M100 COMMUNITY ASSOCIATION
MANAGEMENT FINAL STUDY PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
●● community association has 3 defining characteristics. Answer:
Membership in the community is mandatory & automatic for all owners;
certain association docs bind the owner & the association to each other
through mandated actions; mandatory lien-based assessments
(maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
●● lien. Answer: legal claim by one party (community association) on
the property of another (delinquent owner) to obtain the payment of a
debt or the satisfaction of an obligation.
●● What does the lien do?. Answer: Placing a lien on an owner's
property protects the community association's interests. It encourages
payment of the debt. Consequence of lien is the owner cant sell or
transfer the unit without settling the debt.
●● Purpose of a community assocation. Answer: to provide for the
community, business, & governance aspects of the association. This is
achieved by administering, maintaining, & enhancing a residential real
estate development, and through the establishment of a system of
property rights, binding covenants & restrictions, & rules & regulations.
,●● 3 basic types of residential community associations (1). Answer:
Planned community; owner owns his unit ; community owns any
common areas such as tennis courts, for the use & benefit of the lot
owners
●● second type. Answer: Condominium; owner owns his living unit &
an undivided interest in the common elements of the community. Each
owner owns a % of the common elements, which consist of everything
except the living units.
●● third type. Answer: Cooperative; person owns stock or membership;
holds a proprietary lease or occupancy agreement for his living unit
●● Proprietary lease or occupancy agreement. Answer: defines the
member or stockholders' rights & obligations in relation to the living
unit. The community association owns all of the real estate as a not-for-
profit corporation.
●● 3 types of residential community associations can exist by
themselves or can be group in clusters called:. Answer: Master or
umbrella associations: consists of more than 1 residential community
association.
●● Second type. Answer: Mixed-use development-consists of a mixture
of residential & commercial &/or industrial uses grouped together.
, ●● Third type. Answer: 55 & older communities; must have 1 person
who is 55 of age or older living in at least 80% of occupied units.
●● Sources of legal obligations for a community association. Answer:
Federal, state & local statues, regulations, & case law
●● second source. Answer: legal documents unique to the community
association that bind the association & its owners
●● third source. Answer: lender requirements; requirements set by
secondary institutions (ex; FHA, Fannie Mae)
●● fourth source. Answer: standards set by professional bodies; ex:
auditing standards set the American Institute of CPAs
●● Types of Federal Laws applying to community associations. Answer:
Equal employment opportunity commission (EEOC); federal govt
prohibits discrimination against otherwise qualified people in hiring,
promotion, dismissal, based on specific characteristics like race &
ethnicity, age, color, gender, religion
●● second federal law. Answer: Fair Debt Collection Practices act:
protect debtors from unscrupulous debt collects & to impose a consistent
& fair method to collect debts.
MANAGEMENT FINAL STUDY PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
●● community association has 3 defining characteristics. Answer:
Membership in the community is mandatory & automatic for all owners;
certain association docs bind the owner & the association to each other
through mandated actions; mandatory lien-based assessments
(maintenance fees) are levied on each owner in order to operate &
maintain the community assocation
●● lien. Answer: legal claim by one party (community association) on
the property of another (delinquent owner) to obtain the payment of a
debt or the satisfaction of an obligation.
●● What does the lien do?. Answer: Placing a lien on an owner's
property protects the community association's interests. It encourages
payment of the debt. Consequence of lien is the owner cant sell or
transfer the unit without settling the debt.
●● Purpose of a community assocation. Answer: to provide for the
community, business, & governance aspects of the association. This is
achieved by administering, maintaining, & enhancing a residential real
estate development, and through the establishment of a system of
property rights, binding covenants & restrictions, & rules & regulations.
,●● 3 basic types of residential community associations (1). Answer:
Planned community; owner owns his unit ; community owns any
common areas such as tennis courts, for the use & benefit of the lot
owners
●● second type. Answer: Condominium; owner owns his living unit &
an undivided interest in the common elements of the community. Each
owner owns a % of the common elements, which consist of everything
except the living units.
●● third type. Answer: Cooperative; person owns stock or membership;
holds a proprietary lease or occupancy agreement for his living unit
●● Proprietary lease or occupancy agreement. Answer: defines the
member or stockholders' rights & obligations in relation to the living
unit. The community association owns all of the real estate as a not-for-
profit corporation.
●● 3 types of residential community associations can exist by
themselves or can be group in clusters called:. Answer: Master or
umbrella associations: consists of more than 1 residential community
association.
●● Second type. Answer: Mixed-use development-consists of a mixture
of residential & commercial &/or industrial uses grouped together.
, ●● Third type. Answer: 55 & older communities; must have 1 person
who is 55 of age or older living in at least 80% of occupied units.
●● Sources of legal obligations for a community association. Answer:
Federal, state & local statues, regulations, & case law
●● second source. Answer: legal documents unique to the community
association that bind the association & its owners
●● third source. Answer: lender requirements; requirements set by
secondary institutions (ex; FHA, Fannie Mae)
●● fourth source. Answer: standards set by professional bodies; ex:
auditing standards set the American Institute of CPAs
●● Types of Federal Laws applying to community associations. Answer:
Equal employment opportunity commission (EEOC); federal govt
prohibits discrimination against otherwise qualified people in hiring,
promotion, dismissal, based on specific characteristics like race &
ethnicity, age, color, gender, religion
●● second federal law. Answer: Fair Debt Collection Practices act:
protect debtors from unscrupulous debt collects & to impose a consistent
& fair method to collect debts.
