M100 EXAMS SET 2026 COMPLETE
QUESTIONS AND ANSWERS BUNDLED
PREMIUM RESOURCE
●● 3 Defining Characteristics of a Community Association.
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.
●● Lien.
Answer: a 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.
>Placing a lien on an owner's property protects the community
association's interest. It encourages payment of the debt.
●● Purpose of a Community Association.
Answer: to provide for the COMMUNITY, BUSINESS, and
GOVERNANCE aspects of the association.
>This is achieved by administering, maintaining and enhancing a
residential real estate development, and through the establishment of a
,system of property rights, binding covenants and restrictions, and rules
and regulations.
●● 3 Basic Types of Community Associations.
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 Types of Residential Community Associations that can exist by
themselves or can be grouped in CLUSTERS called:.
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.
,●● Sources of Legal Obligations of a Community Association.
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, requirements set by secondary
mortgage institutions (FHA, Fannie Mac, Freddie Mae, etc.)
-Standards set by professional bodies - for example, auditing standards
set by the American Institute of Certified Public Accountants.
●● Additional Legal Obligations of Community Associations.
Answer: -Equal Employment Opportunity Commission (EEOC) -
protects against discrimination.
-Fair Debt Collection Practices Act (FDCPA) - protects debtors from
unscrupulous debt collectors and to impose a consistent and fair method
to collect debts.
-Fair Labor and Standards Act (FSLA) - dictates standards for the basic
minimum wage and overtime pay.
-Family and Medical Leave Act (FMLA) - requires employers of 50 or
more employees to provide up to 12 weeks of unpaid, job-protected
leave to eligible employees for the birth or adoption of a child or serious
illness.
-Federal Insurance Contributions Act (FICA) - requires employers and
employees to make matching contributions to social security.
-Occupational Safety and Health Act (OSHA) - prevents injuries.
, -Soldiers' and Sailors' Civil Relief Act of 1940 - delays civil court
actions.
●● Additional legal Obligations of Community Associations cont..
Answer: -US Bankruptcy Code - helps honest people and business find a
way to pay their debt or get a fresh start.
-Federal Communications Commission (FCC) - overrides a community
association deed restriction that bans satellite dishes and antennae from
property that is exclusively used, controlled or owned by the resident.
-Fair Housing Act - prohibits discrimination in the sale, rental, financing
insuring and other housing related services.
●● 3 Types of State Statutes.
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.
●● Governing Documents.
QUESTIONS AND ANSWERS BUNDLED
PREMIUM RESOURCE
●● 3 Defining Characteristics of a Community Association.
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.
●● Lien.
Answer: a 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.
>Placing a lien on an owner's property protects the community
association's interest. It encourages payment of the debt.
●● Purpose of a Community Association.
Answer: to provide for the COMMUNITY, BUSINESS, and
GOVERNANCE aspects of the association.
>This is achieved by administering, maintaining and enhancing a
residential real estate development, and through the establishment of a
,system of property rights, binding covenants and restrictions, and rules
and regulations.
●● 3 Basic Types of Community Associations.
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 Types of Residential Community Associations that can exist by
themselves or can be grouped in CLUSTERS called:.
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.
,●● Sources of Legal Obligations of a Community Association.
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, requirements set by secondary
mortgage institutions (FHA, Fannie Mac, Freddie Mae, etc.)
-Standards set by professional bodies - for example, auditing standards
set by the American Institute of Certified Public Accountants.
●● Additional Legal Obligations of Community Associations.
Answer: -Equal Employment Opportunity Commission (EEOC) -
protects against discrimination.
-Fair Debt Collection Practices Act (FDCPA) - protects debtors from
unscrupulous debt collectors and to impose a consistent and fair method
to collect debts.
-Fair Labor and Standards Act (FSLA) - dictates standards for the basic
minimum wage and overtime pay.
-Family and Medical Leave Act (FMLA) - requires employers of 50 or
more employees to provide up to 12 weeks of unpaid, job-protected
leave to eligible employees for the birth or adoption of a child or serious
illness.
-Federal Insurance Contributions Act (FICA) - requires employers and
employees to make matching contributions to social security.
-Occupational Safety and Health Act (OSHA) - prevents injuries.
, -Soldiers' and Sailors' Civil Relief Act of 1940 - delays civil court
actions.
●● Additional legal Obligations of Community Associations cont..
Answer: -US Bankruptcy Code - helps honest people and business find a
way to pay their debt or get a fresh start.
-Federal Communications Commission (FCC) - overrides a community
association deed restriction that bans satellite dishes and antennae from
property that is exclusively used, controlled or owned by the resident.
-Fair Housing Act - prohibits discrimination in the sale, rental, financing
insuring and other housing related services.
●● 3 Types of State Statutes.
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.
●● Governing Documents.
