M100 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ Characteristics of a Community Association.
Answer: Mandatory membershipMutually binding documentsLien-based
assessments
◍ 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..
Answer: c. A requirement of community association ownership is serving on
the board of directors.This is one of the three key characteristics common to
all community associations. Members of an association are not legally
required to serve on the board of directors; however, the overall success on
the community is dependent upon the members' involvement its affairs.
◍ Purposes of a Community Association.
Answer: Business - Not for profitGovernment - Runs like a
mini-governmentCommunity - Mutual reasons for buying into area
◍ True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association..
Answer: TrueProviding for the governance, business, and communal aspects
of the association 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: Planned Community - Owners owns his lot/living unit and
community owns common areas (tennis courts, basketball courts,
etc.).Condominium - Individual owns unit and undivided interest
(percentage) in common elements.Cooperative - Individual owns stock or
membership in cooperative and holds a proprietary lease/occupancy
agreement.
◍ Community associations can be grouped into clusters called:.
Answer: Master or Umbrella Associations - More than one residential
community.Mixed-Use Development - Mixture of residential and
commercial."55 and Older" Communities - 80% of residents are 55+ and at
least one per unit.
◍ Each of the following are basic types of residential community associations
EXCEPT: a. Planned communityb. Townhousec. Cooperatived.
Condominium.
Answer: b. TownhouseWhile many community associations are indeed
townhouse communities, not all such developments are necessarily
associations. A community association is defined in terms of ownership
rights—not architectural style.
◍ Name the sources of legal obligations for a Community Association.
Answer: Federal, state and local statutes, regulations and case
law.Governing documentsStandards set by professional bodies
(AICPA)Lender requirements
◍ Types of Federal Law Applying to Community Associations.
Answer: Equal Employment Opportunity CommissionFair Debt Collection
Practices ActFair Labor and Standards ActFamily and Medical Leave
ActFICAOSHABankruptcy CodeFCCFair Housing Act
◍ Types of State Statutes Applying to Community Associations.
Answer: General - Applies to all types of associationsSpecifics - Applies to
, only one type of association (takes precedence over any general statutes and
governing documents.Uniform - National Conference of Commissioners
draft generic content-specific wording to encourage uniformity among the
states.
◍ Purpose of Community Association Governing Documents.
Answer: Provide legal structure and operation of a community association.
◍ Hierarchy of Governing Documents.
Answer: Recorded map, plat or planDeclaration, CC&Rs, proprietary lease
or occupancy agreement.Articles of IncorporationBylawsBoard Resolutions
◍ Declaration, CC&Rs, proprietary lease or occupancy agreement..
Answer: Declarations - CondoCC&Rs - Planned CommunityProprietary
Lease/Occupancy Agrmt - Coop
◍ Articles of Incorporation.
Answer: Brings corporation into existence.Coops must incorporate because
the the corporation owns all the property.Other types of communities may
incorporate.
◍ Benefits of incorporating.
Answer: Limit liability of individual owners.Right granted all
corporationsEasier to deal with utility companies, vendors, etc.
◍ Adoption of the annual budget is an example of which of the following type
of resolution? a. policy resolutionb. administrative resolutionc. special
resolutiond. general resolution.
Answer: d. general resolutionGeneral resolutions involve routine events
such as adoption of the annual budget.
◍ True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community..
Answer: TrueThe governing documents define the rights and obligations of
both the community association and its owners, create a binding relationship
between each owner and the community association, and establish the
, mechanisms for governing and funding the community association's
operations.
◍ Bylaws.
Answer: Formally adopted regulations for the administration and
management of a community association.- Meeting procedures including
voting rights- Board powers and duties
◍ Board Resolutions.
Answer: A motion that follows a set format and formally adopted by the
board.
◍ 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..
Answer: FalseAs a general rule, documents lower in the hierarchy of
authority cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy, and
therefore would prevail in such a conflict.
◍ Complete the following sentence: A __________ state statute is one that
applies only to one or more types of community associations. a. generalb.
complexc. specificd. uniform.
Answer: c. specificA specific state statute is one that applies only to one or
more types of community associations. For example, most states have a
condominium act which provides for the establishment and operation of
condominiums as legal entities. These acts vary in terms of their
complexity—the simplest ones just allow for the creation of condominiums.
◍ Public Offering Statement.
Answer: Provides association information to first prospective buyers in
community.Required by state statute.Not considered a governing document.
◍ Types of Resolutions.
Answer: Policy - Affects owners' rights and obligations.Administrative -
Addresses the internal operations of community association.Special - Apply
QUESTIONS WITH ANSWERS GRADED
A+
◍ Characteristics of a Community Association.
Answer: Mandatory membershipMutually binding documentsLien-based
assessments
◍ 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..
Answer: c. A requirement of community association ownership is serving on
the board of directors.This is one of the three key characteristics common to
all community associations. Members of an association are not legally
required to serve on the board of directors; however, the overall success on
the community is dependent upon the members' involvement its affairs.
◍ Purposes of a Community Association.
Answer: Business - Not for profitGovernment - Runs like a
mini-governmentCommunity - Mutual reasons for buying into area
◍ True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association..
Answer: TrueProviding for the governance, business, and communal aspects
of the association 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: Planned Community - Owners owns his lot/living unit and
community owns common areas (tennis courts, basketball courts,
etc.).Condominium - Individual owns unit and undivided interest
(percentage) in common elements.Cooperative - Individual owns stock or
membership in cooperative and holds a proprietary lease/occupancy
agreement.
◍ Community associations can be grouped into clusters called:.
Answer: Master or Umbrella Associations - More than one residential
community.Mixed-Use Development - Mixture of residential and
commercial."55 and Older" Communities - 80% of residents are 55+ and at
least one per unit.
◍ Each of the following are basic types of residential community associations
EXCEPT: a. Planned communityb. Townhousec. Cooperatived.
Condominium.
Answer: b. TownhouseWhile many community associations are indeed
townhouse communities, not all such developments are necessarily
associations. A community association is defined in terms of ownership
rights—not architectural style.
◍ Name the sources of legal obligations for a Community Association.
Answer: Federal, state and local statutes, regulations and case
law.Governing documentsStandards set by professional bodies
(AICPA)Lender requirements
◍ Types of Federal Law Applying to Community Associations.
Answer: Equal Employment Opportunity CommissionFair Debt Collection
Practices ActFair Labor and Standards ActFamily and Medical Leave
ActFICAOSHABankruptcy CodeFCCFair Housing Act
◍ Types of State Statutes Applying to Community Associations.
Answer: General - Applies to all types of associationsSpecifics - Applies to
, only one type of association (takes precedence over any general statutes and
governing documents.Uniform - National Conference of Commissioners
draft generic content-specific wording to encourage uniformity among the
states.
◍ Purpose of Community Association Governing Documents.
Answer: Provide legal structure and operation of a community association.
◍ Hierarchy of Governing Documents.
Answer: Recorded map, plat or planDeclaration, CC&Rs, proprietary lease
or occupancy agreement.Articles of IncorporationBylawsBoard Resolutions
◍ Declaration, CC&Rs, proprietary lease or occupancy agreement..
Answer: Declarations - CondoCC&Rs - Planned CommunityProprietary
Lease/Occupancy Agrmt - Coop
◍ Articles of Incorporation.
Answer: Brings corporation into existence.Coops must incorporate because
the the corporation owns all the property.Other types of communities may
incorporate.
◍ Benefits of incorporating.
Answer: Limit liability of individual owners.Right granted all
corporationsEasier to deal with utility companies, vendors, etc.
◍ Adoption of the annual budget is an example of which of the following type
of resolution? a. policy resolutionb. administrative resolutionc. special
resolutiond. general resolution.
Answer: d. general resolutionGeneral resolutions involve routine events
such as adoption of the annual budget.
◍ True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community..
Answer: TrueThe governing documents define the rights and obligations of
both the community association and its owners, create a binding relationship
between each owner and the community association, and establish the
, mechanisms for governing and funding the community association's
operations.
◍ Bylaws.
Answer: Formally adopted regulations for the administration and
management of a community association.- Meeting procedures including
voting rights- Board powers and duties
◍ Board Resolutions.
Answer: A motion that follows a set format and formally adopted by the
board.
◍ 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..
Answer: FalseAs a general rule, documents lower in the hierarchy of
authority cannot conflict with or change the terms of those above them. The
recorded map, plat, or plan is above the bylaws in the hierarchy, and
therefore would prevail in such a conflict.
◍ Complete the following sentence: A __________ state statute is one that
applies only to one or more types of community associations. a. generalb.
complexc. specificd. uniform.
Answer: c. specificA specific state statute is one that applies only to one or
more types of community associations. For example, most states have a
condominium act which provides for the establishment and operation of
condominiums as legal entities. These acts vary in terms of their
complexity—the simplest ones just allow for the creation of condominiums.
◍ Public Offering Statement.
Answer: Provides association information to first prospective buyers in
community.Required by state statute.Not considered a governing document.
◍ Types of Resolutions.
Answer: Policy - Affects owners' rights and obligations.Administrative -
Addresses the internal operations of community association.Special - Apply
