1|Page
M-100 Essentials of Community Association
Management 2026/2027 Study Questions with
Verified Answers and Detailed Rationales
1. Each of the following are key characteristics of community
associations EXCEPT:
A) Mandatory lien-based economic charges or assessments are levied on each
owner in order to operate and maintain the community association.
B) Membership in the community association is mandatory and automatic for
all owners.
C) A requirement of community association ownership is serving on the board
of directors.
D) Certain documents bind all owners to be governed by the community
association.
Correct Answer: C) A requirement of community association ownership
is serving on the board of directors.
Rationale:
1. This is one of the three key characteristics common to all community
associations.
,2|Page
2. Members of an association are not legally required to serve on the board of
directors.
3. However, the overall success of the community is dependent upon the
members' involvement in its affairs.
2. True or False. The primary purpose of a community association is to
provide for the governance, business, and communal aspects of the
association.
Correct Answer: True
Rationale:
1. Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
residential real estate development.
2. This is also achieved through the establishment of a system of property rights,
binding covenants and restrictions, and rules and regulations.
3. Each of the following are basic types of residential community
associations EXCEPT:
A) Planned community
B) Townhouse
,3|Page
C) Cooperative
D) Condominium
Correct Answer: B) Townhouse
Rationale:
1. While many community associations are indeed townhouse communities, not
all such developments are necessarily associations.
2. A community association is defined in terms of ownership rights—not
architectural style.
4. Adoption of the annual budget is an example of which of the following
type of resolution?
A) Policy resolution
B) Administrative resolution
C) Special resolution
D) General resolution
Correct Answer: D) General resolution
Rationale:
1. General resolutions involve routine events such as adoption of the annual
budget.
, 4|Page
5. True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community.
Correct Answer: True
Rationale:
1. The governing documents define the rights and obligations of both the
community association and its owners.
2. They create a binding relationship between each owner and the community
association.
3. They establish the mechanisms for governing and funding the community
association's operations.
6. True or false. According to the general hierarchy of authority for
governing documents, the bylaws would control in a conflict with the
recorded map, plat, or plan.
Correct Answer: False
Rationale:
1. As a general rule, documents lower in the hierarchy of authority cannot
conflict with or change the terms of those above them.
M-100 Essentials of Community Association
Management 2026/2027 Study Questions with
Verified Answers and Detailed Rationales
1. Each of the following are key characteristics of community
associations EXCEPT:
A) Mandatory lien-based economic charges or assessments are levied on each
owner in order to operate and maintain the community association.
B) Membership in the community association is mandatory and automatic for
all owners.
C) A requirement of community association ownership is serving on the board
of directors.
D) Certain documents bind all owners to be governed by the community
association.
Correct Answer: C) A requirement of community association ownership
is serving on the board of directors.
Rationale:
1. This is one of the three key characteristics common to all community
associations.
,2|Page
2. Members of an association are not legally required to serve on the board of
directors.
3. However, the overall success of the community is dependent upon the
members' involvement in its affairs.
2. True or False. The primary purpose of a community association is to
provide for the governance, business, and communal aspects of the
association.
Correct Answer: True
Rationale:
1. Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
residential real estate development.
2. This is also achieved through the establishment of a system of property rights,
binding covenants and restrictions, and rules and regulations.
3. Each of the following are basic types of residential community
associations EXCEPT:
A) Planned community
B) Townhouse
,3|Page
C) Cooperative
D) Condominium
Correct Answer: B) Townhouse
Rationale:
1. While many community associations are indeed townhouse communities, not
all such developments are necessarily associations.
2. A community association is defined in terms of ownership rights—not
architectural style.
4. Adoption of the annual budget is an example of which of the following
type of resolution?
A) Policy resolution
B) Administrative resolution
C) Special resolution
D) General resolution
Correct Answer: D) General resolution
Rationale:
1. General resolutions involve routine events such as adoption of the annual
budget.
, 4|Page
5. True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community.
Correct Answer: True
Rationale:
1. The governing documents define the rights and obligations of both the
community association and its owners.
2. They create a binding relationship between each owner and the community
association.
3. They establish the mechanisms for governing and funding the community
association's operations.
6. True or false. According to the general hierarchy of authority for
governing documents, the bylaws would control in a conflict with the
recorded map, plat, or plan.
Correct Answer: False
Rationale:
1. As a general rule, documents lower in the hierarchy of authority cannot
conflict with or change the terms of those above them.
