting procedures - including voting rights, board
powers and duties, indemnification of officers and directors).
Public Offering Statement - answer-Provides association information to first prospective
buyers in a new community; required by state statute; not considered a governing
document.
Rule, also called a rule or regulation - answer-Is a specific statement of required
behavior or action, a violation of which carries a penalty (sometimes called a sanction).
Architectural Guideline - answer-Is a rule that applies to the appearance of an owner's
lot of the exterior of his or her unit or improvements.
Resolution Format - answer-Purpose, Authority, Scope and Intent, and Specifications.
Due Process Procedure - answer-A formal process to protect the rights of all parties.
, Alternative Dispute Resolution - answer-It involves submitting a dispute to a trained,
uninvolved third party for assistance with solving a problem.
Arbitration - answer-Is a process in which a third party - called the arbitrator - renders a
decision as to the respective liabilities of all parties.
Mediation - answer-Is a non-adversarial process that is intended to bring about a "win-
win" resolution. In this process a neutral third party - called a mediator - attempts to
guide the parties into reaching a resolution or settlement that is favorable to everyone.
Internal Resources for Enforcement - answer-Suspend voting rights, suspend use of
amenities, fines, eviction, and self-help corrections.
External Resources for Enforcement - answer-Police/fire, animal control, zoning,
building/planning, and health.
Cease and Desist - answer-Specific description of the alleged violation, the action
required to resolve the alleged violation, a specific time within which the alleged
violation must be corrected, and the penalty (sanction) which may be imposed after a
hearing if the alleged violation is not corrected within the stated time (specified by state
statute, your governing documents or board resolution).
Hearing Notice - answer-A written notice to an alleged violator that a hearing will be
held to consider his or her alleged violation.
Hearing - answer-This is a fact-finding session. It is an inquiry into the allegations and
an investigation of them.
Default hearing - answer-A default hearing is one held when the alleged violator fails to
appear.
Appeal - answer-An appeal is a request for a review of a case by a higher authority - if
permitted by the governing documents, resolution or statute.
Eviction - answer-The process of physically removing a tenant (not an owner) from a
property. This process involves a local court system and the use of an attorney. Do not
consider this alternative without consulting your community's attorney. Many
jurisdictions do not permit eviction as a remedy for violations.
Self Help - answer-The community association takes action to correct the violation itself.
Do not consider this potentially dangerous alternative without consulting your
community's attorney.
Budget - answer-An annual financial plan for an organization - in this case, a community
association. It provides an estimate of a community's revenue and expenses for a
