CMCA FREE CMCA Knowledge Questions and Answers 2 — Questions and Answers
Question 1: What does the acronym CC&Rs stand for?
- Community Contracts and Regulations
- Covenants, Conditions, and Restrictions (Correct answer)
- Common Costs and Revenues
- Community Compliance and Rules
Correct answer: Covenants, Conditions, and Restrictions
CC&Rs or Covenants, Conditions, and Restrictions are recorded deed restrictions that establish the rules and obligations binding all property owners within a community association.
CC&Rs are the most legally powerful governing document of a community association. They are recorded with the county recorder, run with the land, and can typically only be amended through a supermajority vote of the membership. They define the community's restrictions, easements, maintenance responsibilities, and the association's authority.
Question 2: Under which doctrine can a board member rely on the expertise of professionals such as attorneys, CPAs, or engineers when making decisions?
- Estoppel doctrine
- Reliance on expert advice doctrine (Correct answer)
- Respondeat superior
- Eminent domain
Correct answer: Reliance on expert advice doctrine
Board members acting in good faith may rely on the advice of qualified professionals without needing independent expertise in those areas. This reliance supports the business judgment defense.
The business judgment rule protects boards that make informed decisions including decisions based on expert professional advice. A board that consults an engineer before approving a structural repair and relies on that recommendation is acting in good faith even if the outcome is imperfect.
Question 3: An easement in community association law typically refers to:
- An assessment increase approved by the board
- A right to use another party's property for a specific purpose (Correct answer)
- An amendment to the CC&Rs
- A grant of common area ownership to an individual homeowner
Correct answer: A right to use another party's property for a specific purpose
An easement grants a limited right to use property owned by another party for a specific purpose such as utility access, drainage, or pedestrian pathways across a homeowner's lot.
Community associations frequently have easements within their properties including utility easements for power, water, and sewer, access easements across lots, and drainage easements. These are typically established in the CC&Rs or a recorded easement agreement and must be respected when approving landscaping or construction plans.
Question 4: What is the typical quorum requirement for a community association board meeting?
- All board members must be present
- A majority of the board seats (Correct answer)
- Only the president and treasurer
- One board member is sufficient
Correct answer: A majority of the board seats
Most bylaws require a majority of the board, meaning more than half the seated directors, to be present in order to constitute a quorum and transact business.
Quorum requirements ensure that decisions represent the will of the board as a whole, not a small subset of members. Without a quorum the board can discuss but cannot vote. The bylaws specify the exact quorum requirement which is typically a majority of current board members.
Question 5: A special assessment differs from the regular monthly assessment in that it is:
- A monthly fee increase approved by the board
- A one-time or limited-term charge levied to fund a specific unexpected or extraordinary expense (Correct answer)
- An assessment waived for senior citizens
- A fee charged only to non-residents
Correct answer: A one-time or limited-term charge levied to fund a specific unexpected or extraordinary expense
Special assessments are extraordinary non-recurring levies used to fund specific expenses that exceed what the regular operating budget or reserve fund can cover.
Common triggers for special assessments include major storm damage repairs, large capital improvements not covered by reserves, or significant unfunded legal costs. Governing documents often limit the amount a board can levy without a membership vote.
Question 6: The statute of limitations is relevant to community association management because it:
- Limits the number of rules a board can adopt
- Sets the deadline by which legal claims must be filed, after which the right to sue is lost (Correct answer)
- Determines the term length for board members
- Establishes the minimum reserve fund contribution
Correct answer: Sets the deadline by which legal claims must be filed, after which the right to sue is lost
The statute of limitations establishes the time window within which legal action must be taken. Claims filed after the deadline are time-barred and generally cannot be pursued in court.
Community associations must be aware of statutes of limitations for construction defects, contract disputes, debt collection, and other legal matters. Missing a deadline can permanently forfeit the association's right to seek recovery. Managers who are aware of potential claims should promptly bring them to the board's attention.
CMCA FREE CMCA Knowledge Questions and Answers 2
What does the acronym CC&Rs stand for?