CMCA Community Association Documents and Governing Instruments 2 — Questions and Answers
Question 1: Which of the following best describes an 'easement' referenced in a Declaration?
- A lien placed on a delinquent owner's property
- A right to use another's property for a specific purpose (Correct answer)
- A transfer of full ownership of common area
- A tax assessment levied by the municipality
Correct answer: A right to use another's property for a specific purpose
An easement is a legal right allowing a person or entity to use another's property for a defined purpose, such as ingress/egress or utility access.
Question 2: A 'turnover' or 'transition' in a community association refers to:
- Annual audit completion
- Transfer of control from the developer to the homeowners (Correct answer)
- Changing management companies
- Replacement of all board members at once
Correct answer: Transfer of control from the developer to the homeowners
Transition is the process by which the developer relinquishes control of the association's board to homeowner-elected members once a trigger (like a percentage of units sold) is reached.
Question 3: What is the primary purpose of recorded CC&Rs in a homeowners association?
- To serve as the association's annual budget
- To establish land use restrictions and obligations that bind all current and future owners (Correct answer)
- To outline the board's meeting procedures
- To set vendor contract terms
Correct answer: To establish land use restrictions and obligations that bind all current and future owners
CC&Rs (Covenants, Conditions, and Restrictions) run with the land, binding every owner now and in the future to the stated use restrictions and obligations.
Question 4: Which governing document typically defines the boundaries of a condominium unit?
- Rules and regulations
- Board resolution
- Declaration (with attached condominium plat) (Correct answer)
- Proprietary lease
Correct answer: Declaration (with attached condominium plat)
The Declaration for a condominium, along with its recorded plat or survey, defines the precise legal boundaries of each unit and the common elements.
Question 5: A 'sunset clause' in CC&Rs most commonly means:
- Restrictions expire after a set number of years unless renewed (Correct answer)
- The association dissolves at sunset each fiscal year
- Assessment obligations end after 30 years
- The developer retains rights indefinitely
Correct answer: Restrictions expire after a set number of years unless renewed
A sunset clause sets an expiration date on certain CC&R provisions, after which they lapse unless the membership votes to extend them.
Question 6: When a prospective buyer purchases a home in an HOA, they receive a 'resale disclosure package.' What does this typically include?
- Only the association's current budget
- Governing documents, financials, meeting minutes, and disclosure of known assessments (Correct answer)
- Vendor contracts and insurance certificates only
- The developer's original marketing materials
Correct answer: Governing documents, financials, meeting minutes, and disclosure of known assessments
Resale disclosure packages give buyers the key governing documents, financial statements, pending special assessments, and other material information required by state law.
CMCA Community Association Documents and Governing Instruments 2
Which of the following best describes an 'easement' referenced in a Declaration?