Exam (elaborations)
M100 | 94 Actual Questions and Answers with Complete Solutions 100% correct
- Course
- Institution
M100 | 94 Actual Questions and Answers with Complete Solutions 100% correct
[Show more]
Content preview
M100 | 94 Actual Questions and Answerswith Complete Solutions 100% correct
Community Association - ANSWER a legal entity in which the owners enjoy the
PROTECTION, ENHANCEMENT, MAINTENANCE and PRESERVATION of their homes
and property.
3 Defining Characteristics of a Community Association - ANSWER 1.
Membership in the community is MANDATORY and automatic for all owners.
2. Certain association governing documents bind the owners and the association
to each other through mandated actions.
3. Mandatory lien-based assessments (maintenance fees) are levied on each
owner in order to operate and maintain the community association.
Lien - ANSWER a 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.
>Placing a lien on an owner's property protects the community association's
interest. It encourages payment of the debt.
Purpose of a Community Association - ANSWER to provide for the
COMMUNITY, BUSINESS, and GOVERNANCE aspects of the association.
>This 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.
,3 Basic Types of Community Associations - ANSWER 1. Planned Community -
An owner owns his lot/unit and the community owns common areas.
2. Condominium - Individual owns his living unit and owns an undivided interest in
the common elements.
3. Cooperative or Stock Cooperative - Individual owns stock or membership in the
cooperative and owns a proprietary lease or occupancy agreement for his living
unit.
>A proprietary lease or occupancy agreement defines the member or
stockholder's rights and obligations in relation to the living unit. For most
cooperatives, the community association owns all of the real estate as a not-for
profit corporation.
3 Types of Residential Community Associations that can exist by themselves or can
be grouped in CLUSTERS called: - ANSWER 1. Master or Umbrella Associations -
consists of more than one residential community associations.
2. Mixed-Use Development - consists of a mixture of residential and commercial
and/or industrial uses grouped together. Their marketing slogan is often "live,
work, play."
3. "55 and Older" Communities - must have one person who is 55 years of age or
older living in at least 80% of its occupied units.
Sources of Legal Obligations of a Community Association - ANSWER -Federal,
state and local statutes, regulations, and case law (court decisions).
-Legal documents unique to the community association that bind the association
and its owners.
-Lender requirements - for example, requirements set by secondary mortgage
institutions (FHA, Fannie Mac, Freddie Mae, etc.)
-Standards set by professional bodies - for example, auditing standards set by the
American Institute of Certified Public Accountants.
,Additional Legal Obligations of Community Associations - ANSWER -Equal
Employment Opportunity Commission (EEOC) - protects against discrimination.
-Fair Debt Collection Practices Act (FDCPA) - protects debtors from unscrupulous
debt collectors and to impose a consistent and fair method to collect debts.
-Fair Labor and Standards Act (FSLA) - dictates standards for the basic minimum
wage and overtime pay.
-Family and Medical Leave Act (FMLA) - requires employers of 50 or more
employees to provide up to 12 weeks of unpaid, job-protected leave to eligible
employees for the birth or adoption of a child or serious illness.
-Federal Insurance Contributions Act (FICA) - requires employers and employees
to make matching contributions to social security.
-Occupational Safety and Health Act (OSHA) - prevents injuries.
-Soldiers' and Sailors' Civil Relief Act of 1940 - delays civil court actions.
Additional legal Obligations of Community Associations cont. - ANSWER -US
Bankruptcy Code - helps honest people and business find a way to pay their debt
or get a fresh start.
-Federal Communications Commission (FCC) - overrides a community association
deed restriction that bans satellite dishes and antennae from property that is
exclusively used, controlled or owned by the resident.
-Fair Housing Act - prohibits discrimination in the sale, rental, financing insuring
and other housing related services.
3 Types of State Statutes - ANSWER 1. General State Statutes - applies to
community associations, as well as to other types of organizations (Regular,
corporate or not-for-profit).
, 2. Specific State Statutes - applies only to one or more types of community
associations. The specific state statutes take precedence.
3. Uniform State Statutes - the national conference of commissioners on uniform
state laws has attempted to standardize specific state statutes like: Uniform
Condominium Act, Uniform Planned Communities Act, Model Real Estate
Cooperative Act, Uniform Common Interest Act.
Governing Documents - ANSWER to provide for the legal structure and
operation of the community.
>Define the rights and obligations of both the community association and its
owners.
>Create a binding relationship between each owner and the community
association.
>Establish the mechanism for governing and funding the community association's
operations including the establishment of the automatic lien.
>Set forth rules and restrictions for the: protection of both owners and the
community, enhancement of property values and promotion of harmonious living.
General Hierarchy of Authority for Governing Documents - ANSWER -Recorded
map, plat, or plan (to show precise location of units, lots, and/or common area.
-Declaration, CC&R's, Master Deed
-Proprietary lease or occupancy agreement
-Articles of Incorporation (if incorporated)
-By-Laws
-Board Resolutions (cannot conflict with documents above it in the hierarchy.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudySet. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now