CMCA MAIN EXAMINATION SET QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Robert's Rules of Order - ✔✔common rules and procedures for deliberation and
debate in order to place the whole membership on the same footing and speaking the
same language
✔✔second a motion - ✔✔needed immediately after a proposal by another member of
the body for consideration by the assembly
✔✔table a motion - ✔✔incomplete items on the agenda that are rescheduled for
another meeting
✔✔timed agenda - ✔✔a more specific agenda that limits focus on specific areas, so as
to move the meeting along at a more thorough and prompt pace
✔✔Articles of Incorporation - ✔✔brings the association into existence, defines its basic
purposes and powers, indicates whether stock will be issued, and indicates whether
there will be a board of directors
✔✔Bylaws - ✔✔formally adopted governing regulations for the administration and
management of a community association
✔✔CC&Rs (Covenants, Conditions & Restrictions) - ✔✔the governing documents that
dictate how the homeowners association operates and what rules the owners—and
their tenants and guests —must obey; these legal documents might also be called the
bylaws, the master deed, the houses rules or another name and are legally enforceable
by the homeowners association, unless a specific provision conflicts with federal, state
or local laws
✔✔community association - ✔✔a group of owners who wish to provide a communal
basis for preserving, maintaining, and enhancing their homes and property
✔✔condominium - ✔✔a living unit fully owned by an individual with an undivided
interest in the common elements of the community; the community association itself
owns no real estate as an association
✔✔cooperative - ✔✔wherein an individual owns stock or membership and holds a
proprietary lease or occupancy agreement for his or her living unit
✔✔Declaration - ✔✔used interchangeably with CC & Rs
✔✔Governing Documents - ✔✔documents which provide for the legal structure and
operation of the community
,✔✔indemnification - ✔✔to exempt an individual or entity from responsibility for claims
made against the organization and to reimburse the individual or entity for damages or
expenses incurred as a result of such claims
✔✔master association - ✔✔an organization of homeowners in a large condominium or
planned unit development (PUD) which includes representatives from other, smaller
homeowner organizations
✔✔mixed use development - ✔✔a development which is designed to mix two or more
"uses" of land together (i.e. a shopping center which offers office space for dentists)
✔✔planned community - ✔✔the most common type of community association, where
an owner owns his or her lot and/or living unit and the community owns any common
areas, such as tennis courts and roads for the use and benefit of the lot owners
✔✔proprietary lease - ✔✔a rental agreement between a cooperative housing
corporation and a shareholder allowing use of a certain unit in the premises
✔✔public offering statement - ✔✔a disclosure statement prepared by a developer that
contains all material facts about a property offered for sale and that must be provided to
a prospective purchaser in accordance with applicable state or federal law
✔✔resolution - ✔✔a motion that follows a set format and is formally adopted by the
board of directors
✔✔statute - ✔✔a formal written enactment of a legislative authority that governs a
country, state, city or county
✔✔umbrella association - ✔✔a cluster of community association types that can include
aspects of homeowners associations, condominiums and cooperatives
✔✔ad hoc committee - ✔✔used when an objective needs consideration and no
standing organized group can absorb that issue into its scope; usually used on a short-
term basis, such as temporary oversight of an issue or review of the standing rules of
that community
✔✔board liaison system - ✔✔directors are assigned to certain committees to guide the
committee on Board policy and procedures and to report back to the Board; directors
serving must distinguish their role from the role of the committee chairperson
✔✔business judgement rule - ✔✔if a board has exercised reasonable decision making,
the court will generally not consider the board negligent in its fiduciary duty, nor will the
court substitute its judgment for that of the board; however, the board must demonstrate
, how it has taken care in reaching a decision; it is up to the court to decide if the board
has been reasonable
✔✔fiduciary duty - ✔✔requires directors to act in the best interests and for the benefit of
the corporation, thus the community as a whole; this has two components: one, the
members are required to avoid conflicts of interest and acting out of self-interest; and
two the members are also required to act as reasonable people in managing the
association's affairs
✔✔management ethics - ✔✔the rules or standards that govern the conduct of members
of a profession; the assumption is that the special expertise held by members of the
profession holds them to a high standard of trust by others
✔✔management audit - ✔✔a review of governing documents and existing policies and
procedures, current condition of the property, owner/resident satisfaction, and fiscal
operations; can be done by the board and manager together, or a third-party
management consultant
✔✔management plan - ✔✔a statement of goals and objectives approved by the board
including the yearly cycle of tasks that should be performed on the community
association's behalf
✔✔standing committee - ✔✔organized groups that have a continued existence and are
not related to the accomplishment of a specific, once-only task (e.g., budget and
nomination committees)
✔✔alternative dispute resolution - ✔✔mediation, arbitration and other ways of solving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
✔✔appeal - ✔✔a request for a review of a case by a higher authority—if permitted by
the governing documents or statute
✔✔default hearing - ✔✔held when the alleged violator fails to appear to scheduled
meeting
✔✔due process procedure - ✔✔a formal practice designed to protect the rights of all
parties involved
✔✔hearing notice - ✔✔a written notice to an alleged violator that a meeting will be held
to consider his or her alleged violation
✔✔hierarchy of authority - ✔✔rules and architectural guidelines may not contradict or
be in conflict with the legal sources that take precedence over them; although rules and
architectural guidelines are ranked lower in the for community associations, they may
SOLUTIONS GRADED A+
✔✔Robert's Rules of Order - ✔✔common rules and procedures for deliberation and
debate in order to place the whole membership on the same footing and speaking the
same language
✔✔second a motion - ✔✔needed immediately after a proposal by another member of
the body for consideration by the assembly
✔✔table a motion - ✔✔incomplete items on the agenda that are rescheduled for
another meeting
✔✔timed agenda - ✔✔a more specific agenda that limits focus on specific areas, so as
to move the meeting along at a more thorough and prompt pace
✔✔Articles of Incorporation - ✔✔brings the association into existence, defines its basic
purposes and powers, indicates whether stock will be issued, and indicates whether
there will be a board of directors
✔✔Bylaws - ✔✔formally adopted governing regulations for the administration and
management of a community association
✔✔CC&Rs (Covenants, Conditions & Restrictions) - ✔✔the governing documents that
dictate how the homeowners association operates and what rules the owners—and
their tenants and guests —must obey; these legal documents might also be called the
bylaws, the master deed, the houses rules or another name and are legally enforceable
by the homeowners association, unless a specific provision conflicts with federal, state
or local laws
✔✔community association - ✔✔a group of owners who wish to provide a communal
basis for preserving, maintaining, and enhancing their homes and property
✔✔condominium - ✔✔a living unit fully owned by an individual with an undivided
interest in the common elements of the community; the community association itself
owns no real estate as an association
✔✔cooperative - ✔✔wherein an individual owns stock or membership and holds a
proprietary lease or occupancy agreement for his or her living unit
✔✔Declaration - ✔✔used interchangeably with CC & Rs
✔✔Governing Documents - ✔✔documents which provide for the legal structure and
operation of the community
,✔✔indemnification - ✔✔to exempt an individual or entity from responsibility for claims
made against the organization and to reimburse the individual or entity for damages or
expenses incurred as a result of such claims
✔✔master association - ✔✔an organization of homeowners in a large condominium or
planned unit development (PUD) which includes representatives from other, smaller
homeowner organizations
✔✔mixed use development - ✔✔a development which is designed to mix two or more
"uses" of land together (i.e. a shopping center which offers office space for dentists)
✔✔planned community - ✔✔the most common type of community association, where
an owner owns his or her lot and/or living unit and the community owns any common
areas, such as tennis courts and roads for the use and benefit of the lot owners
✔✔proprietary lease - ✔✔a rental agreement between a cooperative housing
corporation and a shareholder allowing use of a certain unit in the premises
✔✔public offering statement - ✔✔a disclosure statement prepared by a developer that
contains all material facts about a property offered for sale and that must be provided to
a prospective purchaser in accordance with applicable state or federal law
✔✔resolution - ✔✔a motion that follows a set format and is formally adopted by the
board of directors
✔✔statute - ✔✔a formal written enactment of a legislative authority that governs a
country, state, city or county
✔✔umbrella association - ✔✔a cluster of community association types that can include
aspects of homeowners associations, condominiums and cooperatives
✔✔ad hoc committee - ✔✔used when an objective needs consideration and no
standing organized group can absorb that issue into its scope; usually used on a short-
term basis, such as temporary oversight of an issue or review of the standing rules of
that community
✔✔board liaison system - ✔✔directors are assigned to certain committees to guide the
committee on Board policy and procedures and to report back to the Board; directors
serving must distinguish their role from the role of the committee chairperson
✔✔business judgement rule - ✔✔if a board has exercised reasonable decision making,
the court will generally not consider the board negligent in its fiduciary duty, nor will the
court substitute its judgment for that of the board; however, the board must demonstrate
, how it has taken care in reaching a decision; it is up to the court to decide if the board
has been reasonable
✔✔fiduciary duty - ✔✔requires directors to act in the best interests and for the benefit of
the corporation, thus the community as a whole; this has two components: one, the
members are required to avoid conflicts of interest and acting out of self-interest; and
two the members are also required to act as reasonable people in managing the
association's affairs
✔✔management ethics - ✔✔the rules or standards that govern the conduct of members
of a profession; the assumption is that the special expertise held by members of the
profession holds them to a high standard of trust by others
✔✔management audit - ✔✔a review of governing documents and existing policies and
procedures, current condition of the property, owner/resident satisfaction, and fiscal
operations; can be done by the board and manager together, or a third-party
management consultant
✔✔management plan - ✔✔a statement of goals and objectives approved by the board
including the yearly cycle of tasks that should be performed on the community
association's behalf
✔✔standing committee - ✔✔organized groups that have a continued existence and are
not related to the accomplishment of a specific, once-only task (e.g., budget and
nomination committees)
✔✔alternative dispute resolution - ✔✔mediation, arbitration and other ways of solving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
✔✔appeal - ✔✔a request for a review of a case by a higher authority—if permitted by
the governing documents or statute
✔✔default hearing - ✔✔held when the alleged violator fails to appear to scheduled
meeting
✔✔due process procedure - ✔✔a formal practice designed to protect the rights of all
parties involved
✔✔hearing notice - ✔✔a written notice to an alleged violator that a meeting will be held
to consider his or her alleged violation
✔✔hierarchy of authority - ✔✔rules and architectural guidelines may not contradict or
be in conflict with the legal sources that take precedence over them; although rules and
architectural guidelines are ranked lower in the for community associations, they may
