CAI Exam Flashcards
questions and
answers well illustrated.
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 answer..
Purpose
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.
What is a Mixed-Use Development? correct answer.. A mixed-use
development usually consists of a mixture of residential and commercial
and/or industrial uses group together. Their marketing slogan is often "live,
work, play".
What is a "55 and Older" Community? correct answer.. Must have one
person who is 55 years of age or older living in at least 80% of its occupied
units.
What is the Equal Employment Opportunity Commission (EEOC)? correct
answer.. The federal government prohibits discrimination against
otherwise qualified people in hiring, promotion, dismissal, compensation,
and working conditions based on specific personal characteristics
including:
-race and ethnicity
-color
-national origin
-age
-gender
,-religion
-pregnancy
-disability
, What 2is 2the 2Fair 2Debt 2Collection 2Practices 2Act 2(FDCPA)? 2correct 2answer..
The
2purpose 2of 2the 2FDCPA 2is 2to 2protect 2debtors 2from 2unscrupulous 2debt
2collectors 2and 2to 2impose 2a 2consistent 2and 2fair 2method 2to 2collect 2debts.
What 2is 2the 2Fair 2Labor 2and 2Standards 2Act 2(FSLA)? 2correct 2answer.. FLSA
2dictates 2standards 2for 2the 2basic 2minimum 2wage 2and 2overtime 2pay. 2It
2affects 2most 2private 2and 2public 2employment. 2It 2requires 2employers 2to 2pay
2covered 2employees 2who 2are 2not 2otherwise 2exempt 2at 2least 2the 2federal
2minimum 2wage 2and 2overtime 2pay 2of 2one-and-one- 2half-times 2the 2regular
2rate 2of 2pay. 2Some 2states 2have 2higher 2basic 2minimum 2wage 2amounts.
What 2is 2the 2Family 2and 2Medical 2Leave 2Act 2(FMLA)? 2correct 2answer..
Administered
2by 2the 2Wage 2and 2Hour 2Division 2of 2the 2Department 2of 2Labor, 2FMLA 2requires
2employers 2of 250 2or 2more 2employees 2to 2provide 2up 2to 212 2weeks 2of 2unpaid,
2job-protected 2leave 2to 2eligible 2employees 2for 2the 2birth 2or 2adoption 2of 2a
2child 2or 2for 2the 2serious 2illness 2of 2the 2employee 2or 2a 2spouse, 2child, 2or
2parent.
What 2is 2the 2Federal 2Insurance 2Contributions 2Act 2(FICA)? 2correct 2answer..
This 2act
2requires 2employers 2and 2employees 2to 2make 2matching 2contributions 2to
2Social 2Security. 2The 2employer 2must 2withhold 2the 2employee's 2share 2of 2the
2tax 2from 2his 2or 2her 2wages 2or 2salary 2and 2pay 2it 2timely 2to 2the 2federal
2government.
What 2is 2the 2Occupational 2Safety 2and 2Health 2Act 2(OSHA)? 2correct 2answer..
2 OSHA's 2mission 2is 2to 2"prevent 2injuries 2and 2protect 2the 2health 2of
2America's 2workers 2by 2ensuring 2safe 2and 2healthful 2workplaces". 2Some
2OSHA 2requirements 2include:
-specific 2working 2conditions
-
What 2is 2the 2Soldiers' 2and 2Sailors' 2Civil 2Relief 2Act 2of 21940? 2(SSCRA) 2correct
2answer.. 2SSCRA 2impacts 2American 2forces 2on 2active 2duty 2by 2requiring 2the
2delay 2of 2all 2civil 2court 2actions, 2such 2as 2bankruptcy 2or 2foreclosure, 2until 2the
2service 2member 2returns 2from 2active 2duty. 2SSCRA 2also 2protects 2active
2service 2members' 2dependents 2from 2being 2evicted 2if 2the 2rent 2does 2not
2exceed 2$1,200 2per 2month 2by 2requiring 2the 2landlord 2to 2obtain 2a 2court 2order
2authorizing 2eviction.
What 2is 2the 2U.S. 2Bankruptcy 2Code? 2correct 2answer.. The 2purpose 2of
2this 2law 2is 2to 2help 2honest 2people 2and 2businesses 2find 2a 2way 2to 2pay
2their 2debt 2or 2get 2a 2fresh 2law.
These 2laws 2help 2people 2who 2can 2no 2longer 2pay 2their 2creditors 2start 2anew 2--
2by 2liquidating 2assets 2to 2pay 2their 2debts 2or 2by 2creating 2a 2repayment 2plan.
2Bankruptcy 2Prevention 2and 2Consumer 2Protection 2Act 2(2005) 2contained 2a
2small 2provision 2stating 2that 2associations 2have 2the 2authority 2to 2collect
questions and
answers well illustrated.
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 answer..
Purpose
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.
What is a Mixed-Use Development? correct answer.. A mixed-use
development usually consists of a mixture of residential and commercial
and/or industrial uses group together. Their marketing slogan is often "live,
work, play".
What is a "55 and Older" Community? correct answer.. Must have one
person who is 55 years of age or older living in at least 80% of its occupied
units.
What is the Equal Employment Opportunity Commission (EEOC)? correct
answer.. The federal government prohibits discrimination against
otherwise qualified people in hiring, promotion, dismissal, compensation,
and working conditions based on specific personal characteristics
including:
-race and ethnicity
-color
-national origin
-age
-gender
,-religion
-pregnancy
-disability
, What 2is 2the 2Fair 2Debt 2Collection 2Practices 2Act 2(FDCPA)? 2correct 2answer..
The
2purpose 2of 2the 2FDCPA 2is 2to 2protect 2debtors 2from 2unscrupulous 2debt
2collectors 2and 2to 2impose 2a 2consistent 2and 2fair 2method 2to 2collect 2debts.
What 2is 2the 2Fair 2Labor 2and 2Standards 2Act 2(FSLA)? 2correct 2answer.. FLSA
2dictates 2standards 2for 2the 2basic 2minimum 2wage 2and 2overtime 2pay. 2It
2affects 2most 2private 2and 2public 2employment. 2It 2requires 2employers 2to 2pay
2covered 2employees 2who 2are 2not 2otherwise 2exempt 2at 2least 2the 2federal
2minimum 2wage 2and 2overtime 2pay 2of 2one-and-one- 2half-times 2the 2regular
2rate 2of 2pay. 2Some 2states 2have 2higher 2basic 2minimum 2wage 2amounts.
What 2is 2the 2Family 2and 2Medical 2Leave 2Act 2(FMLA)? 2correct 2answer..
Administered
2by 2the 2Wage 2and 2Hour 2Division 2of 2the 2Department 2of 2Labor, 2FMLA 2requires
2employers 2of 250 2or 2more 2employees 2to 2provide 2up 2to 212 2weeks 2of 2unpaid,
2job-protected 2leave 2to 2eligible 2employees 2for 2the 2birth 2or 2adoption 2of 2a
2child 2or 2for 2the 2serious 2illness 2of 2the 2employee 2or 2a 2spouse, 2child, 2or
2parent.
What 2is 2the 2Federal 2Insurance 2Contributions 2Act 2(FICA)? 2correct 2answer..
This 2act
2requires 2employers 2and 2employees 2to 2make 2matching 2contributions 2to
2Social 2Security. 2The 2employer 2must 2withhold 2the 2employee's 2share 2of 2the
2tax 2from 2his 2or 2her 2wages 2or 2salary 2and 2pay 2it 2timely 2to 2the 2federal
2government.
What 2is 2the 2Occupational 2Safety 2and 2Health 2Act 2(OSHA)? 2correct 2answer..
2 OSHA's 2mission 2is 2to 2"prevent 2injuries 2and 2protect 2the 2health 2of
2America's 2workers 2by 2ensuring 2safe 2and 2healthful 2workplaces". 2Some
2OSHA 2requirements 2include:
-specific 2working 2conditions
-
What 2is 2the 2Soldiers' 2and 2Sailors' 2Civil 2Relief 2Act 2of 21940? 2(SSCRA) 2correct
2answer.. 2SSCRA 2impacts 2American 2forces 2on 2active 2duty 2by 2requiring 2the
2delay 2of 2all 2civil 2court 2actions, 2such 2as 2bankruptcy 2or 2foreclosure, 2until 2the
2service 2member 2returns 2from 2active 2duty. 2SSCRA 2also 2protects 2active
2service 2members' 2dependents 2from 2being 2evicted 2if 2the 2rent 2does 2not
2exceed 2$1,200 2per 2month 2by 2requiring 2the 2landlord 2to 2obtain 2a 2court 2order
2authorizing 2eviction.
What 2is 2the 2U.S. 2Bankruptcy 2Code? 2correct 2answer.. The 2purpose 2of
2this 2law 2is 2to 2help 2honest 2people 2and 2businesses 2find 2a 2way 2to 2pay
2their 2debt 2or 2get 2a 2fresh 2law.
These 2laws 2help 2people 2who 2can 2no 2longer 2pay 2their 2creditors 2start 2anew 2--
2by 2liquidating 2assets 2to 2pay 2their 2debts 2or 2by 2creating 2a 2repayment 2plan.
2Bankruptcy 2Prevention 2and 2Consumer 2Protection 2Act 2(2005) 2contained 2a
2small 2provision 2stating 2that 2associations 2have 2the 2authority 2to 2collect
