M100 FOCUS EXAM QUESTIONS AND ANSWERS – COMPREHENSIVE STUDY GUIDE WITH DETAILED EXPLANATIONS

M100FOCUS EXAM QUESTIONS AND yi yi yi yi




ANSWERS (LEGALBASIS) yi yi




Define a community association and its 3 characteristics - CORRECT ANSWER -
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A community association is a legal entity in which the owners enjoy the protection, enhancement, main
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tenance and preservation of their homes and property.
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- Membership is mandatory yi yi




- Governing documents bind the owner and the association to each other through mandated actions
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- Mandatory lien- yi


based assessments (maintenance fees) are levied on each owner in order to operate and maintain the
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community association
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List the basic governing documents for a community association - CORRECT ANSWER -L-
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(ling) laws, fed, state, local
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M-

(mark) maps, records, plot plans D -
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yi (Dad) Declaration of CC&R,
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P- yi




(Pete)proprietary lease (L) or occupancy agreement A -
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yi (And) Articles of Incorporation
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B- (Bonnie) Bylaws
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R - (Rule) Rules, Regulations, Board resolution
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Define the 3 basic types of residential community associations in terms of ownership rights. -
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CORRECT ANSWER -- Planned Community
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- Condominium

- Cooperative

, What sources create legal obligations for community associations? - CORRECT ANSWER --
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Federal, state, and local statutes, regulations and case law (court decisions)
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- Legal documents unique to the community association that bind the association and its owners
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- Lender requirements - for example (FHA, FANNIE MAE, FREDDIE MAC, etc)
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- Standards set by professional bodies - yi yi yi yi yi


for example auditing standards set by the American Institute of CPA.
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Describe some of the Federal laws that affect community associations. - CORRECT ANSWER --
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Equal Employment Opportunity Commission (EEOC)
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- Fair Debt Collection Practice Act (FDCPA)
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- Fair Housing Act
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- Fair Labor and Standards Act (FSLA)
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- Family and Medical Leave Act (FMLA)
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- Federal Communications Commission (FCC)
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- Federal Insurance Contribution Act (FICA)
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- Occupational Safety and Health Act (OSHA) yi yi yi yi yi




- Soldiers and Sailors Civil Relief Act of 1940 (SSCRA)
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- US Bankruptcy Code
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Statutes are laws written and adopted by legislation or administrative agencies. Explain the difference b
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etween General, Specific and Uniformed State Statutes (and give examples) - CORRECT ANSWER -
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A General State Statute is one that applies to community associations as well as other types of organiza
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tions. The statutes that most often apply to CA are the regular corporate or the not for profit corporate
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statutes. CA's are eligible for incorporation unless they are specifically excluded by the statute itself.
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A Specific State Statutes is one that applies only to one or more types of community associations. For
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example, all states have a condo act which provides for the establishment and operation of condo a
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s legal entities.
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