CMCA Study Guide Complete 2023
Articles of incorporation Ans- Bring the corporation into existence, define its basic
purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board
of directors
Bylaws Ans- Formally adopted governing regulations for the a...
CMCA Study Guide Complete 2023
Articles of incorporation Ans- Bring the corporation into existence, define its basic
purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board
of directors
Bylaws Ans- Formally adopted governing regulations for the administration and management of a
community association
CC & Rs (Covenants, Conditions & Restrictions) Ans- The governing documents that
dictate how the homeowners association operates and what rules the owners—and their tenants and
guests —
must obey. These legal documents might also be called
the bylaws, the master deed, the houses rules or another name. These documents and rules are legally
enforceable by the homeowners association, unless a specific provision conflicts with federal, state or
local laws
Community association Ans- A group of owners who wish to provide a communal basis for preserving,
maintaining, and enhancing their homes and property
Condominium Ans- A living unit fully owned by an individual with an undivided interest in the common
elements of the community. The community association itself owns no
real estate as an association
Cooperative Ans- Wherein an individual owns stock or membership in the cooperative, and holds a
proprietary lease or occupancy agreement for his or her living unit
Declaration Ans- Used interchangeably with CC & Rs
Governing documents Ans- Documents which provide for the legal structure and
operation of the community
,Indemnification Ans- to exempt an individual or entity from responsibility for claims made against the
organization and to reimburse the individual or entity for damages or expenses incurred as a result of
such claims
Master association Ans- An organization of homeowners in a large condominium or planned unit
development (PUD) which includes representatives from other, smaller
homeowner organizations
Mixed use development Ans- A development which is designed to mix two or more
"uses" of land together (i.e. a shopping center which offers office space for dentists)
Planned community Ans- the most common type of community association, where an owner owns his
or her lot and/or living unit and the community owns any common areas, such as tennis courts and
roads for the use and benefit of the lot owners
Proprietary lease Ans- A rental agreement between a cooperative housing corporation and a share
holder allowing use of a certain unit in the premises
Public offering statement Ans- A disclosure statement prepared by a developer that
contains all material facts about a property offered for sale and that must be provided to a prospective
purchaser in accordance with applicable state or federal law
Resolution Ans- A motion that follows a set format and is formally adopted by the board of directors
Statute Ans- A formal written enactment of a legislative authority that governs a country, state, city or
county
Umbrella association Ans- A cluster of community association types that can include aspects of
homeowners associations, condominiums and cooperatives
Ad hoc committee Ans- Used when an objective needs consideration and no standing
, committee within the organization can absorb that issue into its scope. Usually these
committees
are used on a short
-
term basis, such as temporary oversight of an issue
or review of the standing rules of that community
Board liaison system Ans- Directors are assigned to certain committees to guide the
committee on Board policy and procedures and to repo
rt back to the Board.
Directors serving as a liaison must distinguish their role from the role of the
committee chairperson.
Business judgment rule Ans- If a board has exercised reasonable business judgment in
making a decision, the court will generally not c
onsider the board negligent in it
s
fiduciary duty, nor will the court substitute its judgment for that of the board
Fiduciary duty Ans- Requires directors to act in the best interests and for the benefit of
the corporation, thus the community as a whole.
the members are required to avoid conflicts
of interest and acting
out of self-interest;
the members are also required to act as reasonable
people in managing the association's affairs
Management ethics Ans- consists of a review of governing
documents and existing policies and procedures, current condition of the property,
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