- Quorum requirements conflicts are resolved by:
a. state statute.
b. the board of directors.
c. a vote of those present at a meeting.
d. appointment of a person as a proxy.
A
- Fidelity insurance provides coverage to ensure that the:
a. board will meet its fiduciary obligations.
b. manager will faithfully follow all document provisions.
c. deductible in the association’s insurance policies is reimbursed.
d. association will be covered for shortfalls in the reserve accounts.
e. association will recover any funds lost through employee dishonesty.
E
- Which type of management is the process of operating, maintaining, repairing, and replacing common property?
a. Human Resources
b. Facilities
c. Financial
d. Risk
B
- The higher a document’s place in the hierarchy, the:
a. harder it is to implement.
b. greater its power with the board.
c. more it is regulated legally.
d. greater its legal weight in a court of law.
D
- Based on which type of requirements would you choose a contractor over the association to complete work?
a. Low urgency, costs adequate tools available
b. High urgency, low supervision and training possibly needed
c. Requires supervision, expertise required and low urgency
d. Low Costs, high urgency and borrowed tools
C
- Who is required to be present for an annual association membership meeting to conduct business?
a. The treasurer and the secretary
b. A quorum of the board of directors
c. All members of the board of directors
d. A quorum of the members
D
Which of the following would a condominium unit member’s personal insurance policy cover when it is the
primary insurance policy?
a. Wind damage to the roof of the member’s unit.
b. Bodily injury due to a slip and fall in the common area in front of the member’s unit.
c. Bodily injury due to the association using the member’s automobile.
d. Bodily injury due to a slip and fall within a member’s unit.
e. Fire damage to the association’s unimproved common walls.
D
- Community association governing documents and state statutes may require who to be involved in preparing
annual reports?
a. A CPA
b. The owners
c. An ad hoc committee
d. The management company
A
- What is a typical management control used to identify physical assets?
a. Checklist
b. Charts of information
c. Inventory
d. Calendar or schedule
C
- When a contractor fails to perform to the terms of the contract, which provision in the contract allows the
association to terminate?
a. Default provisions
b. Warranty provisions
c. Insurance provisions
d. Performance provisions
A
- Where can an individual find the owner and association’s maintenance responsibilities?
a. The plat map
b. The declaration
c. The state statute
d. The lease
B
- At the monthly board meeting, it is the role of the manager to do all of the following except:
a. implement the decisions of the board.
b. call for a vote on an issue.
c. keep discussions on target.
d. act as a resource to the board.
B
- All of the following are goals of maintenance in a community association except:
a. meeting the needs of the residents.
b. preserving and enhancing the common property.
c. limiting injury to residents, guests and employees.
d. increasing the association’s profits.
D
- The use of parliamentary procedure during meetings helps to ensure that:
a. quorum requirements are met.
b. only effective motions are made.
c. the board considers one item of business at a time.
d. the presiding officer is knowledgeable of meeting procedures.
C
- GAAP requires statements of _ for year-end reports for a community association.
a. cash flows
b. auditing
c. compilation
d. budgeting
A
- When developing a rule, the rule must be capable of:
a. uniform enforcement.
b. modifications and revisions.
c. limited interpretations.
d. selective enforcement.
A
- If you prepare a maintenance responsibility chart for your community association, it must be based on all of the
following except:
a. bylaws and declaration.
b. board policies.
c. state statutes.
d. human resource policy.
D
- Who is responsible for selecting a contractor?
a. Board
b. President
c. Manager
d. Owners/residents
A
- A manager must take into consideration all of the following Federal laws during the hiring process, except the:
a. Americans With Disabilities Act of 1990.
b. Immigration Reform and Control Act of 1986.
c. Housing and Urban Recovery Act of 1983.
d. Family and Medical Leave Act of 1993.
C
- Which of the following government agencies regulates employee compensation or payment?
a. FDIC
b. FICA
c. OSHA
d. None of the Above
D
- A legally binding contract should include all of the following provisions except:
a. assignability.
b. waiver.
c. insurance.
d. severability.
C
- If a physical asset is to be replaced, the basis for an association’s scheduled replacement consists of the:
a. reserve study and replacement fund budget
b. maintenance record and inspection report
c. inspection checklist and reserve fund budget
d. inspection report and analysis sheet
A
- A closed board meeting may also be referred to as a:
a. private session.
b. board session.
c. executive session.
d. committee session.
C
- All of the following are types of association meetings except:
a. special meetings.
b. annual meetings.
c. ad hoc meetings.
d. owner meetings.
C
- A useful management control to record various maintenance services and information needed in case of an
emergency is a maintenance:
a. responsibility chart.
b. analysis sheet.
c. request form.
d. contact sheet.
D
- All of the following are key contract provisions except:
a. standards of performance.
b. job site safety requirements.
c. manner in which payments are made.
d. contractor’s phone numbers.
D
- It is good practice for an association to include a disclaimer in its employee manual stating that:
a. employment is based on experience and references.
b. it is not an implied contract or promise of employment.
c. employment may include a background check.
d. the association is not responsible for any possible injuries on the job.
B
- To get needed maintenance work performed, a manager must organize the maintenance work into basic
categories and:
a. pay all invoices when presented.
b. create controls for ensuring that the work will be completed.
c. get at least five bids for work over $1,000.
d. have the board inspect the work.
B
- Upon receipt of a proper petition to call a special meeting, what should the manager do?
a. Arrange a meeting with counsel
b. Advise the board to address it at the next scheduled meeting
c. Advise the board of its duty to respond in a timely manner
d. Set up a special meeting location
C
- All of the following are basic types of contracts except:
a. service contracts.
b. repair contracts.
c. preventative maintenance contracts.
d. architecture contracts.
D
- A __ is a procedure whereby performance problems are brought to the employee’s attention and
actions are taken to correct them.
a. employment model
b. progressive discipline system
c. employee training program
d. continuous improvement program
B
- All the following are criteria to be considered when recommending a contractor to the board except:
a. understanding of what needs to be done.
b. possession the necessary qualifications to do the job.
c. price.
d. timeframe.
D
- What authority creates the right to vote by proxy?
a. Association rules and regulations
b. State statutes
c. Common law
d. Owner’s rights
B
- Periodic maintenance performed to avoid disruptive breakdowns and to prolong the useful life of a physical
asset is considered:
a. routine maintenance.
b. requested maintenance.
c. emergency services maintenance.
d. preventive maintenance.
D
- Before the commencement of any services and repairs, the association should:
a. survey the owners/tenants to see if services are necessary.
b. ask the board to suggest what to do next.
c. raise assessments to pay for work.
d. compare three or more bids.
D
- All of the following are true with respect to cumulative voting except:
a. many people perceive it as ballot box stuffing
b. it allows owners to cast all of their available votes for one person
c. the association can amend the governing documents to prohibit it
d. it helps establish a quorum
D
- Preparing for a board meeting includes an agenda with:
a. the vice-president’s report.
b. minutes of the previous meeting.
c. items to be addressed and voted on.
d. introductions of the board and manager.
C
- A __ contract covers the costs of all labor and materials.
a. cost and fees
b. repair service
c. lump sum
d. time and materials
D
- Your community association should have established dismissal policies and procedures in its:
a. performance evaluation program.
b. interview process.
c. employee handbook.
d. employment records and files.
C
- A community association wants to develop a RFP to repair or replace roofs of properties that were damaged in a
recent storm. Who should prepare the extensive specifications for the job?
a. Board members
b. Association manager
c. Third-party expert
d. Possible contractor
C
- Annual meetings are intended to provide a forum:
a. in which owners expand their power.
b. for all business, elections and reports stated.
c. for owners to decide special issues.
d. to allow the board to take action at a special meeting.
B
- Why should a written job description exist before you hire an individual for a position?
a. It will be easier to develop it with the person’s help.
b. It can be revised and changed.
c. It has to be done for legal reasons.
d. It tells the person what is expected of the position.
D
- A job description should include:
a. required duties of the position.
b. list of paydays and holidays.
c. salary and benefits.
d. reporting relationships.
A
- What is an announcement that an organization is interested in receiving proposals for a particular project?
a. Bid specification
b. Bid request
c. Bid qualifications sheet
d. Bid statement of work
B
- Who is entitled to vote when more than one person owns a unit or lot?
a. All owners are entitled and their vote is split.
b. All owners are entitled and each gets a vote.
c. Neither owner is entitled and they must have a proxy in order to vote.
d. Owners should vote in concert, with one owner designated to cast the vote.
D
- The process of reviewing the extent to which a person has met established goals and standards is called:
a. progressive planning and enhancement
b. performance evaluation
c. improvement programming
d. the ten steps of highly effective people
B
- Which of the following are detailed instructions about the products or services requested from a contractor?
a. Warranties
b. Bid specifications
c. Qualifications sheets
d. Payment bonds
B
- More and more associations are employing _ to attend annual or special meetings and to rule on all
procedural questions.
a. certified lawyers
b. professional parliamentarians
c. certified negotiators
d. professional arbitrators
B
- A cost and fees contract covers:
a. all contracted work fees after its been completed
b. a level of performance for a specific period of time and money
c. actual labor and materials costs and a percentage of profit
d. hourly rates, material costs and a percentage of the total costs
C
- What is the process of establishing performance goals and standards for an employee?
a. Employee orientation to the association
b. On-going training
c. Performance planning
d. Performance evaluation
C
- All of the following statements are correct with regards to special and annual meetings except:
a. both have to meet minimum quorum requirements set by the statute.
b. both require notice of meeting to be sent to all owners within time allotted.
c. both provide a forum for business not stated in meeting notice.
d. both allow owners to attend in person or by proxy.
C
- What is an aid commonly used for planning and budgeting the use of personnel?
a. Job description
b. Annual budget
c. Manpower reports
d. Performance planning
A
- Which of the following sets forth criteria for the annual meeting, including notice, quorum, voting, and proxy
procedures?
a. Articles of incorporation
b. Bylaws
c. State statutes
d. Parliamentary procedures
B
- What initiated regulations such as specific working conditions, safety equipment and reporting of accidents?
a. Fair Labor Standards Act
b. Child labor laws
c. Worker’s compensation laws
d. Occupational Safety and Health
D
Preparing a bid request includes which of the following:
A. Verifying References.
B. Identifying potential contractors.
C. Recommending a contractor to the board.
D. Verifying contractor insurance.
B
Legal review prior to executing a contract will assist the association in the event that:
A. A subcontractor is used.
B. A performance bond is required.
C. There is a budgetary shortfall.
D. The board has questions or concerns.
D
Rather than describing the scope of work in detail in the contract, a manager may:
A. Attach the bid specifications.
B. Call each contractor to describe the job.
C. Be on-site to oversee project content.
D. Suggest the board meet the contractor to talk about the scope of work.
A
In older condominiums, an association should have what type of contract covering mechanical equipment?
A. Time and materials
B. Specific repair
C.Service
D. Preventative maintenance
D
For which project would a board most likely want to use a consultant to help develop bid specifications?
A.Landscape renovation project
B. Repairing and/or replacing roofs
C. Painting the interior of lobbies and hallways
D. Repairing HVAC and boilers
B
In what type of contract would a waiver of lien be recommended?
A. Repair of the HVAC system
B.Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
B
In terms of compensation , a contract should state:
A. Who provides insurance coverage
B. Each employees rate to perform work
C. When and on what terms payment(s) will be made
D. Requirement for a payment bond
C
Alternative dispute resolution includes which of the following methods?
A. Mediation
B. Subrogation
C.Litigation
D.Indemnification
A
Employment contracts need not included:
A.Legal Sources
B.Interests
C.Termination
D.Notice
B
What is the best way to communicate managements expectation for an employee to complete regular and special tasks during a certain time-period?
A.Job orientation
B. Job duties
C.Establishing performance goals
D. Performance reviews
C
When staff members help to develop policies and procedures, they are more:
A. Likely to get acknowledged for their contributions.
B. Committed to their job
C. Committed to implement them
D. Likely to be satisfied with their job
C
Discipline as a part of the HR management can include:
A. Counseling the employee
B. Selecting using a progressive system
C. Terminating an under-performing employee
D. Gathering performance information from other employees
A
Which tool is mot effective for defining the employees duties?
A. Personnel Policy
B. Job Description
C. Routine performance reviews
D. State or local labor regulations
B
The purpose of a personnel manual or employee handbook is to:
A. Provide the format for job evaluations
B. Define individual job descriptions
C. Detail the programs the company offers
D. Explain he employee rights and responsibilities
D
What “duty” do the Board members and the manager have to the members?
A. Accountability
B. Loyalty
C. Service
D. Conduct
B
Which of the following would impact the operation of a newly installed entry control system?
A. Communicating the access control policy to residents
B. Identifying warranty procedures
C. Developing a capital replacement budget line item
D.Informing the associations insurance agent
A
Who has the ultimate responsibility for the care and maintenance of the common areas, facilities and physical property?
A. The board of directors
B. The association manager
C. The developer until turnover
D. The executive committee
A
In an initial letter you end to an owner who has violated one of the associations adopted rules, which of the following is included?
A. The amount of fine assessed
B. Steps to amend the rules
C. The offer to meet to hear the owners viewpoint
D. What the outcome of similar cases has been
C
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statutes and governing documents
D
The primary purpose of a community association is to:
A. Guarantee property tax benefits
B. Protect the financial health of the owners
C. Provide owners protection from municipal laws
D. Deal with governance and business
D
The Board of directors receives its authority to perform its specific duties through the:
A. Community charter
B. Governing Documents
C. Board resolutions
D. Board member job descriptions
B
In preparing the associations annual financial report, many governing documents specify:
A. Retaining a independent tax specialist.
B. Retaining an independent certified public accountant.
C. The establishment of a finance committee
D. The use of he management company’s accountant
B
Which of the following is within the authority of the Board of Directors?
A. Creating By-laws
B. Being paid for their service
C. Establishing programs
D. Amending the declaration
C
In the hierarchy of a community associations governing documents , which of the following is the highest authority?
A. Bylaws
B. Articles of Incorporation
C. Declaration
D. Mortgage lender requirements
C
When a dispute is mediated, an uninvolved third party facilitates discussion and:
A. Makes the final judgement fr both parties
B. Presents a decision which the parties are free to reject
C.Assist both parties in reaching a mutually acceptable agreement
D. Decision is binding upon both parties
C
You have a proprietary lease in XYZ development. Which of the following best describes your interest in the property?
A. A time-share interest
B. A divided interest
C. An undivided interest
D. Stock membership
D
Management conducts its tasks for the day to day operation of the association in accordance with the:
A. Minutes
B. Contract
C. Board Presidents instructions
D. Resolutions
B
A board exercises its fiduciary responsibility by:
A. Authorizing the manager to enforce rules
B. Establishing internal controls
C. Authorizing of a committee to adopt due process procedures
D. Voting to eliminate parking rules
B
Which of the following has the greatest regulatory influence on the management of a community association?
A. Federal statutes
B. Articles of incorporation
C. Specific State Statutes
D. General State Statutes
C
Which of the following types of insurance coverage is one of limited value to a community association?
A. Liability
B. Assessment fee receivable
C. Workers compensation
D. Commercial umbrella
B
Which of the following is a common management control for ensuring maintenance work is performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor’s invoice
C. A work order/response form – A, B, and D speak to elements OTHER than a control to ensure maintenance work is completed.
The primary management control tool for identifying whether the association needs to maintain a particular property element is:
A. Physical inspections
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
C. Maintenance responsibility chart along, with the governing documents, defines parameters of association maintenance responsibility.
The other answers have no bearing on necessity of maintenance or maintenance responsibility.
In what type of a contract would a waiver of lien by recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
B. Re-roofing the buildings – Large contracts involving significant material purchase and/or use of sub-contractors commonly include lien waivers and should be recommended to the board.
A, C, and D typically do not include significant material purchases or the use of sub-contractors so a waiver of lien is not necessary.
What does “Co-Insurance” obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners
B. Maintain certain limits of insurance – Co-insurance seeks to the limits of insurance in place at the time of a loss and speaks to insurance obligation for the parties involved in the claim.
When an association contracts out all of its services and has no employees, it is a best business practice to:
A. Negotiate contracts within the bidding process.
B. Purchase employment practices liability insurance.
C. Assume the contractors carry their own insurance coverage.
D. Increase the coverage under the D&O insurance policy.
A. Negotiate contracts within the bidding process.
If an owner fails to receive notice of a meeting, the association is not responsible if the owner:
A. Did not notify association of their current address.
B. Does not usually attend the meetings.
C. Already signed the petition to call the meeting.
D. Shares title with multiple owners.
A. Did not notify association of their current address. It is the owner’s responsibility to provide current contact information to Management.
What is the primary source of requirements when developing the association’s annual maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
A. Governing documents
The best reasoning for recommending the modified accrual accounting method is that, compared to cash accounting, it:
A. Will make future audit work more accurate.
B. More accurately reflects the association’s financial condition.
C. Is more easily understood by board members.
D. Can be accomplishment more quickly.
B. More accurately reflects the association’s financial condition. Under the modified accrual basis, also sometimes referred to as modified cash basis, some accounts, such as assessment income, are maintained on the accrual basis and other accounts, such as interest or other miscellaneous income accounts, and some expenses, such as miscellaneous repairs, are maintained on a cash basis. The accrual of major expenses in particular, such as a contract for landscaping, trash removal, etc., regardless of non-receipt invoices, gives the read a much more accurate depiction of the association’s financial standing, as the accruals serve to alert the reader to recognition of obligations that the association must meet.
TRUE OR FALSE:
The basic authority in a community association lies with the developer.
FALSE
The board of directors in a community association has a _____________ to act in the best interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum
b. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statues and governing documents
D. Applicable statues and governing documents. Rules cannot conflict with statues and governing documents.
In an initial letter you send to an owner who has violated one of the association’s adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
C. The offer to meet to hear the owner’s viewpoint.
D. What the outcome of similar cases has been.
C. The offer to meet to hear the owner’s viewpoint. Best way to get compliance is to let owner be heard and explain rule to the owner. Knowledge Tested: Successful rule enforcement Procedures.
If the governing documents and laws present conflicting notice periods, follow:
a. The bylaws
b. State laws
c. Your attorney’s advice
d. Declarations
b. State laws –
Which of the following is a duty of a manager attending a board meeting?
a. Call the meeting to order.
b. Establish the agenda.
c. Take the minutes of the meeting.
d. Be the time keeper
d. Be the time keeper –
In older condominiums, an association should have what type of contract covering mechanical equipment?
a. Time and materials
b. Specific repair
c. Service
d. Preventive maintenance
d. Preventive maintenance – Preventive maintenance contracts are used for such items as pool and A/C equipment, boilers and water heaters where regular service is likely to reduce the chance of expensive emergency repairs.
For which project would a board most likely want to use a consultant to help develop bid specifications?
a. Landscape renovation project
b. Repairing and/or replacing all roofs
c. Painting the interior of lobbies and hallways
d. Repairing HVAC and boilers
b. Repairing and/or replacing all roofs – An outside consultant is most likely to be used in a large, complicated project, such as replacement of all roofs in a HOA.
Which of the following has the greatest regulatory influence on the management of a community association?
a. Federal statues
b. Articles of Incorporation
c. Specific state statues
d. General state statues
c. Specific state statues – There may be specific state statues addressing regulations which effect the management of a community association.
TRUE OR FALSE:
Employees are finished with training after they receive their initial training for a job.
FALSE
Which of the following is an example of an association control system?
a. Frequent neighborhood inspections
b. Owner garage door locks
c. Telephone entry system
d. Posting police department information on building bulletin boards
a. Frequent neighborhood inspections – The key for the correct answer is “control” and the only response that speaks to an overall system of control is frequent neighborhood inspections.
.
TRUE OR FALSE:
The “business judgement rule” means that if a board has exercised reasonable business judgement in making a decision, the court will generally not consider the board negligent in its fiduciary duty.
TRUE
Which of the following community association committees typically are assigned responsibilities related to elections, nominations, and architectural standards?
a. standing committees
b. professional committees
c. ad hoc committees
d. mandatory committees
d. mandatory committees
Performance _____________ are those regular and special tasks management expects an employee to perform during a certain time period.
a. evaluation
b. goals
c. planning
d. standards
b. goals
Where would a manager find guidelines regarding the association’s responsibility for maintaining the physical assets?
a. equipment warranties
b. Real estate sales contract
c. Governing documents
d. Board resolutions
d. Board resolutions – Maintenance guidelines are established by Board action.
A work order:
a. Documents current maintenance standards.
b. Identifies what needs to be done during the year.
c. Assigns maintenance tasks.
d. Is a punch-list of maintenance needs.
c. Assigns maintenance tasks. – The purpose of the work order is to capture needed work to be done and assign the work to the appropriate party/parties.
What “duty” do the Board members and the manager have to the members?
a. Accountability
b. Loyalty
c. Service
d. Conduct
b. Loyalty – The Board Members and Manager have the Fiduciary “Duty” of Loyalty to the owners.
TRUE OR FALSE:
It’s generally a good idea to schedule a performance evaluation meetings with an employee in a public place.
FALSE
Employment contracts need NOT include:
a. Legal sources
b. Interests
c. Termination
d. Notice
b. Interests – Is not a relevant component of an employment contract.
TRUE OR FALSE:
A community association employee who supervises other staff members is automatically classified as salaried (or exempt).
TRUE
Which of the following federal laws regulate working conditions, specialized training, safety equipment, the posting of warnings related to products and work site conditions, and the reporting of accidents?
a. Fair Labor Standards Act
b. Occupational Safety and Health Act
c. Federal Insurance Contributions Act
d. Child labor laws
b. Occupational Safety and Health Act
TRUE OR FALSE:
An agenda is more than an announcement of the order of business for a meeting; it is a meeting management tool.
TRUE
Discipline as a part of the HR management can include:
a. Counseling the employee
b. Selecting using a progressive system
c. Terminating an under-performing employee
d. Gathering performance information from other employees
a. Counseling the employee – Counseling an employee and providing benchmarks to achieve (and penalties for short-falls) is part of the discipline process.
What is the primary source of requirements when developing the association’s annual maintenance budget?
a. Governing documents
b. State law
c. Annual audit
d. Reserv Study
a. Governing documents – will give notice requirements and budget cap information.
A notice of meeting should be sent in writing to board members at least ______ before meeting.
a. a year
b. 2 days
c. 3 months
d. a week
d. a week
A significant decline in the amount of investments is most likely the result of:
a. Failure to invest association funds properly.
b. Seasonal timing of expenses.
c. Expenditures out of reserve funds.
d. Failure to collect delinquent assessments.
c. Expenditures out of reserve funds – The reserve funds are set aside, usually in investments such as money market accounts and certificates of deposits, for the purpose of funding the repair or replacement of major, capital components. Therefore the appropriate use of these funds will result in a decline in the amount of investments.
The purpose of a personnel manual or employee handbook is:
a. Provide a format for job evaluations.
b. Define individual job descriptions.
c. Detail the programs the company offers.
d. Explain employee rights and responsibilities.
d. Explain employee rights and responsibilities.
Preparing a bid request includes which of the following?
a. Verifying references.
b. Identifying potential contractors.
c. Recommending a contractor to the board.
d. Verifying contractors insurance.
b. Identifying potential contractors.
Alternative dispute resolution includes which of the following methods?
a. Mediation
b. Subrogation
c. Litigation
d. Indemnification
a. Mediation
MATCH THE COMMITTEE TYPES
1. Usually include elections, nominations, and architectural standards. Required by the governing documents.
2. Established by the Board to meet some on-going need of the community.
3. Task forces that meet some specific need and are then dissolved. Established by the Board.
a. Standing
b. Mandatory
c. Parent Organization
d. Ad-hoc
1. b. Mandatory
2. a. Standing
3. d. Ad-hoc
A work order:
a. Documents current maintenance standards.
b. Identifies what needs to be done during the year.
c. Assigns maintenance tasks.
d. Is a punch-list of maintenance needs.
c. Assigns maintenance tasks.
Which of the following responsibilities relate to the governance function of a community association board of directors?
a. Decide issues of policy for the owners in the community.
b. Promote harmony through service programs and regular communication with owners.
c. Monitor financial matters for the purpose of preserving and enhancing the community.
d. Hear appeals of committee and management decisions that are protested by groups of owners.
a. Decide issues of policy for the owners in the community.
Which type of maintenance should be managed with a routine maintenance contract?
a. Replacing dead shrubs
b. Painting building hallways
c. Cutting the grass
d. Cleaning sewer lines.
c. Cutting the grass
Liability claims should be sent to the insurer:
a. Requesting a public adjuster be assigned.
b. Without admitting negligence.
c. By the Insurance Trustee.
d. Within 72 hours of the incident.
b. Without admitting negligence.
A component of building ordinance insurance coverage includes:
a. Glass damage
b. Extra demolition
c. Water damage
d. Power failure
b. Extra demolition
A community association is within its legal rights to dismiss an employee without cause or progressive discipline for which of the following reasons?
a. substance abuse on the job
b. inadequate work performance
c. insubordination
d. sexual harassment
a. substance abuse on the job
Each of the following legal sources specify management authority and responsibilities for community associations EXCEPT:
a. survey data
b. state statues
c. community association governing documents
d. court decisions
a. survey data
Directors and officers liability insurance is designed to cover claims resulting from:
a. Theft of funds by an association board member.
b. Wrongful acts of employees of the association.
c. Bodily injury of directors and officers.
d. Damage to board owned property.
b. Wrongful acts of employees of the association.
They are only covered under the D&O if the definition of “insured party” includes such employees.
Which of the following types of insurance coverage is one of limited value to a community association?
a. Liability
b. Assessment fee receivable
c. Worker’s compensation
d. Commercial umbrella
b. Assessment fee receivable
Assessment fee receivable insurance has a certain limited value to an association. Such insurance will assist in situations such as a fire destroying a home or unit and the association is unable to collect assessments from the owner. It does not provide coverage for the association if an owner refuses or fails to pay assessments.
The board exercises its fiduciary responsibility by:
a. Authorizing the manager to enforce rules.
b. Establishing internal controls.
c. Authorizing of a committee to adopt due process procedures.
d. Voting to eliminate parking rules.
b. Establishing internal controls.
Helps avoid theft. Learning Tested: Ability to define understanding of fiduciary.
.
In the hierarchy of a community association’s governing documents, which of the following is the highest authority?
a. Bylaws
b. Articles of Incorporation
c. Declaration
d. Mortgage lender requirements
c. Declaration
Hierarchy:
1. Recorded deed or map
2. Declaration or Master Deed
3. Articles of Incorporation
4. Bylaws
5. Rules and Regulations
TRUE OR FALSE:
A board of directors can legally conduct the business of the association without a quorum.
FALSE
Management conducts its tasks for the day to day operation of the association in accordance with the:
a. Minutes
b. Contract
c. Board President’s instructions
d. Resolutions
b. Contract
1. The general process by which the control and responsibilities of the governing board of an association are transferred from the developer to the persons who bought unit/lots in the association is called.
2. The date upon which owners gain control of their association.
a. audit
b. turnover
c. restoration
d. transition
1. d. transition
2. b. turnover
The primary purpose of a community association is to:
a. Guarantee property tax benefits.
b. Protect the financial health of the owners.
c. Provide owners protection from municipal laws.
d. Deal with governance and business.
d. Deal with governance and business.
When a dispute is mediated, an uninvolved third party facilitates discussion and:
a. Makes the final judgement for both parties.
b. Presents a decision which the parties are free to reject.
c. Assist both parties in reaching a mutually acceptable agreement.
d. Decision is binding upon both parties.
c. Assist both parties in reaching a mutually acceptable agreement.
Who has the ultimate responsibility for the care and maintenance of the common areas, facilities, and physical property?
a. The Board of Directors
b. The association manager
c. The developer until turnover.
d. The Executive Committee.
a. The Board of Directors
You have a proprietary lease in XYZ development. Which of the following best describes your interest in the property?
a. A time-share interest.
b. A divided interest.
c. An undivided interest.
d. Stock membership
d. Stock membership
A proprietary lease is given to the shareholder only in a Cooperative Cooperation. The shareholder receives stock membership.
TRUE OR FALSE:
The role of a professional community association manager is to make all decisions for the association and to delegate information-gathering and fact-finding support to the board of directors.
FALSE
TRUE OR FALSE
Assessment Fee Receivable insurance coverage provides coverage for the association if an owner refuses or fails to pay assessments.
FALSE
Community association employees are obligated to do each of the following EXCEPT:
a. possess the skills needed to perform assigned tasks.
b. use reasonable care in performing assigned tasks in order to protect the community’s assets and interest.
c. complete assignments in conformity to performance standards within a reasonable time frame.
d. participate in the association’s health program.
d. participate in the association’s health program.
The federal government prohibits discrimination against otherwise qualified people for each of the characteristics EXCEPT:
a. religion
b. gender
c. skill
d. race and ethnicity
c. skill
TRUE OR FALSE:
If a community association has just one part-time employee, it doesn’t need a written personnel manual or employee handbook.
FALSE
In which of the following forms of community association management is the association management by the board itself or by committees under the direction of the board?
a. management company
b. volunteer or self-management
c. association-employed manager
d. municipal management
b. volunteer or self-management
Which of the following terms regarding the process of making a motion most closely fits this definition: “to change a motion by inserting, adding, striking out, striking out and inserting, or substituting words.”
a. Take a motion from the table
b. Second a motion
c. Amend a motion
d. Table a motion
c. Amend a motion
A ___________________ is a statement of goals and objectives approved by the board that includes the yearly cycle of tasks that management should perform on the community association’s behalf:
a. management audit
b. management contract
c. management plan
d. employment agreement
c. management plan
TRUE OR FALSE:
It is ethically acceptable for a professional community association manager to arrange for a kickback for giving a contractor an association contract.
FALSE
A _____________ includes reviewing the governing documents and existing policies and procedures, the current condition of the property, owner/resident satisfaction, and fiscal operations.
a. management contract
b. management plan
c. management audit
d. employment agreement
c. management audit
In addition to meeting agenda, board members should receive each of the following supporting materials prior to a meeting EXCEPT:
a. Minutes from the last meeting
b. Financial reports
c. Community newsletter
d. Committee reports
c. Community newsletter
TRUE OR FALSE:
It is perfectly acceptable to hold a board meeting in the home of the association president.
FALSE
All board meetings must be held in a place where the homeowners/members may attend.
Which of the following is not one of the basic principals of parliamentary procedure that apply to every meeting?
a. Minority rule
b. Justice
c. Courtesy
d. Protection of Rights
a. Minority rule
Each of the following are benefits to using the resolution process to adopt rules EXCEPT:
a. Provides an oral record of all rules made.
b. Protects owners from arbitrary board actions.
c. Protects the community from charges that could result in inoperable rules.
d. Provides for consistency in making and wording rules.
d. Provides for consistency in making and wording rules.
TRUE OR FALSE
It more owners are showing up at board meetings, this could be a warning sign of a weak management?
TRUE
MATCH
1. The disciplines dealing with what is good and bad and with moral duty and obligation.
2. Requires the party acting on behalf of another to exercise the skill and care that a reasonable person would exercise under similar circumstances.
3. Applies to the delivery of products or services and to our relationships with customers, employers, vendors and colleagues.
4. Requires the fiduciary to act in the other party’s interested when administering its assets.
5. A set of rules or standards that govern the conduct of members of a profession.
6. A situation in which an individual’s duty to one leads to the disregard of a duty to another.
a. Conflict of Interest
b. Duty of Loyalty
c. Duty of Care
d. Professional ethics
e. Business ethics
f. Ethics
1. f. Ethics
2. c. Duty of Care
3. e. Business ethics
4. b. Duty of Loyalty
5. d. Professional ethics
6. a. Conflict of Interest
TRUE OR FALSE:
Personnel issues are an example of a topic that often requires an executive session and are allowable by law.
TRUE
A _______________ is a written means of voting when secrecy is desired.
a. proxy
b. residents forum
c. action item list
d. ballot
d. ballot
TRUE OR FALSE:
The primary purpose of a community association is to provide for the governance, business, and communal aspects of the associations.
TRUE
Reasons for establishing community rules and architectural guidelines include each of the following EXCEPT:
a. There is the need to create a sense of fairness and equity among residents.
b. In contemporary society, people are more likely to question and challenge authority.
c. In cases where rules have been poorly developed or engraved, the courts are ruling against community associations.
d. Fines imposed on residents who break community rules are frequently the primary source of association income.
d. Fines imposed on residents who break community rules are frequently the primary source of association income.
TRUE OR FALSE:
According to the general hierarchy of authority for operating community associations, rules and regulations take precedence over the articles of incorporation.
FALSE
Which of the following is an example of an architectural guideline?
a. pets
b. noise
c. fencing
d. parking
c. fencing
Each of the following are basic types of residential community associations EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium
b. Townhouse
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.
c. A requirement of community association ownership is serving on the board of directors.
Each of the following are sections of a resolution EXCEPT:
a. authority
b. purpose
c. scope and intent
d. self help
d. self help
TRUE OR FALSE:
Governing documents are one of the most important sources of a community’s authority to make and enforce rules.
TRUE
TRUE OR FALSE:
Using alternative dispute resolution to encourage residents to comply with rules and guidelines is more costly and time consuming than going through the court system.
FALSE
Which of the following is not one of the basic steps in a due process procedure?
a. Issue a “cease and desist” letter.
b. Issue a hearing notice if the violation does not end within the state time.
c. Hold the scheduled hearing if the violation does not end within the stated time.
d. Issue a decision before a hearing is held.
d. Issue a decision before a hearing is held.
TRUE OR FALSE:
To increase the likelihood that a court of law will uphold an association’s enforcement of architectural guidelines, the board of directors should turn a blind eye towards violations and permit unapproved architectural changes to exist.
FALSE
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
d. general resolution
TRUE OR FALSE:
The purpose of a community association’s governing documents is to provide for the legal structure and operation of the community.
TRUE
TRUE OR FALSE:
According to the general hierarchy of authority for governing documents, the bylaws would control conflict with the recorded map, plat or plan.
FALSE
The Recorded Map, plat or plan is at the TOP of the hierarchy.
A ___________________ state statue is one that applies only to one or more types of community associations.
a. general
b. complex
c. specific
d. uniform
c. specific
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 of occupancy agreement.
d. articles of incorporation
d. articles of incorporation
TRUE OR FALSE:
The public offering statement is a governing document, as it often distributed along with the governing documents.
FALSE