Comprehensive M100 Exam Questions with Correct Answers: Your
Ultimate Study Guide for Success
2026 UPDATED .
Q1. 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.
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.
Q2. True or False. The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association.
True
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.
Q3. Each of the following are basic types of residential community associations EXCEPT:
a. Planned community
b. Townhouse
,c. Cooperative
d. Condominium
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.
Q4. 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
General resolutions involve routine events such as adoption of the annual budget.
Q5. True or false. The purpose of a community association's governing documents is to provide for the
legal structure and operation of the community.
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.
Q6. 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.
Q7. 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
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.
Q8. 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.
Q9. 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
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.
Q10. True or False. The public offering statement is a governing document, as it often distributed along
with the governing documents.
False
The public offering statement is not a governing document; instead, it is simply a disclosure statement
that provides information on the community association to prospective buyers.
Q11. Each of the following legal sources specify management authority and responsibilities for
community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions
All three types of legal sources—state statutes, governing documents, and court decisions—specify the
authority or power of different parties in a community association and the responsibilities or duties of
the different parties.
Q12. True or false. The basic authority in a community association lies with the developer.
Ultimate Study Guide for Success
2026 UPDATED .
Q1. 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.
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.
Q2. True or False. The primary purpose of a community association is to provide for the governance,
business, and communal aspects of the association.
True
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.
Q3. Each of the following are basic types of residential community associations EXCEPT:
a. Planned community
b. Townhouse
,c. Cooperative
d. Condominium
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.
Q4. 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
General resolutions involve routine events such as adoption of the annual budget.
Q5. True or false. The purpose of a community association's governing documents is to provide for the
legal structure and operation of the community.
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.
Q6. 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.
Q7. 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
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.
Q8. 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.
Q9. 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
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.
Q10. True or False. The public offering statement is a governing document, as it often distributed along
with the governing documents.
False
The public offering statement is not a governing document; instead, it is simply a disclosure statement
that provides information on the community association to prospective buyers.
Q11. Each of the following legal sources specify management authority and responsibilities for
community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions
All three types of legal sources—state statutes, governing documents, and court decisions—specify the
authority or power of different parties in a community association and the responsibilities or duties of
the different parties.
Q12. True or false. The basic authority in a community association lies with the developer.
