The Essentials of community association management M-100 Q&A

The Essentials of community association management M-100 Q&A community association - CORRECT ANSWER-legal entity in which the owners enjoy the protection, enhancement, maintenance & preservation of their homes & property community association has 3 defining characteristics - CORRECT ANSWERMembership in the community is mandatory & automatic for all owners; certain association docs bind the owner & the association to each other through mandated actions; mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate & maintain the community assocation lien - CORRECT ANSWER-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. What does the lien do? - CORRECT ANSWER-Placing a lien on an owner's property protects the community association's interests. It encourages payment of the debt. Consequence of lien is the owner cant sell or transfer the unit without settling the debt. Purpose of a community assocation - CORRECT ANSWER-to provide for the community, business, & governance aspects of the association. This is achieved by administering, maintaining, & enhancing a residential real estate development, and through the establishment of a system of property rights, binding covenants & restrictions, & rules & regulations. 3 basic types of residential community associations (1) - CORRECT ANSWER-Planned community; owner owns his unit ; community owns any common areas such as tennis courts, for the use & benefit of the lot owners second type - CORRECT ANSWER-Condominium; owner owns his living unit & an undivided interest in the common elements of the community. Each owner owns a % of the common elements, which consist of everything except the living units. third type - CORRECT ANSWER-Cooperative; person owns stock or membership; holds a proprietary lease or occupancy agreement for his living unit Proprietary lease or occupancy agreement - CORRECT ANSWER-defines the member or stockholders' rights & obligations in relation to the living unit. The community association owns all of the real estate as a not-for-profit corporation.