M100 FOCUS LEGAL BASIS EXAM QUESTIONS
AND ANSWERS 2025 GRADED
The Declaration, Master Deed or CC&R generally: - CORRECT ANSWER -- Defines the portions of the
development owned by the individual owners and those owned by the community association (if any)
- Creates interlocking relationships binding all the owners to one another and to the community
association for the purposes of maintaining governing and funding the development
- Establishes standards, restrictions and obligations in areas ranging from architectural control to
prohibitions on various activities in order to promote harmonious living.
- Creates the administrative framework for the operation and management of the community
association ( although many of the specific administrative details are spelled out in the bylaws) -
Provides the mechanism for financial support of the community association through assessments
- Provides for a transition of control of the community association from the developer to the
owners.
Define a community association and its 3 characteristics - CORRECT ANSWER -A community association
is a legal entity in which the owners enjoy the protection, enhancement, maintenance and preservation
of their homes and property.
- Membership is mandatory
- Governing documents bind the owner and the association to each other through mandated actions
- Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate
and maintain the community association
List the basic governing documents for a community association - CORRECT ANSWER -L- (ling) laws, fed,
state, local
M- (mark) maps, records, plot plans
, D - (Dad) Declaration of CC&R,
P - (Pete)proprietary lease (L) or occupancy agreement
A - (And) Articles of Incorporation
B- (Bonnie) Bylaws
R - (Rule) Rules, Regulations, Board resolution
Define the 3 basic types of residential community associations in terms of ownership rights. - CORRECT
ANSWER -- Planned Community
- Condominium
- Cooperative
What sources create legal obligations for community associations? - CORRECT ANSWER -- Federal, state,
and local statutes, regulations and case law (court decisions)
- Legal documents unique to the community association that bind the association and its owners
- Lender requirements - for example (FHA, FANNIE MAE, FREDDIE MAC, etc)
- Standards set by professional bodies - for example auditing standards set by the American Institute of
CPA.
Describe some of the Federal laws that affect community associations. - CORRECT ANSWER -- Equal
Employment Opportunity Commission (EEOC)
- Fair Debt Collection Practice Act (FDCPA)
- Fair Housing Act
- Fair Labor and Standards Act (FSLA)
- Family and Medical Leave Act (FMLA)
- Federal Communications Commission (FCC)
- Federal Insurance Contribution Act (FICA)
- Occupational Safety and Health Act (OSHA)
AND ANSWERS 2025 GRADED
The Declaration, Master Deed or CC&R generally: - CORRECT ANSWER -- Defines the portions of the
development owned by the individual owners and those owned by the community association (if any)
- Creates interlocking relationships binding all the owners to one another and to the community
association for the purposes of maintaining governing and funding the development
- Establishes standards, restrictions and obligations in areas ranging from architectural control to
prohibitions on various activities in order to promote harmonious living.
- Creates the administrative framework for the operation and management of the community
association ( although many of the specific administrative details are spelled out in the bylaws) -
Provides the mechanism for financial support of the community association through assessments
- Provides for a transition of control of the community association from the developer to the
owners.
Define a community association and its 3 characteristics - CORRECT ANSWER -A community association
is a legal entity in which the owners enjoy the protection, enhancement, maintenance and preservation
of their homes and property.
- Membership is mandatory
- Governing documents bind the owner and the association to each other through mandated actions
- Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate
and maintain the community association
List the basic governing documents for a community association - CORRECT ANSWER -L- (ling) laws, fed,
state, local
M- (mark) maps, records, plot plans
, D - (Dad) Declaration of CC&R,
P - (Pete)proprietary lease (L) or occupancy agreement
A - (And) Articles of Incorporation
B- (Bonnie) Bylaws
R - (Rule) Rules, Regulations, Board resolution
Define the 3 basic types of residential community associations in terms of ownership rights. - CORRECT
ANSWER -- Planned Community
- Condominium
- Cooperative
What sources create legal obligations for community associations? - CORRECT ANSWER -- Federal, state,
and local statutes, regulations and case law (court decisions)
- Legal documents unique to the community association that bind the association and its owners
- Lender requirements - for example (FHA, FANNIE MAE, FREDDIE MAC, etc)
- Standards set by professional bodies - for example auditing standards set by the American Institute of
CPA.
Describe some of the Federal laws that affect community associations. - CORRECT ANSWER -- Equal
Employment Opportunity Commission (EEOC)
- Fair Debt Collection Practice Act (FDCPA)
- Fair Housing Act
- Fair Labor and Standards Act (FSLA)
- Family and Medical Leave Act (FMLA)
- Federal Communications Commission (FCC)
- Federal Insurance Contribution Act (FICA)
- Occupational Safety and Health Act (OSHA)
