M100 Community Association Management
1. Each of the fol- c. A requirement of community association ownership is serving on the board of
lowing are key directors.
characteristics of
community asso- This is one of the three key characteristics common to all community associations.
ciations EXCEPT: Members of an association are not legally required to serve on the board of
a. Mandatory directors; however, the overall success on the community is dependent upon the
lien-based eco- members' involvement its affairs.
nomic charges or
assessments are
levied on each
owner in or-
der to operate
and maintain the
community asso-
ciation.
b. Membership
in the commu-
nity association
is mandatory and
automatic for all
owners.
c. A requirement
of community as-
sociation owner-
ship is serving on
the board of di-
rectors.
d. Certain doc-
uments bind all
owners to be
governed by the
, M100 Community Association Management
community asso-
ciation.
2. True or False. True
The primary pur-
pose of a com- Providing for the governance, business, and communal aspects of the association
munity associa- is achieved by administering, maintaining, and enhancing a residential real estate
tion is to provide development, and through the establishment of a system of property rights,
for the gover- binding covenants and restrictions, and rules and regulations.
nance, business,
and communal
aspects of the as-
sociation.
3. Each of the fol- b. Townhouse
lowing are ba-
sic types of res- While many community associations are indeed townhouse communities, not
idential commu- all such developments are necessarily associations. A community association is
nity associations defined in terms of ownership rights—not architectural style.
EXCEPT:
a. Planned com-
munity
b. Townhouse
c. Cooperative
d. Condominium
4. Adoption of the d. general resolution
annual budget is
an example of General resolutions involve routine events such as adoption of the annual budget.
which of the fol-
lowing type of
resolution?
, M100 Community Association Management
a. policy resolu-
tion
b. administrative
resolution
c. special resolu-
tion
d. general resolu-
tion
5. True or false. True
The purpose of a
community asso- The governing documents define the rights and obligations of both the commu-
ciation's govern- nity association and its owners, create a binding relationship between each owner
ing documents is and the community association, and establish the mechanisms for governing and
to provide for funding the community association's operations.
the legal struc-
ture and opera-
tion of the com-
munity.
6. True or false. Ac- False
cording to the
general hierar- As a general rule, documents lower in the hierarchy of authority cannot conflict
chy of author- with or change the terms of those above them. The recorded map, plat, or plan is
ity for govern- above the bylaws in the hierarchy, and therefore would prevail in such a conflict.
ing documents,
the bylaws would
control in a con-
flict with the
recorded map,
plat, or plan.
, M100 Community Association Management
7. Complete the fol- c. specific
lowing sentence:
A __________ state A specific state statute is one that applies only to one or more types of community
statute is one associations. For example, most states have a condominium act which provides
that applies only for the establishment and operation of condominiums as legal entities. These acts
to one or more vary in terms of their complexity—the simplest ones just allow for the creation of
types of com- condominiums.
munity associa-
tions.
a. general
b. complex
c. specific
d. uniform
8. True or false. A True
proprietary lease
or occupancy In a cooperative, the proprietary lease or occupancy agreement serves generally
agreement in a the same purpose as the declaration, CC&R, or master deed in other community
cooperative de- associations. Among other things, the proprietary lease or occupancy agreement
fines the mem- identifies the premises that the stockholder is permitted to occupy exclusively,
ber or stockhold- defines the term of the lease and the rent that is payable by the stockholder, and
er's rights and establishes the powers and obligations of the cooperative's board of directors,
obligations in re- including assessment rights.
lation to the liv-
ing unit.
9. Complete the fol- d. articles of incorporation
lowing sentence:
The __________ A community association's corporate structure is established when a developer
bring the com- sets up the association. The developer files articles of incorporation—sometimes
munity associa- called a corporate charter—with the appropriate state corporation agency.
tion into exis-
1. Each of the fol- c. A requirement of community association ownership is serving on the board of
lowing are key directors.
characteristics of
community asso- This is one of the three key characteristics common to all community associations.
ciations EXCEPT: Members of an association are not legally required to serve on the board of
a. Mandatory directors; however, the overall success on the community is dependent upon the
lien-based eco- members' involvement its affairs.
nomic charges or
assessments are
levied on each
owner in or-
der to operate
and maintain the
community asso-
ciation.
b. Membership
in the commu-
nity association
is mandatory and
automatic for all
owners.
c. A requirement
of community as-
sociation owner-
ship is serving on
the board of di-
rectors.
d. Certain doc-
uments bind all
owners to be
governed by the
, M100 Community Association Management
community asso-
ciation.
2. True or False. True
The primary pur-
pose of a com- Providing for the governance, business, and communal aspects of the association
munity associa- is achieved by administering, maintaining, and enhancing a residential real estate
tion is to provide development, and through the establishment of a system of property rights,
for the gover- binding covenants and restrictions, and rules and regulations.
nance, business,
and communal
aspects of the as-
sociation.
3. Each of the fol- b. Townhouse
lowing are ba-
sic types of res- While many community associations are indeed townhouse communities, not
idential commu- all such developments are necessarily associations. A community association is
nity associations defined in terms of ownership rights—not architectural style.
EXCEPT:
a. Planned com-
munity
b. Townhouse
c. Cooperative
d. Condominium
4. Adoption of the d. general resolution
annual budget is
an example of General resolutions involve routine events such as adoption of the annual budget.
which of the fol-
lowing type of
resolution?
, M100 Community Association Management
a. policy resolu-
tion
b. administrative
resolution
c. special resolu-
tion
d. general resolu-
tion
5. True or false. True
The purpose of a
community asso- The governing documents define the rights and obligations of both the commu-
ciation's govern- nity association and its owners, create a binding relationship between each owner
ing documents is and the community association, and establish the mechanisms for governing and
to provide for funding the community association's operations.
the legal struc-
ture and opera-
tion of the com-
munity.
6. True or false. Ac- False
cording to the
general hierar- As a general rule, documents lower in the hierarchy of authority cannot conflict
chy of author- with or change the terms of those above them. The recorded map, plat, or plan is
ity for govern- above the bylaws in the hierarchy, and therefore would prevail in such a conflict.
ing documents,
the bylaws would
control in a con-
flict with the
recorded map,
plat, or plan.
, M100 Community Association Management
7. Complete the fol- c. specific
lowing sentence:
A __________ state A specific state statute is one that applies only to one or more types of community
statute is one associations. For example, most states have a condominium act which provides
that applies only for the establishment and operation of condominiums as legal entities. These acts
to one or more vary in terms of their complexity—the simplest ones just allow for the creation of
types of com- condominiums.
munity associa-
tions.
a. general
b. complex
c. specific
d. uniform
8. True or false. A True
proprietary lease
or occupancy In a cooperative, the proprietary lease or occupancy agreement serves generally
agreement in a the same purpose as the declaration, CC&R, or master deed in other community
cooperative de- associations. Among other things, the proprietary lease or occupancy agreement
fines the mem- identifies the premises that the stockholder is permitted to occupy exclusively,
ber or stockhold- defines the term of the lease and the rent that is payable by the stockholder, and
er's rights and establishes the powers and obligations of the cooperative's board of directors,
obligations in re- including assessment rights.
lation to the liv-
ing unit.
9. Complete the fol- d. articles of incorporation
lowing sentence:
The __________ A community association's corporate structure is established when a developer
bring the com- sets up the association. The developer files articles of incorporation—sometimes
munity associa- called a corporate charter—with the appropriate state corporation agency.
tion into exis-
