M100 COMMUNITY ASSOCIATION MANAGEMENT Exam Questions with correct Answers 2024

M100 Community AssociationManagementExam Questions with correct VerifiedAnswers (Latest Update2024)Each of the following are key characteristics of community associations EXCEPT:
a. Mandatory lien-based economic charges or assessments are levied on eachowner inorder 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. - Answer- c. A requirement of community association ownership is serving on theboardof 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. True or False. The primary purpose of a community association is to provide for thegovernance, business, and communal aspects of the association. - Answer- TrueProviding for the governance, business, and communal aspects of the associationisachieved by administering, maintaining, and enhancing a residential real estatedevelopment, and through the establishment of a system of property rights, bindingcovenants 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 - Answer- b. Townhouse
While many community associations are indeed townhouse communities, not all suchdevelopments are necessarily associations. A community association is definedinterms 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 - Answer- d. general resolution
General resolutions involve routine events such as adoption of the annual budget. True or false. The purpose of a community association's governing documents istoprovide for the legal structure and operation of the community. - Answer- TrueThe governing documents define the rights and obligations of both the communityassociation and its owners, create a binding relationship between each owner andthecommunity association, and establish the mechanisms for governing and fundingthecommunity 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. - Answer- False
As a general rule, documents lower in the hierarchy of authority cannot conflict withor
change the terms of those above them. The recorded map, plat, or plan is abovethebylaws in the hierarchy, and therefore would prevail in such a conflict. Complete the following sentence: A __________ state statute is one that appliesonlytoone or more types of community associations. a. general
b. complex
c. specific
d. uniform - Answer- c. specific
A specific state statute is one that applies only to one or more types of communityassociations. For example, most states have a condominium act which provides for theestablishment and operation of condominiums as legal entities. These acts vary interms of their complexity—the simplest ones just allow for the creation of condominiums. True or false. A proprietary lease or occupancy agreement in a cooperative definesthemember or stockholder's rights and obligations in relation to the living unit. - Answer- True
In a cooperative, the proprietary lease or occupancy agreement serves generallythesame 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, definesthe term of the lease and the rent that is payable by the stockholder, and establishesthe powers and obligations of the cooperative's board of directors, including assessment
rights.
Complete the following sentence: The __________ bring the community associationinto existence, define its basic purposes and powers, and indicate whether stockwill beissued. a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation - Answer- d. articles of incorporation
A community association's corporate structure is established when a developer setsupthe association. The developer files articles of incorporation—sometimes calledacorporate charter—with the appropriate state corporation agency. True or False. The public offering statement is a governing document, as it oftendistributed along with the governing documents. - Answer- False
The public offering statement is not a governing document; instead, it is simply adisclosure statement that provides information on the community association toprospective buyers. Each of the following legal sources specify managem