M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM |
COMPLETE EXAM QUESTIONS AND CORRECT ANSWERS
WITH RATIONALES | GRADED A+ | VERIFIED ANSWERS |
LATEST EXAM 2025/2026
Question 1
Which of the following documents is considered the highest in the hierarchy
of governing documents for a community association?
A) Rules and Regulations
B) Articles of Incorporation
C) Bylaws
D) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
E) Board Resolutions
Correct Answer: D) Declaration of Covenants, Conditions, and
Restrictions (CC&Rs)
Rationale: The Declaration (CC&Rs) is the foundational document that
establishes the association, defines property rights and restrictions,
and is typically considered superior to all other governing
documents.
Question 2
What is the primary purpose of the Board of Directors in a community
association?
A) To manage individual homeowner finances.
B) To enforce governing documents and manage the association's affairs on
behalf of the members.
C) To provide personal services to residents.
D) To set property values.
E) To mediate disputes between neighbors.
Correct Answer: B) To enforce governing documents and manage the
association's affairs on behalf of the members.
Rationale: The Board of Directors is elected by the members to
oversee the association's operations, ensure compliance with
,governing documents, and make decisions in the best interest of
the community.
Question 3
Which governing document typically defines the powers and duties of the
Board of Directors and the procedures for meetings and elections?
A) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
B) Rules and Regulations
C) Articles of Incorporation
D) Bylaws
E) Association Handbook
Correct Answer: D) Bylaws
Rationale: Bylaws contain the specific rules for the internal operation
and management of the association, including the structure of the
Board, officer duties, meeting procedures, and election processes.
Question 4
What is a "reserve study" in the context of community association
management?
A) A financial audit of the association's current operating budget.
B) A report that assesses the physical condition and remaining useful life of
the association's major common area components and estimates their
replacement costs.
C) A market analysis of property values in the community.
D) A study of resident satisfaction.
E) A legal review of the association's governing documents.
Correct Answer: B) A report that assesses the physical condition and
remaining useful life of the association's major common area
components and estimates their replacement costs.
Rationale: A reserve study is a long-term financial planning tool that
identifies the association's major capital assets, projects their
,remaining useful life, and estimates the cost and timing of their
replacement or repair, guiding reserve fund contributions.
Question 5
What is the primary source of funding for a community association's
operating expenses and reserve contributions?
A) Property taxes.
B) Special events.
C) Assessments (dues) paid by homeowners.
D) Bank loans.
E) Government grants.
Correct Answer: C) Assessments (dues) paid by homeowners.
Rationale: Regular assessments (dues) collected from property
owners are the main and most consistent source of revenue for
community associations to cover both operational expenses and
contributions to reserve funds.
Question 6
Which type of insurance policy is essential for a community association to
protect against property damage to common areas and liability claims?
A) Individual homeowner's insurance.
B) Directors and Officers (D&O) Liability Insurance.
C) Master insurance policy.
D) Personal umbrella policy.
E) Flood insurance (if not in a flood zone).
Correct Answer: C) Master insurance policy.
Rationale: A master insurance policy (often a package policy)
provides coverage for property damage to common elements and
liability for the association as a whole, typically distinct from
individual homeowner policies.
Question 7
The "common elements" or "common areas" of a community association are:
, A) Property owned by individual homeowners.
B) Areas owned and maintained by the association for the use and benefit of
all members.
C) Public parks adjacent to the community.
D) Rental properties within the community.
E) Commercial spaces within the community.
Correct Answer: B) Areas owned and maintained by the association for
the use and benefit of all members.
Rationale: Common elements are those parts of the property that are
jointly owned or managed by the association for the collective use
and enjoyment of all residents (e.g., clubhouses, pools, green
spaces, shared roofs, building exteriors in condominiums).
Question 8
What is the role of a "community manager" (or association manager)?
A) To make all decisions for the Board of Directors.
B) To serve as an elected member of the Board.
C) To implement Board decisions, manage daily operations, and provide
professional guidance to the Board.
D) To mediate all disputes between residents.
E) To directly enforce rules without Board approval.
Correct Answer: C) To implement Board decisions, manage daily
operations, and provide professional guidance to the Board.
Rationale: A community manager is a professional hired by the Board
to carry out its directives, handle administrative tasks, oversee
maintenance, and provide expert advice on association governance
and operations.
Question 9
What is a "fiduciary duty" of Board members?
A) To prioritize their personal interests over the association's.
B) To act in the best financial interest of the association and its members.
COMPLETE EXAM QUESTIONS AND CORRECT ANSWERS
WITH RATIONALES | GRADED A+ | VERIFIED ANSWERS |
LATEST EXAM 2025/2026
Question 1
Which of the following documents is considered the highest in the hierarchy
of governing documents for a community association?
A) Rules and Regulations
B) Articles of Incorporation
C) Bylaws
D) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
E) Board Resolutions
Correct Answer: D) Declaration of Covenants, Conditions, and
Restrictions (CC&Rs)
Rationale: The Declaration (CC&Rs) is the foundational document that
establishes the association, defines property rights and restrictions,
and is typically considered superior to all other governing
documents.
Question 2
What is the primary purpose of the Board of Directors in a community
association?
A) To manage individual homeowner finances.
B) To enforce governing documents and manage the association's affairs on
behalf of the members.
C) To provide personal services to residents.
D) To set property values.
E) To mediate disputes between neighbors.
Correct Answer: B) To enforce governing documents and manage the
association's affairs on behalf of the members.
Rationale: The Board of Directors is elected by the members to
oversee the association's operations, ensure compliance with
,governing documents, and make decisions in the best interest of
the community.
Question 3
Which governing document typically defines the powers and duties of the
Board of Directors and the procedures for meetings and elections?
A) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
B) Rules and Regulations
C) Articles of Incorporation
D) Bylaws
E) Association Handbook
Correct Answer: D) Bylaws
Rationale: Bylaws contain the specific rules for the internal operation
and management of the association, including the structure of the
Board, officer duties, meeting procedures, and election processes.
Question 4
What is a "reserve study" in the context of community association
management?
A) A financial audit of the association's current operating budget.
B) A report that assesses the physical condition and remaining useful life of
the association's major common area components and estimates their
replacement costs.
C) A market analysis of property values in the community.
D) A study of resident satisfaction.
E) A legal review of the association's governing documents.
Correct Answer: B) A report that assesses the physical condition and
remaining useful life of the association's major common area
components and estimates their replacement costs.
Rationale: A reserve study is a long-term financial planning tool that
identifies the association's major capital assets, projects their
,remaining useful life, and estimates the cost and timing of their
replacement or repair, guiding reserve fund contributions.
Question 5
What is the primary source of funding for a community association's
operating expenses and reserve contributions?
A) Property taxes.
B) Special events.
C) Assessments (dues) paid by homeowners.
D) Bank loans.
E) Government grants.
Correct Answer: C) Assessments (dues) paid by homeowners.
Rationale: Regular assessments (dues) collected from property
owners are the main and most consistent source of revenue for
community associations to cover both operational expenses and
contributions to reserve funds.
Question 6
Which type of insurance policy is essential for a community association to
protect against property damage to common areas and liability claims?
A) Individual homeowner's insurance.
B) Directors and Officers (D&O) Liability Insurance.
C) Master insurance policy.
D) Personal umbrella policy.
E) Flood insurance (if not in a flood zone).
Correct Answer: C) Master insurance policy.
Rationale: A master insurance policy (often a package policy)
provides coverage for property damage to common elements and
liability for the association as a whole, typically distinct from
individual homeowner policies.
Question 7
The "common elements" or "common areas" of a community association are:
, A) Property owned by individual homeowners.
B) Areas owned and maintained by the association for the use and benefit of
all members.
C) Public parks adjacent to the community.
D) Rental properties within the community.
E) Commercial spaces within the community.
Correct Answer: B) Areas owned and maintained by the association for
the use and benefit of all members.
Rationale: Common elements are those parts of the property that are
jointly owned or managed by the association for the collective use
and enjoyment of all residents (e.g., clubhouses, pools, green
spaces, shared roofs, building exteriors in condominiums).
Question 8
What is the role of a "community manager" (or association manager)?
A) To make all decisions for the Board of Directors.
B) To serve as an elected member of the Board.
C) To implement Board decisions, manage daily operations, and provide
professional guidance to the Board.
D) To mediate all disputes between residents.
E) To directly enforce rules without Board approval.
Correct Answer: C) To implement Board decisions, manage daily
operations, and provide professional guidance to the Board.
Rationale: A community manager is a professional hired by the Board
to carry out its directives, handle administrative tasks, oversee
maintenance, and provide expert advice on association governance
and operations.
Question 9
What is a "fiduciary duty" of Board members?
A) To prioritize their personal interests over the association's.
B) To act in the best financial interest of the association and its members.
