FLORIDA CAM [COMMUNITY ASSOCIATION MANAGER]
FINAL EXAM WITH QUESTIONS AND WELL ELABORATED
ANSWERS 2025
An association should establish reserves for - CORRECT ANSWER -
(a) Because associations may be able to avoid or reduce large special
assessments.
An association should establish reserves for - CORRECT ANSWER -
(c) Because associations may be able to avoid or reduce large increases in
regular assessments.
An association should establish reserves for - CORRECT ANSWER -
Because there are statutory requirements that mandate reserves in certain
circumstances.
99. What is a balance sheet? - CORRECT ANSWER -A statement of
the association's financial position at a particular moment in time
98. If an association files its federal income tax return using Form 1120, it
must pay taxes on any excess revenue over expenses unless: -
CORRECT ANSWER -(a) The excess is returned to its members.
Page 1 of 20
,97. An association with a total annual revenue of less than $150,000 is
required to prepare which type of annual financial report? - CORRECT
ANSWER -(c) Cash receipts
96. If an HOA provides a notice instead of a copy of the financial report to its
members, within what period must it provide a copy of the annual financial
report, upon written request of a member? - CORRECT ANSWER -
(c) Ten business days
95. If a condominium board decides to send a notice to its members instead of
a copy of the financial report, what statement must be included? -
CORRECT ANSWER -(b) A copy of the financial report will be mailed or
hand- delivered, without charge, within five business days after receipt of the
member's written request.
94. The annual financial report or a notice of its availability upon request,
must be mailed to the members of a condominium or HOA within: -
CORRECT ANSWER -(b) Twenty-one days after the report is completed but
not more than 120 days after the end of the prior fiscal year or other date
provided in the bylaws
93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(a) It is requested by title and mortgage companies on sales,
transfers, and re-financings.
93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(b) It is legally binding even if factually incorrect.
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, 93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(d) It may include a statement of future costs of correcting a
member's use restriction violations.
92. What is a qualifying offer? - CORRECT ANSWER -(a) A written
offer of a member to pay all amounts secured by a lien of the association plus
amounts accruing during the pendency period of the offer
91. A condominium or cooperative is required to provide written notice to the
member of its intention to foreclose a claim of lien if it is to retain its right to
recover attorney's fees and court costs: - CORRECT ANSWER -(a) 30
days
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(b) In an involuntary
transfer, the new member is jointly and severally liable with the previous
member for all unpaid assessments against the previous member.
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(c) The new member's
liability may be voided by their waiver of their right to use the common area.
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(d) The new member's
liability for unpaid assessments, if the unit was acquired from the association,
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FINAL EXAM WITH QUESTIONS AND WELL ELABORATED
ANSWERS 2025
An association should establish reserves for - CORRECT ANSWER -
(a) Because associations may be able to avoid or reduce large special
assessments.
An association should establish reserves for - CORRECT ANSWER -
(c) Because associations may be able to avoid or reduce large increases in
regular assessments.
An association should establish reserves for - CORRECT ANSWER -
Because there are statutory requirements that mandate reserves in certain
circumstances.
99. What is a balance sheet? - CORRECT ANSWER -A statement of
the association's financial position at a particular moment in time
98. If an association files its federal income tax return using Form 1120, it
must pay taxes on any excess revenue over expenses unless: -
CORRECT ANSWER -(a) The excess is returned to its members.
Page 1 of 20
,97. An association with a total annual revenue of less than $150,000 is
required to prepare which type of annual financial report? - CORRECT
ANSWER -(c) Cash receipts
96. If an HOA provides a notice instead of a copy of the financial report to its
members, within what period must it provide a copy of the annual financial
report, upon written request of a member? - CORRECT ANSWER -
(c) Ten business days
95. If a condominium board decides to send a notice to its members instead of
a copy of the financial report, what statement must be included? -
CORRECT ANSWER -(b) A copy of the financial report will be mailed or
hand- delivered, without charge, within five business days after receipt of the
member's written request.
94. The annual financial report or a notice of its availability upon request,
must be mailed to the members of a condominium or HOA within: -
CORRECT ANSWER -(b) Twenty-one days after the report is completed but
not more than 120 days after the end of the prior fiscal year or other date
provided in the bylaws
93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(a) It is requested by title and mortgage companies on sales,
transfers, and re-financings.
93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(b) It is legally binding even if factually incorrect.
Page 2 of 20
, 93. All of the following are true of an estoppel certificate - CORRECT
ANSWER -(d) It may include a statement of future costs of correcting a
member's use restriction violations.
92. What is a qualifying offer? - CORRECT ANSWER -(a) A written
offer of a member to pay all amounts secured by a lien of the association plus
amounts accruing during the pendency period of the offer
91. A condominium or cooperative is required to provide written notice to the
member of its intention to foreclose a claim of lien if it is to retain its right to
recover attorney's fees and court costs: - CORRECT ANSWER -(a) 30
days
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(b) In an involuntary
transfer, the new member is jointly and severally liable with the previous
member for all unpaid assessments against the previous member.
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(c) The new member's
liability may be voided by their waiver of their right to use the common area.
90. All of the following are true of liabilities acquired upon transfer of title to a
cooperative unit - CORRECT ANSWER -(d) The new member's
liability for unpaid assessments, if the unit was acquired from the association,
Page 3 of 20
