CMCA MCQ 2 — Questions and Answers
Question 1: A homeowner in a planned community fails to pay assessments for six months. Under most state statutes, what is the association's strongest enforcement tool?
- File a criminal complaint
- Place a lien on the property (Correct answer)
- Evict the homeowner immediately
- Suspend all services to the unit
Correct answer: Place a lien on the property
Associations typically have statutory authority to place a lien on a delinquent owner's property, which can lead to foreclosure if unpaid.
Question 2: When preparing the annual budget for a community association, which document helps determine the amount to fund the reserve account?
- The master deed
- A reserve study (Correct answer)
- The declaration of covenants
- The management agreement
Correct answer: A reserve study
A reserve study analyzes the community's major components, their remaining useful life, and the funding needed to repair or replace them.
Question 3: A board member wants to vote on a contract that will benefit a company she owns. What governance principle applies?
- Majority rule
- Conflict of interest (Correct answer)
- Business judgment rule
- Ultra vires doctrine
Correct answer: Conflict of interest
A conflict of interest exists when a board member has a personal financial stake in a matter being decided by the board.
Question 4: Under the Fair Housing Act, which of the following is a protected class when enforcing community association rules?
- Political affiliation
- Occupation
- Familial status (Correct answer)
- Pet ownership
Correct answer: Familial status
Familial status is one of the seven protected classes under the Federal Fair Housing Act, protecting households with children under 18.
Question 5: An association's governing documents are silent on a particular issue. What is the correct order of authority to consult?
- Rules, bylaws, declaration, state law
- State law, declaration, bylaws, rules
- Declaration, bylaws, rules, state law (Correct answer)
- Bylaws, declaration, state law, rules
Correct answer: Declaration, bylaws, rules, state law
The hierarchy goes from the broadest governing document (declaration/CC&Rs) down through bylaws, rules, then state law fills any gaps.
Question 6: Which type of insurance covers the association if a visitor slips and falls on common area property?
- Directors and Officers liability
- Workers' compensation
- Commercial general liability (Correct answer)
- Property casualty insurance
Correct answer: Commercial general liability
Commercial general liability (CGL) insurance covers third-party bodily injury and property damage claims occurring on association property.
Question 7: A community manager receives a written request from an owner to inspect the association's financial records. Under most state laws, this request must be honored within:
- 5 business days
- 10 business days (Correct answer)
- 30 calendar days
- 60 calendar days
Correct answer: 10 business days
Most state statutes require associations to make financial records available to members within 10 business days of a written request.
CMCA MCQ 2
A homeowner in a planned community fails to pay assessments for six months.
Under most state statutes, what is the association's strongest enforcement tool?