Manager (CAM) Exam With Actual
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1. Which entity regulates Community Association Managers in
California?
A. California Department of Real Estate
B. Department of Consumer Affairs
C. Bureau of Real Estate Appraisers
D. Secretary of State
Answer: B
Rationale: Community Association Managers are regulated
under the California Department of Consumer Affairs through
the Davis-Stirling Act framework and related regulations.
2. The Davis-Stirling Common Interest Development Act primarily
governs:
A. Rental housing
B. Commercial property management
C. Common interest developments
D. Real estate brokerage
Answer: C
Rationale: The Davis-Stirling Act sets forth laws governing
, common interest developments such as condominiums, planned
developments, and cooperatives.
3. A community association’s governing documents typically include
all of the following EXCEPT:
A. Articles of Incorporation
B. CC&Rs
C. Bylaws
D. Grant deed
Answer: D
Rationale: A grant deed transfers ownership and is not a
governing document of the association.
4. Which document has the highest authority within a community
association?
A. Rules and regulations
B. Bylaws
C. CC&Rs
D. Board resolutions
Answer: C
Rationale: CC&Rs take precedence over all other governing
documents except applicable laws.
5. A quorum for a membership meeting is usually defined in the:
A. Operating budget
B. CC&Rs or bylaws
C. Board minutes
D. Reserve study
Answer: B
Rationale: Quorum requirements are established in the CC&Rs or
bylaws of the association.
, 6. What is the primary duty of the board of directors?
A. Enforce state law
B. Manage daily operations
C. Act in the best interests of the association
D. Perform maintenance personally
Answer: C
Rationale: Board members have a fiduciary duty to act in the
best interests of the association.
7. A Community Association Manager primarily acts under the
authority of the:
A. Homeowners
B. State regulator
C. Board of directors
D. Local government
Answer: C
Rationale: The manager acts as an agent of the board and
follows board direction.
8. Which of the following is an example of a fiduciary duty?
A. Marketing units
B. Loyalty and care
C. Collecting rent
D. Advertising homes
Answer: B
Rationale: Fiduciary duties include loyalty, care, and acting in
good faith.
9. Reserve funds are used primarily for:
A. Daily operating expenses
B. Legal defense
C. Major repairs and replacements