CMCA Practice FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE / EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
Resolution
Ans>> Is a motion that follows a set format and is formally adopted by the board of directors.
Quiz Community Association
Ans>> Is a legal entity in which the owners enjoy the protection, enhancement, maintenance and
preservation of their homes and property.
Quiz Characteristics of a Community Association
Ans>> Mandatory membership, mutually binding documents and lien-based assessments.
Quiz Lien
Ans>> 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.
Quiz Types of Community Associations
Ans>> Planned Community, Condominium and Cooperative.
,Quiz Proprietary Lease or Occupancy Agreement
Ans>> Defines the member or stockholder's rights and obligations in relation to the living unit.
Quiz Master or Umbrella Associations
Ans>> A master or umbrella association consists of more than one residential community association.
Quiz Mixed-use Developments
Ans>> A mixed-use development usually consists of a mixture of residential and commercial and/or
industrial uses.
Quiz "55 and Older" Communities
Ans>> Must have one person who is 55 years of age or older living in at least 80% of its occupied units.
Quiz Legal Obligations for a Community Association
Ans>> Federal, state, and local statues, regulations, and case law; Governing Documents; Lender
Requirements (FHA, Fannie Mae, Freddie Mac); Standards set by professional bodies (AICPA).
Quiz General State Statutes
Ans>> Applies to all types of associations, including community associations (for example, regular
corporate or not-for-profit corporate statutes).
Quiz Specific State Statutes
Ans>> 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).
,Quiz Uniform State Statutes
Ans>> National Conference of Commissioners on Uniform State Laws draft generic, content-specific
wording for topical issues to encourage uniformity among the states.
Quiz Purpose of Governing Documents
Ans>> To provide for the legal structure and operation of a community association.
Quiz Governing Documents
Ans>> 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.
Quiz General Hierarchy of Authority of Governing Documents
Ans>> 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).
Quiz The Articles of Incorporation
Ans>> 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.
Quiz Benefits of incorporating
Ans>> 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.
, Quiz Bylaws
Ans>> 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).
Quiz Public Offering Statement
Ans>> Provides association information to first prospective buyers in a new community; required by
state statute; not considered a governing document.
Quiz Rule, also called a rule or regulation
Ans>> Is a specific statement of required behavior or action, a violation of which carries a penalty
(sometimes called a sanction).
Quiz Architectural Guideline
Ans>> Is a rule that applies to the appearance of an owner's lot of the exterior of his or her unit or
improvements.
Quiz Resolution Format
Ans>> Purpose, Authority, Scope and Intent, and Specifications.
Quiz Due Process Procedure
Ans>> A formal process to protect the rights of all parties.
Quiz Alternative Dispute Resolution
STUDY GUIDE / EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
Resolution
Ans>> Is a motion that follows a set format and is formally adopted by the board of directors.
Quiz Community Association
Ans>> Is a legal entity in which the owners enjoy the protection, enhancement, maintenance and
preservation of their homes and property.
Quiz Characteristics of a Community Association
Ans>> Mandatory membership, mutually binding documents and lien-based assessments.
Quiz Lien
Ans>> 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.
Quiz Types of Community Associations
Ans>> Planned Community, Condominium and Cooperative.
,Quiz Proprietary Lease or Occupancy Agreement
Ans>> Defines the member or stockholder's rights and obligations in relation to the living unit.
Quiz Master or Umbrella Associations
Ans>> A master or umbrella association consists of more than one residential community association.
Quiz Mixed-use Developments
Ans>> A mixed-use development usually consists of a mixture of residential and commercial and/or
industrial uses.
Quiz "55 and Older" Communities
Ans>> Must have one person who is 55 years of age or older living in at least 80% of its occupied units.
Quiz Legal Obligations for a Community Association
Ans>> Federal, state, and local statues, regulations, and case law; Governing Documents; Lender
Requirements (FHA, Fannie Mae, Freddie Mac); Standards set by professional bodies (AICPA).
Quiz General State Statutes
Ans>> Applies to all types of associations, including community associations (for example, regular
corporate or not-for-profit corporate statutes).
Quiz Specific State Statutes
Ans>> 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).
,Quiz Uniform State Statutes
Ans>> National Conference of Commissioners on Uniform State Laws draft generic, content-specific
wording for topical issues to encourage uniformity among the states.
Quiz Purpose of Governing Documents
Ans>> To provide for the legal structure and operation of a community association.
Quiz Governing Documents
Ans>> 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.
Quiz General Hierarchy of Authority of Governing Documents
Ans>> 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).
Quiz The Articles of Incorporation
Ans>> 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.
Quiz Benefits of incorporating
Ans>> 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.
, Quiz Bylaws
Ans>> 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).
Quiz Public Offering Statement
Ans>> Provides association information to first prospective buyers in a new community; required by
state statute; not considered a governing document.
Quiz Rule, also called a rule or regulation
Ans>> Is a specific statement of required behavior or action, a violation of which carries a penalty
(sometimes called a sanction).
Quiz Architectural Guideline
Ans>> Is a rule that applies to the appearance of an owner's lot of the exterior of his or her unit or
improvements.
Quiz Resolution Format
Ans>> Purpose, Authority, Scope and Intent, and Specifications.
Quiz Due Process Procedure
Ans>> A formal process to protect the rights of all parties.
Quiz Alternative Dispute Resolution
