CAM M100 EXAM Latest Update 2026-2027 Exam
100 Questions with 100% Verified Correct Answers
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3 Basic Types of Community Associations - CORRECT ANSWER: 1. Planned Community - An
owner owns his lot/unit and the community owns common areas.
2. Condominium - Individual owns his living unit and owns an undivided interest in the common
elements.
3. Cooperative or Stock Cooperative - Individual owns stock or membership in the cooperative
and owns a proprietary lease or occupancy agreement for his living unit.
>A proprietary lease or occupancy agreement defines the member or stockholder's rights and
obligations in relation to the living unit. For most cooperatives, the community association owns
all of the real estate as a not-for profit corporation.
3 Defining Characteristics of a Community Association - CORRECT ANSWER: 1. Membership
in the community is MANDATORY and automatic for all owners.
2. Certain association governing documents bind the owners and the association to each other
through mandated actions.
3. Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to
operate and maintain the community association.
3 Types of Account Methods - CORRECT ANSWER: 1. Cash Basis: records revenue when it is
collected and expenses when they are paid.
2. Accrual Basis: records revenue when it is earned (or assessed to owners) and expenses when
they are incurred.
3. Modified Cash Basis: records revenue on the accrual basis and expenses on a cash basis with
selected items recorded on an accrual basis.
3 Types of Bankruptcy - CORRECT ANSWER: 1. Chapter 7: called straight bankruptcy or
liquidation. it involves the prompt conversion of all the individual or corporation non-exempt
property to cash, payment of creditors to the extent possible.
,2. Chapter 11: called "re-organization" because it is designed to allow for an orderly payment to
creditors while enabling a corporation to continue to operate.
3. Chapter 13: is used to reorganize personal or non-corporate debt. A creditor has more of a
chance of eventually being repaid under chapter 13 than chapter 7.
>Bad Debit Write-Off: consist of recording an uncollected debt as an expense that the CA must
absorb.
3 Types of Residential Community Associations that can exist by themselves or can be grouped
in CLUSTERS called: - CORRECT ANSWER: 1. Master or Umbrella Associations - consists of
more than one residential community associations.
2. Mixed-Use Development - consists of a mixture of residential and commercial and/or
industrial uses grouped together. Their marketing slogan is often "live, work, play."
3. "55 and Older" Communities - must have one person who is 55 years of age or older living in
at least 80% of its occupied units.
3 Types of State Statutes - CORRECT ANSWER: 1. General State Statutes - applies to
community associations, as well as to other types of organizations (Regular, corporate or not-for-
profit).
2. Specific State Statutes - applies only to one or more types of community associations. The
specific state statutes take precedence.
3. Uniform State Statutes - the national conference of commissioners on uniform state laws has
attempted to standardize specific state statutes like: Uniform Condominium Act, Uniform
Planned Communities Act, Model Real Estate Cooperative Act, Uniform Common Interest Act.
4 Major Maintenance Goals - CORRECT ANSWER: 1. Meet the needs of the residents.
2. Preserve and enhance the common property.
3. Limit potential exposure.
4. Protect values
4 Sections of Resolution Format (PASS) - CORRECT ANSWER: 1. Purpose - why is the rule
being adopted ie "Whereas, there is a need to adopt..."
, 2. Authority - sites the primary sources of a board's authority to make the rule.
3. Scope & Intent - this section states: who will be affected, for what period of time, the reach or
range and extent of the rule, penalties for non-compliance.
4. Specifications - states clearly and completely what those bound by the rule will be expected to
do.
4 Types of Resolutions - CORRECT ANSWER: 1. Policy Resolutions: affects owner's rights &
obligations and usually address ambiguities and omissions in the declaration.
2. Administrative Resolution: addresses the internal operations of the community association and
usually addresses ambiguities and omissions in the by-laws.
3. Special Resolutions: these are resolutions that state board decisions that apply a policy or rule
to an individual situation.
4. General Resolution: a resolution which involves routine events.
>Resolutions should be kept in a BOOK OF RESOLUTIONS.
4 Types of Sudden, Accidental and Unexpected Loss to which a Community Association is
Exposed - CORRECT ANSWER: 1. Property Exposure to Loss - tangible property or intangible
property of community association.
2. Liability Exposure to Loss - damage to non-Community Association property or a person.
3. Income Exposure to Loss - income losses involve a reduction in income or an increase in
operating expenses or both.
4. Personnel Exposure to Loss - involve claims of employees regarding discrimination in hiring
or firing, harassment, or other allegations.
5 Types of Maintenance - CORRECT ANSWER: 1. Routine Maintenance
2. Preventative
3. Emergency
4. Requested
5. Reserve Replacement
100 Questions with 100% Verified Correct Answers
Guaranteed A+
3 Basic Types of Community Associations - CORRECT ANSWER: 1. Planned Community - An
owner owns his lot/unit and the community owns common areas.
2. Condominium - Individual owns his living unit and owns an undivided interest in the common
elements.
3. Cooperative or Stock Cooperative - Individual owns stock or membership in the cooperative
and owns a proprietary lease or occupancy agreement for his living unit.
>A proprietary lease or occupancy agreement defines the member or stockholder's rights and
obligations in relation to the living unit. For most cooperatives, the community association owns
all of the real estate as a not-for profit corporation.
3 Defining Characteristics of a Community Association - CORRECT ANSWER: 1. Membership
in the community is MANDATORY and automatic for all owners.
2. Certain association governing documents bind the owners and the association to each other
through mandated actions.
3. Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to
operate and maintain the community association.
3 Types of Account Methods - CORRECT ANSWER: 1. Cash Basis: records revenue when it is
collected and expenses when they are paid.
2. Accrual Basis: records revenue when it is earned (or assessed to owners) and expenses when
they are incurred.
3. Modified Cash Basis: records revenue on the accrual basis and expenses on a cash basis with
selected items recorded on an accrual basis.
3 Types of Bankruptcy - CORRECT ANSWER: 1. Chapter 7: called straight bankruptcy or
liquidation. it involves the prompt conversion of all the individual or corporation non-exempt
property to cash, payment of creditors to the extent possible.
,2. Chapter 11: called "re-organization" because it is designed to allow for an orderly payment to
creditors while enabling a corporation to continue to operate.
3. Chapter 13: is used to reorganize personal or non-corporate debt. A creditor has more of a
chance of eventually being repaid under chapter 13 than chapter 7.
>Bad Debit Write-Off: consist of recording an uncollected debt as an expense that the CA must
absorb.
3 Types of Residential Community Associations that can exist by themselves or can be grouped
in CLUSTERS called: - CORRECT ANSWER: 1. Master or Umbrella Associations - consists of
more than one residential community associations.
2. Mixed-Use Development - consists of a mixture of residential and commercial and/or
industrial uses grouped together. Their marketing slogan is often "live, work, play."
3. "55 and Older" Communities - must have one person who is 55 years of age or older living in
at least 80% of its occupied units.
3 Types of State Statutes - CORRECT ANSWER: 1. General State Statutes - applies to
community associations, as well as to other types of organizations (Regular, corporate or not-for-
profit).
2. Specific State Statutes - applies only to one or more types of community associations. The
specific state statutes take precedence.
3. Uniform State Statutes - the national conference of commissioners on uniform state laws has
attempted to standardize specific state statutes like: Uniform Condominium Act, Uniform
Planned Communities Act, Model Real Estate Cooperative Act, Uniform Common Interest Act.
4 Major Maintenance Goals - CORRECT ANSWER: 1. Meet the needs of the residents.
2. Preserve and enhance the common property.
3. Limit potential exposure.
4. Protect values
4 Sections of Resolution Format (PASS) - CORRECT ANSWER: 1. Purpose - why is the rule
being adopted ie "Whereas, there is a need to adopt..."
, 2. Authority - sites the primary sources of a board's authority to make the rule.
3. Scope & Intent - this section states: who will be affected, for what period of time, the reach or
range and extent of the rule, penalties for non-compliance.
4. Specifications - states clearly and completely what those bound by the rule will be expected to
do.
4 Types of Resolutions - CORRECT ANSWER: 1. Policy Resolutions: affects owner's rights &
obligations and usually address ambiguities and omissions in the declaration.
2. Administrative Resolution: addresses the internal operations of the community association and
usually addresses ambiguities and omissions in the by-laws.
3. Special Resolutions: these are resolutions that state board decisions that apply a policy or rule
to an individual situation.
4. General Resolution: a resolution which involves routine events.
>Resolutions should be kept in a BOOK OF RESOLUTIONS.
4 Types of Sudden, Accidental and Unexpected Loss to which a Community Association is
Exposed - CORRECT ANSWER: 1. Property Exposure to Loss - tangible property or intangible
property of community association.
2. Liability Exposure to Loss - damage to non-Community Association property or a person.
3. Income Exposure to Loss - income losses involve a reduction in income or an increase in
operating expenses or both.
4. Personnel Exposure to Loss - involve claims of employees regarding discrimination in hiring
or firing, harassment, or other allegations.
5 Types of Maintenance - CORRECT ANSWER: 1. Routine Maintenance
2. Preventative
3. Emergency
4. Requested
5. Reserve Replacement
