M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
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.
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.
Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium
b. Townhouse
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
While 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.
Adoption of the annual budget is an example of which of the following type of
resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution
d. general resolution
General 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.
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.
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.
Complete the following sentence: A __________ state statute is one that applies
only to one or more types of community associations.
a. general
b. complex
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
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.
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 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, and
establishes the powers and obligations of the cooperative's board of directors,
including assessment rights.
Complete the following sentence: The __________ bring the community
association into existence, define its basic purposes and powers, and indicate
whether stock will be issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation
d. articles of incorporation
A community association's corporate structure is established when a developer
sets up the association. The developer files articles of incorporation—sometimes
called a corporate charter—with the appropriate state corporation agency.
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
True or False. The public offering statement is a governing document, as it often
distributed along with the governing documents.
False
The public offering statement is not a governing document; instead, it is simply a
disclosure statement that provides information on the community association to
prospective buyers.
Each of the following legal sources specify management authority and
responsibilities for community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions
a. survey data
All three types of legal sources—state statutes, governing documents, and court
decisions—specify the authority or power of different parties in a community
association and the responsibilities or duties of the different parties.
True or false. The basic authority in a community association lies with the
developer.
False
The basic authority in a community association lies with the owners. In order for
the association to govern effectively the owners elect a board of directors to act
on their behalf. The governing documents delegate most of the association's
decision-making powers to a board.
Complete the following sentence: The board of directors in a community
association has a _____________ to act in the best interests and for the benefit
of the community as a whole.
a. bond
b. fiduciary duty
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
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.
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.
Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium
b. Townhouse
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
While 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.
Adoption of the annual budget is an example of which of the following type of
resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution
d. general resolution
General 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.
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.
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.
Complete the following sentence: A __________ state statute is one that applies
only to one or more types of community associations.
a. general
b. complex
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
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.
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 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, and
establishes the powers and obligations of the cooperative's board of directors,
including assessment rights.
Complete the following sentence: The __________ bring the community
association into existence, define its basic purposes and powers, and indicate
whether stock will be issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation
d. articles of incorporation
A community association's corporate structure is established when a developer
sets up the association. The developer files articles of incorporation—sometimes
called a corporate charter—with the appropriate state corporation agency.
, M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
True or False. The public offering statement is a governing document, as it often
distributed along with the governing documents.
False
The public offering statement is not a governing document; instead, it is simply a
disclosure statement that provides information on the community association to
prospective buyers.
Each of the following legal sources specify management authority and
responsibilities for community associations EXCEPT:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions
a. survey data
All three types of legal sources—state statutes, governing documents, and court
decisions—specify the authority or power of different parties in a community
association and the responsibilities or duties of the different parties.
True or false. The basic authority in a community association lies with the
developer.
False
The basic authority in a community association lies with the owners. In order for
the association to govern effectively the owners elect a board of directors to act
on their behalf. The governing documents delegate most of the association's
decision-making powers to a board.
Complete the following sentence: The board of directors in a community
association has a _____________ to act in the best interests and for the benefit
of the community as a whole.
a. bond
b. fiduciary duty
