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M100 COMMUNITY ASSOCIATION
MANAGEMENT EXAM QUESTIONS WITH
ANSWERS.
Each of the following are key characteristics of community
associations EXCEPT:
a. Mandatory lien-based economic charges or assessments
are levied on each owner in order to operate and maintain the
community association.
b. Membership in the community association is mandatory
and automatic for all owners.
c. A requirement of community association ownership is
serving on the board of directors.
d. Certain documents bind all owners to be governed by the
community association.
c. A requirement of community association ownership is serving
on the board of directors.
This is one of the three key characteristics common to all
community associations. Members of an association are not
legally required to serve on the board of directors; however, the
overall success on the community is dependent upon the
members' involvement its affairs.
True or False. The primary purpose of a community
association is to provide for the governance, business, and
communal aspects of the association.
True
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Providing for the governance, business, and communal aspects of
the association is achieved 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.
Each of the following are basic types of residential
community associations EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium
b. Townhouse
While many community associations are indeed townhouse
communities, not all such developments are necessarily
associations. A community association is defined in terms of
ownership rights—not architectural style.
Adoption of the annual budget is an example of which of the
following type of resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution
d. general resolution
General resolutions involve routine events such as adoption of the
annual budget.
True or false. The purpose of a community association's
governing documents is to provide for the legal structure
and operation of the community.
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True
The governing documents define the rights and obligations of
both the community association and its owners, create a binding
relationship between each owner and the community association,
and establish the mechanisms for governing and funding the
community association's operations.
True or false. According to the general hierarchy of authority
for governing documents, the bylaws would control in a
conflict with the recorded map, plat, or plan.
False
As a general rule, documents lower in the hierarchy of authority
cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy,
and therefore would prevail in such a conflict.
Complete the following sentence: A __________ state statute
is one that applies only to one or more types of community
associations.
a. general
b. complex
c. specific
d. uniform
c. specific
A specific state statute is one that applies only to one or more
types of community associations. For example, most states have
a condominium act which provides for the establishment and
operation of condominiums as legal entities. These acts vary in
terms of their complexity—the simplest ones just allow for the
creation of condominiums.
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True or false. A proprietary lease or occupancy agreement in
a cooperative defines the member or stockholder's rights
and obligations in relation to the living unit.
True
In a cooperative, the proprietary lease or occupancy agreement
serves generally the same purpose as the declaration, CC&R, or
master deed in other community associations. Among other
things, the proprietary lease or occupancy agreement identifies
the premises that the stockholder is permitted to occupy
exclusively, defines the term of the lease and the rent that is
payable by the stockholder, and establishes the powers and
obligations of the cooperative's board of directors, including
assessment rights.
Complete the following sentence: The __________ bring the
community association into existence, define its basic
purposes and powers, and indicate whether stock will be
issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation
d. articles of incorporation
A community association's corporate structure is established
when a developer sets up the association. The developer files
articles of incorporation—sometimes called a corporate charter—
with the appropriate state corporation agency.
M100 COMMUNITY ASSOCIATION
MANAGEMENT EXAM QUESTIONS WITH
ANSWERS.
Each of the following are key characteristics of community
associations EXCEPT:
a. Mandatory lien-based economic charges or assessments
are levied on each owner in order to operate and maintain the
community association.
b. Membership in the community association is mandatory
and automatic for all owners.
c. A requirement of community association ownership is
serving on the board of directors.
d. Certain documents bind all owners to be governed by the
community association.
c. A requirement of community association ownership is serving
on the board of directors.
This is one of the three key characteristics common to all
community associations. Members of an association are not
legally required to serve on the board of directors; however, the
overall success on the community is dependent upon the
members' involvement its affairs.
True or False. The primary purpose of a community
association is to provide for the governance, business, and
communal aspects of the association.
True
, Page | 2
Providing for the governance, business, and communal aspects of
the association is achieved 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.
Each of the following are basic types of residential
community associations EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium
b. Townhouse
While many community associations are indeed townhouse
communities, not all such developments are necessarily
associations. A community association is defined in terms of
ownership rights—not architectural style.
Adoption of the annual budget is an example of which of the
following type of resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution
d. general resolution
General resolutions involve routine events such as adoption of the
annual budget.
True or false. The purpose of a community association's
governing documents is to provide for the legal structure
and operation of the community.
, Page | 3
True
The governing documents define the rights and obligations of
both the community association and its owners, create a binding
relationship between each owner and the community association,
and establish the mechanisms for governing and funding the
community association's operations.
True or false. According to the general hierarchy of authority
for governing documents, the bylaws would control in a
conflict with the recorded map, plat, or plan.
False
As a general rule, documents lower in the hierarchy of authority
cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy,
and therefore would prevail in such a conflict.
Complete the following sentence: A __________ state statute
is one that applies only to one or more types of community
associations.
a. general
b. complex
c. specific
d. uniform
c. specific
A specific state statute is one that applies only to one or more
types of community associations. For example, most states have
a condominium act which provides for the establishment and
operation of condominiums as legal entities. These acts vary in
terms of their complexity—the simplest ones just allow for the
creation of condominiums.
, Page | 4
True or false. A proprietary lease or occupancy agreement in
a cooperative defines the member or stockholder's rights
and obligations in relation to the living unit.
True
In a cooperative, the proprietary lease or occupancy agreement
serves generally the same purpose as the declaration, CC&R, or
master deed in other community associations. Among other
things, the proprietary lease or occupancy agreement identifies
the premises that the stockholder is permitted to occupy
exclusively, defines the term of the lease and the rent that is
payable by the stockholder, and establishes the powers and
obligations of the cooperative's board of directors, including
assessment rights.
Complete the following sentence: The __________ bring the
community association into existence, define its basic
purposes and powers, and indicate whether stock will be
issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation
d. articles of incorporation
A community association's corporate structure is established
when a developer sets up the association. The developer files
articles of incorporation—sometimes called a corporate charter—
with the appropriate state corporation agency.
