CAM COMMUNITY ASSOCIATION MANAGER ACTUAL
FINAL PAPER QUESTIONS AND SOLUTIONS GRADED A+TIP
✔✔Does the AOA exist in the printed laws of the State of Georgia? - ✔✔No. As of July
1st, 1975, new condominiums had to be created according to the GCA (Georgia
Condominium Act).
✔✔GCA (Georgia Condominium Act) - ✔✔Created July 1st, 1975, declared any
condominiums created must create and file three documents in the Superior Court land
records of every county where the property is located. The declarant (normally the
developer) must also incorporate an entity to operate the condominium.
✔✔What are the Three Documents required to create a Condominium according to the
GCA? - ✔✔1. Declaration
2. Floor Plans
3. Plats
✔✔Does the GCA require any other legal documents in addition to the declaration, floor
plans, and plats? - ✔✔Yes! The condominium must be incorporated as a nonprofit
mandatory membership corporation. Also, before the first conveyance of any unit, the
declarant is required to appoint the first board of directors, elect the officers, and
organize the association.
✔✔In order to create a corporation, does one need to file the Articles of Incorporation
with the Georgia Secretary of State and do the Bylaws need to be adopted to operate
the corporation? - ✔✔Yes. They do! And copied files must be kept on file for any
owners to review at request
✔✔Articles of Incorporation list: - ✔✔Initial directors, the official address of the
corporation, the registered agent, and the name of the incorporator
✔✔Bylaws typically contain provisions about how the corporation should operate and
specifics about: - ✔✔-Annual, special, and board meetings
-Notice, quorum, proxy, and voting requirements for meetings
-Number, terms, election, and authority of board members and officers
-Books and records that need to be maintained by the corporation
✔✔If there is a conflict when comparing Association documents, which document
trumps the others? - ✔✔The order of authority for association documents is:
1. Declaration
2. Bylaws
3. Articles of Incorporation
4. Rules and Regulations
5. Architectural Guidelines
,✔✔When creating a condominium, is the declarant required to disclose certain
information to resale buyers (aka, second purchaser of a unit)? - ✔✔NO! The declarant
only has to disclose to the FIRST purchaser of a new condominium unit.
✔✔What types of property can be created as a Homeowner Association? - ✔✔Any type
of property can become part of a HOA, as long as the owner has the deed/title to the
dirt under the improvements and the airspace above them ("Heaven to Hell"); it can
NOT be a property that has stacked units on top of each other
✔✔Does an HOA need to become incorporated in order to be a corporation? - ✔✔Yes.
They must be recorded in the land records of their county in order to become
established (the Articles of Incorporation and the Bylaws)
✔✔What are the two reasons that HOA's should switch to POA's? - ✔✔1. Enforceable
Amendments (In HOA's, covenants are only enforceable against those who agree to
them. In a POA, they are enforceable against all owners)
2. Perpetual Duration (Covenants last forever, unlike HOA's)
✔✔How long do HOA covenants last? - ✔✔20 years. Then must renew
✔✔When was the GPOAA (Georgia Property Owner's Association Act) enacted into
Georgia Law? - ✔✔1994
✔✔Does the POA have to file liens at the county courthouse for unpaid assessments? -
✔✔No! They can create an automatic statutory lien against a delinquent owner's lot
✔✔If a GCA is owned by the owners, does this mean a Cooperative is owned by the
owners? - ✔✔No. A cooperative/coop is owned explicitly by a corporation. Any type of
property can be a Coop. The members of the coop do not own any real property.
Instead, members purchase shares of stock or membership shares in the association
(corporation) and then the Corp gives them a lease to live there. The members pay fees
for upkeep and comply with explicit rules and regs set by the coop.
✔✔What fraction of owners in a GCA must vote to amend a covenant? - ✔✔2/3 or any
greater majority; and is therefore enforceable against all owners
✔✔What fraction of owners in a POAA must vote to amend a covenant? - ✔✔2/3 or any
greater majority; and is therefore enforceable against all owners
✔✔If an HOA passes an amendment with 65% of owners consenting, what percentage
of owners are held accountable/required to follow this new amendment? - ✔✔65%; this
is because those that did not agree or consent to it in an HOA are NOT required to
follow the new amendment.
, ✔✔Like a POAA, are GCA covenants perpetual? - ✔✔Yes! They last forever, unless
stated otherwise.
✔✔In order to terminate a Condominium (GCA), owners are required to sign a
termination agreement to voluntarily terminate and owners/mortgagees must vote by
what fraction? - ✔✔4/5; if they do successfully terminate a GCA, then they will own
common elements as tenants-in-common
✔✔What steps must be taken to dissolve a community association? - ✔✔1. BOD
recommends dissolution to the members
2. Majority of members (usually a high percentage in bylaws) must approve dissolution
3. BOD adopts a plan of dissolution to distribute assets and liabilities
4. Notice of Intent to Dissolve is filed with the Secretary of State and published
5. BOD liquidates assets and pays all corporate debts
6. Articles of Dissolution are filed with the Secretary of State
✔✔If a community association fails to pay the annual registration fees to the Secretary
of State, What can happen? - ✔✔The community association may be administratively
dissolved. However, upon completion of a reinstatement form and dues and fees paid,
the Corporation will be reinstated back to the date of its dissolvement, as if dissolution
never happened.
✔✔Reinstatement is not available for corps that have been administratively dissolved
for more than *BLANK* years. - ✔✔5
✔✔Can a GCA be any type of architectural style? - ✔✔Yes.
✔✔True or False: The GCA states that if declaration allows it, then for the first 24
months, declarant can be exempt from assessments if the declarant pays the difference
between fees assessed against other owners and actual common expenses - ✔✔True
✔✔In a POAA, is there an exemption for paying assessments? - ✔✔Yes. All owners are
required to pay assessments to the association unless they request an exemption in
writing and surrender the voting rights for the lot for the term of the exemption
✔✔Typically, who elects the first board of directors? - ✔✔The developer
✔✔Turnover - ✔✔A term used in the community association industry to define when the
board of directions of a community changes from a developer-appointed group to an
owner-elected group
FINAL PAPER QUESTIONS AND SOLUTIONS GRADED A+TIP
✔✔Does the AOA exist in the printed laws of the State of Georgia? - ✔✔No. As of July
1st, 1975, new condominiums had to be created according to the GCA (Georgia
Condominium Act).
✔✔GCA (Georgia Condominium Act) - ✔✔Created July 1st, 1975, declared any
condominiums created must create and file three documents in the Superior Court land
records of every county where the property is located. The declarant (normally the
developer) must also incorporate an entity to operate the condominium.
✔✔What are the Three Documents required to create a Condominium according to the
GCA? - ✔✔1. Declaration
2. Floor Plans
3. Plats
✔✔Does the GCA require any other legal documents in addition to the declaration, floor
plans, and plats? - ✔✔Yes! The condominium must be incorporated as a nonprofit
mandatory membership corporation. Also, before the first conveyance of any unit, the
declarant is required to appoint the first board of directors, elect the officers, and
organize the association.
✔✔In order to create a corporation, does one need to file the Articles of Incorporation
with the Georgia Secretary of State and do the Bylaws need to be adopted to operate
the corporation? - ✔✔Yes. They do! And copied files must be kept on file for any
owners to review at request
✔✔Articles of Incorporation list: - ✔✔Initial directors, the official address of the
corporation, the registered agent, and the name of the incorporator
✔✔Bylaws typically contain provisions about how the corporation should operate and
specifics about: - ✔✔-Annual, special, and board meetings
-Notice, quorum, proxy, and voting requirements for meetings
-Number, terms, election, and authority of board members and officers
-Books and records that need to be maintained by the corporation
✔✔If there is a conflict when comparing Association documents, which document
trumps the others? - ✔✔The order of authority for association documents is:
1. Declaration
2. Bylaws
3. Articles of Incorporation
4. Rules and Regulations
5. Architectural Guidelines
,✔✔When creating a condominium, is the declarant required to disclose certain
information to resale buyers (aka, second purchaser of a unit)? - ✔✔NO! The declarant
only has to disclose to the FIRST purchaser of a new condominium unit.
✔✔What types of property can be created as a Homeowner Association? - ✔✔Any type
of property can become part of a HOA, as long as the owner has the deed/title to the
dirt under the improvements and the airspace above them ("Heaven to Hell"); it can
NOT be a property that has stacked units on top of each other
✔✔Does an HOA need to become incorporated in order to be a corporation? - ✔✔Yes.
They must be recorded in the land records of their county in order to become
established (the Articles of Incorporation and the Bylaws)
✔✔What are the two reasons that HOA's should switch to POA's? - ✔✔1. Enforceable
Amendments (In HOA's, covenants are only enforceable against those who agree to
them. In a POA, they are enforceable against all owners)
2. Perpetual Duration (Covenants last forever, unlike HOA's)
✔✔How long do HOA covenants last? - ✔✔20 years. Then must renew
✔✔When was the GPOAA (Georgia Property Owner's Association Act) enacted into
Georgia Law? - ✔✔1994
✔✔Does the POA have to file liens at the county courthouse for unpaid assessments? -
✔✔No! They can create an automatic statutory lien against a delinquent owner's lot
✔✔If a GCA is owned by the owners, does this mean a Cooperative is owned by the
owners? - ✔✔No. A cooperative/coop is owned explicitly by a corporation. Any type of
property can be a Coop. The members of the coop do not own any real property.
Instead, members purchase shares of stock or membership shares in the association
(corporation) and then the Corp gives them a lease to live there. The members pay fees
for upkeep and comply with explicit rules and regs set by the coop.
✔✔What fraction of owners in a GCA must vote to amend a covenant? - ✔✔2/3 or any
greater majority; and is therefore enforceable against all owners
✔✔What fraction of owners in a POAA must vote to amend a covenant? - ✔✔2/3 or any
greater majority; and is therefore enforceable against all owners
✔✔If an HOA passes an amendment with 65% of owners consenting, what percentage
of owners are held accountable/required to follow this new amendment? - ✔✔65%; this
is because those that did not agree or consent to it in an HOA are NOT required to
follow the new amendment.
, ✔✔Like a POAA, are GCA covenants perpetual? - ✔✔Yes! They last forever, unless
stated otherwise.
✔✔In order to terminate a Condominium (GCA), owners are required to sign a
termination agreement to voluntarily terminate and owners/mortgagees must vote by
what fraction? - ✔✔4/5; if they do successfully terminate a GCA, then they will own
common elements as tenants-in-common
✔✔What steps must be taken to dissolve a community association? - ✔✔1. BOD
recommends dissolution to the members
2. Majority of members (usually a high percentage in bylaws) must approve dissolution
3. BOD adopts a plan of dissolution to distribute assets and liabilities
4. Notice of Intent to Dissolve is filed with the Secretary of State and published
5. BOD liquidates assets and pays all corporate debts
6. Articles of Dissolution are filed with the Secretary of State
✔✔If a community association fails to pay the annual registration fees to the Secretary
of State, What can happen? - ✔✔The community association may be administratively
dissolved. However, upon completion of a reinstatement form and dues and fees paid,
the Corporation will be reinstated back to the date of its dissolvement, as if dissolution
never happened.
✔✔Reinstatement is not available for corps that have been administratively dissolved
for more than *BLANK* years. - ✔✔5
✔✔Can a GCA be any type of architectural style? - ✔✔Yes.
✔✔True or False: The GCA states that if declaration allows it, then for the first 24
months, declarant can be exempt from assessments if the declarant pays the difference
between fees assessed against other owners and actual common expenses - ✔✔True
✔✔In a POAA, is there an exemption for paying assessments? - ✔✔Yes. All owners are
required to pay assessments to the association unless they request an exemption in
writing and surrender the voting rights for the lot for the term of the exemption
✔✔Typically, who elects the first board of directors? - ✔✔The developer
✔✔Turnover - ✔✔A term used in the community association industry to define when the
board of directions of a community changes from a developer-appointed group to an
owner-elected group
