M100 Community Association Management
Exam Questions With Correct 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
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.
| | | | | | | | | |
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. | |
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.
| | | | | | | |
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. |
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
| |
a. survey data
| |
All three types of legal sources—state statutes, governing documents, and court
| | | | | | | | | | |
Exam Questions With Correct 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
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.
| | | | | | | | | |
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. | |
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.
| | | | | | | |
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. |
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
| |
a. survey data
| |
All three types of legal sources—state statutes, governing documents, and court
| | | | | | | | | | |
