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M-100 THE ESSENTIALS OF COMMUNITY
ASSOCIATION MANAGEMENT EXAM LATEST
WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREADY GRADED A+
100% GUARANTEED PASS!
community association - .....ANSWER ...✔✔ legal
entity in which the owners enjoy the protection,
enhancement, maintenance & preservation of their
homes & property
community association has 3 defining characteristics -
.....ANSWER ...✔✔ Membership 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 - .....ANSWER ...✔✔ legal claim by one party
(community association) on the property of another
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(delinquent owner) to obtain the payment of a debt or
the satisfaction of an obligation.
What does the lien do? - .....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 - .....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) -
.....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 - .....ANSWER ...✔✔ Condominium;
owner owns his living unit & an undivided interest in the
common elements of the community. Each owner owns a
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% of the common elements, which consist of everything
except the living units.
third type - .....ANSWER ...✔✔ Cooperative; person
owns stock or membership; holds a proprietary lease or
occupancy agreement for his living unit
Proprietary lease or occupancy agreement -
.....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.
3 types of residential community associations can exist
by themselves or can be group in clusters called: -
.....ANSWER ...✔✔ Master or umbrella associations:
consists of more than 1 residential community
association.
Second type - .....ANSWER ...✔✔ Mixed-use
development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
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Third type - .....ANSWER ...✔✔ 55 & older
communities; must have 1 person who is 55 of age or
older living in at least 80% of occupied units.
Sources of legal obligations for a community association
- .....ANSWER ...✔✔ Federal, state & local statues,
regulations, & case law
second source - .....ANSWER ...✔✔ legal documents
unique to the community association that bind the
association & its owners
third source - .....ANSWER ...✔✔ lender requirements;
requirements set by secondary institutions (ex; FHA,
Fannie Mae)
fourth source - .....ANSWER ...✔✔ standards set by
professional bodies; ex: auditing standards set the
American Institute of CPAs
Types of Federal Laws applying to community
associations - .....ANSWER ...✔✔ Equal employment
opportunity commission (EEOC); federal govt prohibits
discrimination against otherwise qualified people in
hiring, promotion, dismissal, based on specific
M-100 THE ESSENTIALS OF COMMUNITY
ASSOCIATION MANAGEMENT EXAM LATEST
WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREADY GRADED A+
100% GUARANTEED PASS!
community association - .....ANSWER ...✔✔ legal
entity in which the owners enjoy the protection,
enhancement, maintenance & preservation of their
homes & property
community association has 3 defining characteristics -
.....ANSWER ...✔✔ Membership 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 - .....ANSWER ...✔✔ legal claim by one party
(community association) on the property of another
,2|Page
(delinquent owner) to obtain the payment of a debt or
the satisfaction of an obligation.
What does the lien do? - .....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 - .....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) -
.....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 - .....ANSWER ...✔✔ Condominium;
owner owns his living unit & an undivided interest in the
common elements of the community. Each owner owns a
,3|Page
% of the common elements, which consist of everything
except the living units.
third type - .....ANSWER ...✔✔ Cooperative; person
owns stock or membership; holds a proprietary lease or
occupancy agreement for his living unit
Proprietary lease or occupancy agreement -
.....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.
3 types of residential community associations can exist
by themselves or can be group in clusters called: -
.....ANSWER ...✔✔ Master or umbrella associations:
consists of more than 1 residential community
association.
Second type - .....ANSWER ...✔✔ Mixed-use
development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
, 4|Page
Third type - .....ANSWER ...✔✔ 55 & older
communities; must have 1 person who is 55 of age or
older living in at least 80% of occupied units.
Sources of legal obligations for a community association
- .....ANSWER ...✔✔ Federal, state & local statues,
regulations, & case law
second source - .....ANSWER ...✔✔ legal documents
unique to the community association that bind the
association & its owners
third source - .....ANSWER ...✔✔ lender requirements;
requirements set by secondary institutions (ex; FHA,
Fannie Mae)
fourth source - .....ANSWER ...✔✔ standards set by
professional bodies; ex: auditing standards set the
American Institute of CPAs
Types of Federal Laws applying to community
associations - .....ANSWER ...✔✔ Equal employment
opportunity commission (EEOC); federal govt prohibits
discrimination against otherwise qualified people in
hiring, promotion, dismissal, based on specific
