M100 Community Association Management Exam
Questions & Answers | CAM Certification Study
Guide|100% Verified and Updated |Latest
and Brand new Version!!!!
Characteristics of a Community Association
Correct Answer:
Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association
Correct Answer:
Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations
Correct Answer:
Planned Community - Owners owns his lot/living unit and community
owns common areas (tennis courts, basketball courts, etc.).
Condominium - Individual owns unit and undivided interest
(percentage) in common elements.
Cooperative - Individual owns stock or membership in cooperative
and holds a proprietary lease/occupancy agreement.
Community associations can be grouped into clusters called:
Correct Answer:
,Master or Umbrella Associations - More than one residential
community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least
one per unit.
Name the sources of legal obligations for a Community Association
Correct Answer:
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations
Correct Answer:
Equal Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations
Correct Answer:
General - Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence
over any general statutes and governing documents.
Uniform - National Conference of Commissioners draft generic
content-specific wording to encourage uniformity among the states.
Purpose of Community Association Governing Documents
,Correct Answer:
Provide legal structure and operation of a community association.
Hierarchy of Governing Documents
Correct Answer:
Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Correct Answer:
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation
Correct Answer:
Brings corporation into existence.
Coops must incorporate because the the corporation owns all the
property.
Other types of communities may incorporate.
Benefits of incorporating
Correct Answer:
Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws
Correct Answer:
, Formally adopted regulations for the administration and management
of a community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions
Correct Answer:
A motion that follows a set format and formally adopted by the board.
Public Offering Statement
Correct Answer:
Provides association information to first prospective buyers in
community.
Required by state statute.
Not considered a governing document.
Types of Resolutions
Correct Answer:
Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community
association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules
Correct Answer:
Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
Must be reasonable and fair.
Must be capable of uniform enforcement.
Must be necessary.
Resolution Format
Questions & Answers | CAM Certification Study
Guide|100% Verified and Updated |Latest
and Brand new Version!!!!
Characteristics of a Community Association
Correct Answer:
Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association
Correct Answer:
Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations
Correct Answer:
Planned Community - Owners owns his lot/living unit and community
owns common areas (tennis courts, basketball courts, etc.).
Condominium - Individual owns unit and undivided interest
(percentage) in common elements.
Cooperative - Individual owns stock or membership in cooperative
and holds a proprietary lease/occupancy agreement.
Community associations can be grouped into clusters called:
Correct Answer:
,Master or Umbrella Associations - More than one residential
community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least
one per unit.
Name the sources of legal obligations for a Community Association
Correct Answer:
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations
Correct Answer:
Equal Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations
Correct Answer:
General - Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence
over any general statutes and governing documents.
Uniform - National Conference of Commissioners draft generic
content-specific wording to encourage uniformity among the states.
Purpose of Community Association Governing Documents
,Correct Answer:
Provide legal structure and operation of a community association.
Hierarchy of Governing Documents
Correct Answer:
Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Correct Answer:
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation
Correct Answer:
Brings corporation into existence.
Coops must incorporate because the the corporation owns all the
property.
Other types of communities may incorporate.
Benefits of incorporating
Correct Answer:
Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws
Correct Answer:
, Formally adopted regulations for the administration and management
of a community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions
Correct Answer:
A motion that follows a set format and formally adopted by the board.
Public Offering Statement
Correct Answer:
Provides association information to first prospective buyers in
community.
Required by state statute.
Not considered a governing document.
Types of Resolutions
Correct Answer:
Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community
association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules
Correct Answer:
Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
Must be reasonable and fair.
Must be capable of uniform enforcement.
Must be necessary.
Resolution Format
