Cam exam questions
A. must at a minimum include statutory reserves - Answer-The documents of ABC Condominium
Association do not require reserves. The proposed budget:
A. must at a minimum include statutory reserves
B. if only required to include reserves if the majority of members vote in favor of reserves
C. CANNOT create reserves
D. may be approved without reserves
D. professional fees - Answer-All of the following categories of expenditures are required to be included
in a condominium budget EXCEPT:
A. insurance
B. reserves
C. estimated common expenses
D. professional fees
C. 5 - Answer-Verdana Oaks community is comprised of 2 low rises, each with an association; 2 towers
with 1 association; and 10 villas with 1 association. How many total associations are located in Verdana
Oaks?
A. 7
B. 6
C. 5
D. 4
,C. 14 days - Answer-The board of directors of Netherworld Cooperative has scheduled a meeting to
approve next year's budget. The members must receive notice how far in advance of the meeting?
A. 60 days
B. 30 days
C. 14 days
D. 48 hours
B. No, because the expenditure is less than 5% of $200,000 - Answer-Universal Condominium
Association has an annual budget of $175,000 plus $25,000 for reserves. The board is considering an
expenditure of $7,800 for roof repairs based on a bid from Do-Rite Roofing. Is the board required to
obtain other bids before awarding the contract?
A. Yes, because the expenditure is a major repair
B. No, because the expenditure is less than 5% of $200,000
C. Yes, because 2 or more bids are required for ALL repair expenditures
D. No, because more than 1 bid is NEVER required according to Chapter 718 F.S.
B. Nels may use the facilities as a guest - Answer-Nels is a condominium owner who has leased his unit
from January 1 - March 31. Under what condition does Nels have the right to use the fitness center
while the property is rented?
A. None; it is NOT allowed under any circumstances
B. Nels may use the facilities as a guest
C. Nels may use the facilities if he prohibits the tenant from using the fitness center
D. Nels MUST purchase an additional share of stock in order to use the fitness center
,A. It was acceptable because an HOA board is not required to allow a member to speak under this
circumstance - Answer-At the regular board meeting of a homeowners' association, Owner Zumwalt
asked to speak about an agenda item. The president of the board refused to recognize the owner.
Which of the following is TRUE of the president's actions?
A. It was acceptable because an HOA board is not required to allow a member to speak under this
circumstance
B. It was a violation of the president's fiduciary duty and may be fined by the DBPR
C. The entire board is culpable for the president's action
D. It was acceptable ONLY IF there is a sign posted explaining the board's policy on members speaking at
its meetings
D. elected by the board of directors - Answer-Officers of a community association are usually:
A. elected at the annual meeting
B. elected by the election committee
C. appointed by the chairman of the board
D. elected by the board of directors
C. 32 units or less - Answer-Condominiums not operating as public lodgings are exempt from the
statutory pool supervision requirements if the pool serves:
A. less than 90 people
B. less than 50 units
C. 32 units or less
D. more than 32 units
, A. by action through the Florida circuit court - Answer-Owner J has violated the condominium bylaws.
The association has the power to seek enforcement:
A. by action through the Florida circuit court
B. by ordering the Division to foreclose on J's unit
C. by revoking J's voting rights
D. by locking J out of his unit
A. In order to create reserve accounts, a majority of the entire membership must approve specific
reserve components and they must be included in next year's budget - Answer-The developer-controlled
HOA board did NOT establish reserve accounts. After transition, the newly elected board has recognized
the need for reserve funds for long-term maintenance and replacement of roadways, parking areas, and
swimming pools. Which of the following is CORRECT?
A. In order to create reserve accounts, a majority of the entire membership must approve specific
reserve components and they must be included in next year's budget
B. The board may initiate the reserve accounts by majority vote
C. The officers have the power to increase assessments without specifying individual components
D. Since the developer did NOT have reserves, there can NEVER be reserves
C. The motion is out of order and may be dismissed - Answer-A board member disagrees with a vote of
the board to change a rule. After the final vote, the member makes a motion to modify the rule. Which
of the following is TRUE?
A. The motion, if seconded, must be put to a vote
B. The board is required to consider the motion
C. The motion is out of order and may be dismissed
D. The modification MUST be adopted
A. must at a minimum include statutory reserves - Answer-The documents of ABC Condominium
Association do not require reserves. The proposed budget:
A. must at a minimum include statutory reserves
B. if only required to include reserves if the majority of members vote in favor of reserves
C. CANNOT create reserves
D. may be approved without reserves
D. professional fees - Answer-All of the following categories of expenditures are required to be included
in a condominium budget EXCEPT:
A. insurance
B. reserves
C. estimated common expenses
D. professional fees
C. 5 - Answer-Verdana Oaks community is comprised of 2 low rises, each with an association; 2 towers
with 1 association; and 10 villas with 1 association. How many total associations are located in Verdana
Oaks?
A. 7
B. 6
C. 5
D. 4
,C. 14 days - Answer-The board of directors of Netherworld Cooperative has scheduled a meeting to
approve next year's budget. The members must receive notice how far in advance of the meeting?
A. 60 days
B. 30 days
C. 14 days
D. 48 hours
B. No, because the expenditure is less than 5% of $200,000 - Answer-Universal Condominium
Association has an annual budget of $175,000 plus $25,000 for reserves. The board is considering an
expenditure of $7,800 for roof repairs based on a bid from Do-Rite Roofing. Is the board required to
obtain other bids before awarding the contract?
A. Yes, because the expenditure is a major repair
B. No, because the expenditure is less than 5% of $200,000
C. Yes, because 2 or more bids are required for ALL repair expenditures
D. No, because more than 1 bid is NEVER required according to Chapter 718 F.S.
B. Nels may use the facilities as a guest - Answer-Nels is a condominium owner who has leased his unit
from January 1 - March 31. Under what condition does Nels have the right to use the fitness center
while the property is rented?
A. None; it is NOT allowed under any circumstances
B. Nels may use the facilities as a guest
C. Nels may use the facilities if he prohibits the tenant from using the fitness center
D. Nels MUST purchase an additional share of stock in order to use the fitness center
,A. It was acceptable because an HOA board is not required to allow a member to speak under this
circumstance - Answer-At the regular board meeting of a homeowners' association, Owner Zumwalt
asked to speak about an agenda item. The president of the board refused to recognize the owner.
Which of the following is TRUE of the president's actions?
A. It was acceptable because an HOA board is not required to allow a member to speak under this
circumstance
B. It was a violation of the president's fiduciary duty and may be fined by the DBPR
C. The entire board is culpable for the president's action
D. It was acceptable ONLY IF there is a sign posted explaining the board's policy on members speaking at
its meetings
D. elected by the board of directors - Answer-Officers of a community association are usually:
A. elected at the annual meeting
B. elected by the election committee
C. appointed by the chairman of the board
D. elected by the board of directors
C. 32 units or less - Answer-Condominiums not operating as public lodgings are exempt from the
statutory pool supervision requirements if the pool serves:
A. less than 90 people
B. less than 50 units
C. 32 units or less
D. more than 32 units
, A. by action through the Florida circuit court - Answer-Owner J has violated the condominium bylaws.
The association has the power to seek enforcement:
A. by action through the Florida circuit court
B. by ordering the Division to foreclose on J's unit
C. by revoking J's voting rights
D. by locking J out of his unit
A. In order to create reserve accounts, a majority of the entire membership must approve specific
reserve components and they must be included in next year's budget - Answer-The developer-controlled
HOA board did NOT establish reserve accounts. After transition, the newly elected board has recognized
the need for reserve funds for long-term maintenance and replacement of roadways, parking areas, and
swimming pools. Which of the following is CORRECT?
A. In order to create reserve accounts, a majority of the entire membership must approve specific
reserve components and they must be included in next year's budget
B. The board may initiate the reserve accounts by majority vote
C. The officers have the power to increase assessments without specifying individual components
D. Since the developer did NOT have reserves, there can NEVER be reserves
C. The motion is out of order and may be dismissed - Answer-A board member disagrees with a vote of
the board to change a rule. After the final vote, the member makes a motion to modify the rule. Which
of the following is TRUE?
A. The motion, if seconded, must be put to a vote
B. The board is required to consider the motion
C. The motion is out of order and may be dismissed
D. The modification MUST be adopted
