M100 Community Association Management Exam Questions with correct
Answers
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.: 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.
2. True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association.: True
Providing 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. Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium: b. Townhouse
While many community associations are indeed townhouse communities, not
all such developments are necessarily associations. A community
association is de- fined 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?
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,M100 Community Association Management Exam Questions with correct
Answers
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution: d. general resolution
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149
,M100 Community Association Management Exam Questions with correct
Answers
General resolutions involve routine events such as adoption of the annua
budget.
5. True or false. The purpose of a community association's governing docu-
ments is to provide for the legal structure and operation of the community.: -
True
The 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.
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.: False
As 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.
7. Complete the following sentence: A state statute is one that
applies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform: c. specific
A 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.
8. True or false. A proprietary lease or occupancy agreement in a cooperative
defines the member or stockholder's rights and obligations in relation to the
living unit.: True
In a cooperative, the proprietary lease or occupancy agreement serves
3 /
149
, M100 Community Association Management Exam Questions with correct
Answers
generally the same purpose as the declaration, CC&R, or master deed in
other community associations. Among other things, the proprietary lease
or occupancy agreement identifies the premises that the stockholder is
permitted to occupy exclusively, defines the term of the lease and the
rent that is payable by the stockholder,
4 /
149
Answers
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.: 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.
2. True or False. The primary purpose of a community association is to provide
for the governance, business, and communal aspects of the association.: True
Providing 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. Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium: b. Townhouse
While many community associations are indeed townhouse communities, not
all such developments are necessarily associations. A community
association is de- fined 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?
1 /
149
,M100 Community Association Management Exam Questions with correct
Answers
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution: d. general resolution
2 /
149
,M100 Community Association Management Exam Questions with correct
Answers
General resolutions involve routine events such as adoption of the annua
budget.
5. True or false. The purpose of a community association's governing docu-
ments is to provide for the legal structure and operation of the community.: -
True
The 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.
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.: False
As 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.
7. Complete the following sentence: A state statute is one that
applies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform: c. specific
A 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.
8. True or false. A proprietary lease or occupancy agreement in a cooperative
defines the member or stockholder's rights and obligations in relation to the
living unit.: True
In a cooperative, the proprietary lease or occupancy agreement serves
3 /
149
, M100 Community Association Management Exam Questions with correct
Answers
generally the same purpose as the declaration, CC&R, or master deed in
other community associations. Among other things, the proprietary lease
or occupancy agreement identifies the premises that the stockholder is
permitted to occupy exclusively, defines the term of the lease and the
rent that is payable by the stockholder,
4 /
149
