CAI EXAM FLASHCARDS | 379 QUESTIONS
AND ANSWERS | 2026 UPDATE | WITH
COMPLETE SOLUTION ALREADY GRADED
A+
What is a condominium? - ANSWERS-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? - ANSWERS-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? - ANSWERS-
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: - ANSWERS-1.
Master or umbrella associations
2. Mixed-use developments
3. "55 and Older" Communities
,What is a Master or Umbrella Association? - ANSWERS-A master or
umbrella association consists of more than one residential community
association.
What is a Mixed-Use Development? - ANSWERS-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? - ANSWERS-Must have one
person who is 55 years of age or older living in at least 80% of its
occupied units.
Community Association - ANSWERS-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?
- ANSWERS-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? - ANSWERS-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? - ANSWERS-
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? -
ANSWERS-1. Planned Community
2. Condominium
3. Cooperative
What is a planned community? - ANSWERS-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 the Equal Employment Opportunity Commission (EEOC)? -
ANSWERS-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 is the Fair Debt Collection Practices Act (FDCPA)? - ANSWERS-
The purpose of the FDCPA is to protect debtors from unscrupulous
debt collectors and to impose a consistent and fair method to collect
debts.
What is the Fair Labor and Standards Act (FSLA)? - ANSWERS-FLSA
dictates standards for the basic minimum wage and overtime pay. It
affects most private and public employment. It requires employers to
pay covered employees who are not otherwise exempt at least the
federal minimum wage and overtime pay of one-and-one-half-times the
regular rate of pay. Some states have higher basic minimum wage
amounts.
What is the Family and Medical Leave Act (FMLA)? - ANSWERS-
Administered by the Wage and Hour Division of the Department of
Labor, FMLA requires employers of 50 or more employees to provide up
to 12 weeks of unpaid, job-protected leave to eligible employees for
the birth or adoption of a child or for the serious illness of the
employee or a spouse, child, or parent.
What is the Federal Insurance Contributions Act (FICA)? - ANSWERS-
This act requires employers and employees to make matching
AND ANSWERS | 2026 UPDATE | WITH
COMPLETE SOLUTION ALREADY GRADED
A+
What is a condominium? - ANSWERS-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? - ANSWERS-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? - ANSWERS-
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: - ANSWERS-1.
Master or umbrella associations
2. Mixed-use developments
3. "55 and Older" Communities
,What is a Master or Umbrella Association? - ANSWERS-A master or
umbrella association consists of more than one residential community
association.
What is a Mixed-Use Development? - ANSWERS-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? - ANSWERS-Must have one
person who is 55 years of age or older living in at least 80% of its
occupied units.
Community Association - ANSWERS-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?
- ANSWERS-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? - ANSWERS-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? - ANSWERS-
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? -
ANSWERS-1. Planned Community
2. Condominium
3. Cooperative
What is a planned community? - ANSWERS-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 the Equal Employment Opportunity Commission (EEOC)? -
ANSWERS-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 is the Fair Debt Collection Practices Act (FDCPA)? - ANSWERS-
The purpose of the FDCPA is to protect debtors from unscrupulous
debt collectors and to impose a consistent and fair method to collect
debts.
What is the Fair Labor and Standards Act (FSLA)? - ANSWERS-FLSA
dictates standards for the basic minimum wage and overtime pay. It
affects most private and public employment. It requires employers to
pay covered employees who are not otherwise exempt at least the
federal minimum wage and overtime pay of one-and-one-half-times the
regular rate of pay. Some states have higher basic minimum wage
amounts.
What is the Family and Medical Leave Act (FMLA)? - ANSWERS-
Administered by the Wage and Hour Division of the Department of
Labor, FMLA requires employers of 50 or more employees to provide up
to 12 weeks of unpaid, job-protected leave to eligible employees for
the birth or adoption of a child or for the serious illness of the
employee or a spouse, child, or parent.
What is the Federal Insurance Contributions Act (FICA)? - ANSWERS-
This act requires employers and employees to make matching
