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Resolution -CORRECT ANSWER. Is a motion that follows a set format and is
formally adopted by the board of directors.
Community Association -CORRECT ANSWER. Is a legal entity in which the
owners enjoy the protection, enhancement, maintenance and preservation
of their homes and property.
Characteristics of a Community Association -CORRECT ANSWER. Mandatory
membership, mutually binding documents and lien-based assessments.
Lien -CORRECT ANSWER. Is a 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.
Types of Community Associations -CORRECT ANSWER. Planned Community,
Condominium and Cooperative.
Proprietary Lease or Occupancy Agreement -CORRECT ANSWER.
Defines the member or stockholder's rights and obligations in
relation to the living unit.
Master or Umbrella Associations -CORRECT ANSWER. A master or umbrella
association consists of more than one residential community association.
Mixed-use Developments -CORRECT ANSWER. A mixed-use development
usually consists of a mixture of residential and commercial and/or
industrial uses.
,"55 2and 2Older" 2Communities 2-CORRECT 2ANSWER. 2Must 2have 2one 2person 2who
2is 255 2years 2of 2age 2or 2older 2living 2in 2at 2least 280% 2of 2its 2occupied 2units.
Legal 2Obligations 2for 2a 2Community 2Association 2-CORRECT 2ANSWER. 2Federal,
2state, 2and 2local 2statues, 2regulations, 2and 2case 2law; 2Governing 2Documents;
2Lender 2Requirements 2(FHA, 2Fannie 2Mae, 2Freddie 2Mac); 2Standards 2set 2by
2professional 2bodies 2(AICPA).
General 2State 2Statutes 2-CORRECT 2ANSWER. 2Applies 2to 2all 2types 2of
2associations, 2including 2community 2associations 2(for 2example, 2regular
2corporate 2or 2not-for-profit 2corporate 2statutes).
Specific 2State 2Statutes 2-CORRECT 2ANSWER. 2Applies 2to 2only 2one 2of 2the 2types 2of
2community 2associations, 2takes 2precedence 2over 2any 2general 2statute 2and
2takes 2precedence 2over 2the 2association's 2governing 2documents 2(for
2example, 2condominium 2act, 2planned 2community 2act).
Uniform 2State 2Statutes 2-CORRECT 2ANSWER. 2National 2Conference 2of
2Commissioners 2on 2Uniform 2State 2Laws 2draft 2generic, 2content-specific
2wording 2for 2topical 2issues 2to 2encourage 2uniformity 2among 2the 2states.
Purpose 2of 2Governing 2Documents 2-CORRECT 2ANSWER. 2To 2provide 2for 2the
2legal 2structure 2and 2operation 2of 2a 2community 2association.
Governing 2Documents 2-CORRECT 2ANSWER. 2Define 2the 2rights 2and 2obligations
2of 2both 2the 2community 2association 2and 2its 2owners; 2create 2a 2binding
2relationship 2between 2each 2owner 2and 2the 2community 2association;
2establish 2the 2mechanisms 2for 2governing 2and 2funding 2the 2community
2association's 2operations; 2set 2forth 2rules 2and 2standards.
General 2Hierarchy 2of 2Authority 2of 2Governing 2Documents 2-CORRECT 2ANSWER.
2Recorded 2map, 2plat, 2or 2plan; 2Declaration, 2CC&Rs, 2master 2deed;
2Proprietary 2lease 2or 2occupancy 2agreement; 2Articles 2of 2Incorporation;
2Bylaws; 2Board 2Resolutions 2(cannot 2conflict 2with 2documents 2above 2it 2in 2the
2hierarchy).
The 2Articles 2of 2Incorporation 2-CORRECT 2ANSWER. 2Bring 2the 2corporation 2into
2existence; 2define 2its 2basic 2purposes 2and 2powers; 2indicate 2whether 2stock
2will 2be 2issued; 2indicate 2the 2number 2of 2board 2members 2and 2identify 2the
2initial 2board.
Benefits 2of 2incorporating 2-CORRECT 2ANSWER. 2Limit 2liability 2of 2individual
2owners; 2right 2granted 2all 2corporations; 2easier 2to 2deal 2with 2utility
2companies, 2vendors, 2etc; 2grants 2the 2board 2of 2directors 2the 2same 2rights
2as 2all 2board 2members 2of 2incorporated 2entities 2under 2state 2statutes.
Bylaws 2-CORRECT 2ANSWER. 2Formal 2procedures 2for 2the 2administration 2and
2management 2of 2a 2community 2association 2(for 2example, 2meeting
2procedures 2- 2including 2voting 2rights, 2board 2powers 2and 2duties,
2indemnification 2of 2officers 2and 2directors).
,Public 2Offering 2Statement 2-CORRECT 2ANSWER. 2Provides 2association
2information 2to 2first 2prospective 2buyers 2in 2a 2new 2community; 2required 2by
2state 2statute; 2not 2considered 2a 2governing 2document.
Rule, 2also 2called 2a 2rule 2or 2regulation 2-CORRECT 2ANSWER. 2Is 2a 2specific
2statement 2of 2required 2behavior 2or 2action, 2a 2violation 2of 2which 2carries 2a
2penalty 2(sometimes 2called 2a 2sanction).
Architectural 2Guideline 2-CORRECT 2ANSWER. 2Is 2a 2rule 2that 2applies 2to 2the
2appearance 2of 2an 2owner's 2lot 2of 2the 2exterior 2of 2his 2or 2her 2unit 2or
2improvements.
Resolution 2Format 2-CORRECT 2ANSWER. 2Purpose, 2Authority, 2Scope 2and 2Intent, 2and
2Specifications.
Due 2Process 2Procedure 2-CORRECT 2ANSWER. 2A 2formal 2process 2to 2protect 2the 2rights
2of 2all 2parties.
Alternative 2Dispute 2Resolution 2-CORRECT 2ANSWER. 2It 2involves 2submitting 2a
2dispute 2to 2a 2trained, 2uninvolved 2third 2party 2for 2assistance 2with 2solving
2a 2problem.
Arbitration 2-CORRECT 2ANSWER. 2Is 2a 2process 2in 2which 2a 2third 2party 2- 2called
2the 2arbitrator 2- 2renders 2a 2decision 2as 2to 2the 2respective 2liabilities 2of 2all
2parties.
Mediation 2-CORRECT 2ANSWER. 2Is 2a 2non-adversarial 2process 2that 2is 2intended
2to 2bring 2about 2a 2"win- 2win" 2resolution. 2In 2this 2process 2a 2neutral 2third
2party 2- 2called 2a 2mediator 2- 2attempts 2to 2guide 2the 2parties 2into 2reaching 2a
2resolution 2or 2settlement 2that 2is 2favorable 2to 2everyone.
Internal 2Resources 2for 2Enforcement 2-CORRECT 2ANSWER. 2Suspend 2voting
2rights, 2suspend 2use 2of 2amenities, 2fines, 2eviction, 2and 2self-help
2corrections.
External 2Resources 2for 2Enforcement 2-CORRECT 2ANSWER. 2Police/fire,
2animal 2control, 2zoning, 2building/planning, 2and 2health.
Cease 2and 2Desist 2-CORRECT 2ANSWER. 2Specific 2description 2of 2the 2alleged
2violation, 2the 2action 2required 2to 2resolve 2the 2alleged 2violation, 2a 2specific
2time 2within 2which 2the 2alleged 2violation 2must 2be 2corrected, 2and 2the
2penalty 2(sanction) 2which 2may 2be 2imposed 2after 2a 2hearing 2if 2the 2alleged
2violation 2is 2not 2corrected 2within 2the 2stated 2time 2(specified 2by 2state
2statute, 2your 2governing 2documents 2or 2board 2resolution).
Hearing 2Notice 2-CORRECT 2ANSWER. 2A 2written 2notice 2to 2an 2alleged 2violator 2that
2a 2hearing 2will 2be 2held 2to 2consider 2his 2or 2her 2alleged 2violation.
Hearing 2-CORRECT 2ANSWER. 2This 2is 2a 2fact-finding 2session. 2It 2is 2an 2inquiry
2into 2the 2allegations 2and 2an 2investigation 2of 2them.
, Default 2hearing 2-CORRECT 2ANSWER. 2A 2default 2hearing 2is 2one 2held 2when 2the
2alleged 2violator 2fails 2to 2appear.