M-100 The Essentials of community association management ||ASWERED AND GRADED|| ACE THE TEST
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Course
M-100
Institution
M-100
community association - Correct Answer legal entity in which the owners enjoy the protection, enhancement, maintenance & preservation of their homes & property
community association has 3 defining characteristics - Correct Answer Membership in the community is mandatory & automatic for all o...
M-100 The Essentials of community association
management ||ASWERED AND GRADED|| ACE THE
TEST
community association - Correct Answer legal entity in which the owners enjoy the protection,
enhancement, maintenance & preservation of their homes & property
community association has 3 defining characteristics - Correct 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 - Correct Answer 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.
What does the lien do? - Correct 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 - Correct 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) - Correct 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 - Correct Answer Condominium; owner owns his living unit & an undivided interest in the
common elements of the community. Each owner owns a % of the common elements, which consist of
everything except the living units.
third type - Correct Answer Cooperative; person owns stock or membership; holds a proprietary lease
or occupancy agreement for his living unit
, Proprietary lease or occupancy agreement - Correct 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: -
Correct Answer Master or umbrella associations: consists of more than 1 residential community
association.
Second type - Correct Answer Mixed-use development-consists of a mixture of residential &
commercial &/or industrial uses grouped together.
Third type - Correct 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 - Correct Answer Federal, state & local statues,
regulations, & case law
second source - Correct Answer legal documents unique to the community association that bind the
association & its owners
third source - Correct Answer lender requirements; requirements set by secondary institutions (ex;
FHA, Fannie Mae)
fourth source - Correct Answer standards set by professional bodies; ex: auditing standards set the
American Institute of CPAs
Types of Federal Laws applying to community associations - Correct Answer Equal employment
opportunity commission (EEOC); federal govt prohibits discrimination against otherwise qualified people
in hiring, promotion, dismissal, based on specific characteristics like race & ethnicity, age, color, gender,
religion
second federal law - Correct Answer Fair Debt Collection Practices act: protect debtors from
unscrupulous debt collects & to impose a consistent & fair method to collect debts.
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