BANK| M100 CMCA EXAM REVIEW WITH COMPLETE
350 REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
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
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
Rationale: This is correct because serving on the board of
directors is NOT a requirement of ownership. The three key
characteristics common to all community associations are: (1)
mandatory membership and automatic for all owners, (2)
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,mandatory lien-based assessments levied on each owner, and (3)
binding governing documents that all owners must follow. While
boards need volunteers, owners cannot be forced to serve; that
would be involuntary servitude. Thus, option C is the exception.
2. What are the three most common types of community
associations?
A) Condominiums, Townhomes, and Single-Family Homes
B) Condominiums, Homeowners Associations (HOAs), and
Cooperatives (Co-ops)
C) Planned Unit Developments, Mobile Home Parks, and
Timeshares
D) Master Associations, Sub-Associations, and Property Owners
Associations
Correct Answer: B
Rationale: This is correct because the three most common types
of community associations are condominiums, homeowners
associations (HOAs also called planned communities), and
cooperatives (co-ops). Each type has a distinct legal structure
and ownership model. Townhomes (A) refer to architectural style,
not ownership type. Planned Unit Developments (C) are a subset
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,of HOAs. Master associations (D) are umbrella organizations, not
a basic type. Thus, the three basic types are defined by
ownership rights, not architecture.
3. True or False: The primary purpose of a community
association is to provide for the governance, business, and
communal aspects of the association.
A) True
B) False
Correct Answer: A (True)
Rationale: This is correct because the primary purpose of a
community association is indeed to provide for the governance,
business, and communal 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. The three purposes
are: Business (operating as a not-for-profit entity), Government
(functioning like a mini-government with rules and enforcement),
and Community (the mutual reasons owners bought into the area).
Thus, the statement is true.
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, 4. In a planned community (HOA), the owner owns:
A) Only the interior walls of their unit
B) Their individual lot or living unit, and the association owns the
common areas
C) Shares in a corporation that owns the entire property
D) Nothing; all property is rental
Correct Answer: B
Rationale: This is correct because in a planned community (also
called HOA or owner association), the individual owner owns
their lot or living unit in fee simple. The community association
owns the common areas such as tennis courts, basketball courts,
pools, clubhouses, and other shared amenities. In a condominium
(A), owners own individual units plus an undivided interest in
common elements. In a cooperative (C), owners own shares in a
corporation. Thus, planned community ownership = lot/home
owner, association owns common areas.
5. In a condominium, the owner owns:
A) Only the interior walls of their unit
B) Their individual unit plus an undivided interest (percentage) in
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