M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM
REAL QUESTIONS STUDYGUIDE WITH CORRECT
ANSWERS 2024 JUST RELEASED
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. - CORRECT ANSWER >>>>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.
,2|Page
True or False. The primary purpose of a community association is to
provide for the governance, business, and communal aspects of the
association. - CORRECT ANSWER >>>>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 - CORRECT ANSWER >>>>b. Townhouse
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 - CORRECT ANSWER >>>>d. general resolution
General resolutions involve routine events such as adoption of the
annual budget.
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True or false. The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community. - CORRECT ANSWER >>>>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. - CORRECT ANSWER >>>>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
c. specific
d. uniform - CORRECT ANSWER >>>>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.
, 4|Page
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. - CORRECT ANSWER >>>>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 - CORRECT ANSWER >>>>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.
True or False. The public offering statement is a governing document,
as it often distributed along with the governing documents. - CORRECT
ANSWER >>>>False
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