Property Management & Condominium Law Flashcards

A condominium's reserve study indicates the roof has a remaining useful life of 5 years and replacement will cost $500,000. The association has only $50,000 reserved. This is called:

Answer: Underfunded reserves

When accumulated reserves are substantially less than the projected cost of future capital repairs, the association is considered underfunded, which may require a special assessment or loan.

Which type of association meeting requires the largest quorum threshold and the approval of a supermajority of unit owners?

Answer: Amendment to the Declaration of Condominium

Amendments to the Declaration of Condominium typically require approval of 75% or more of unit owners and often require mortgagee approval, making it the most stringent voting requirement.

A property manager discovers a board member awarded a maintenance contract to his brother's company without disclosure. This violates which governance principle?

Answer: Conflict of interest policy

Awarding contracts to related parties without disclosure and recusal constitutes a conflict of interest, which violates the board member's fiduciary duty of loyalty to the association.

When a condominium association adopts a rule prohibiting satellite dishes, it must comply with which federal regulation?

Answer: FCC's OTARD Rule (Over-the-Air Reception Devices)

The FCC's OTARD Rule generally prohibits associations from restricting satellite dishes under one meter in diameter that are within an owner's exclusive use area.

A unit owner waters down a special assessment claim by arguing that the repair benefited only a few units, not all owners equally. Under most condo statutes, special assessments are typically allocated by:

Answer: Each unit's percentage interest in the common elements

Special assessments, like regular assessments, are typically allocated in proportion to each unit's percentage ownership interest in the common elements as defined in the Declaration.

Which document contains the operational rules for day-to-day governance of a condominium association, including meeting procedures and officer duties?

Answer: Bylaws

Bylaws govern the internal operations of the association, including how meetings are conducted, officer roles and responsibilities, board elections, and quorum requirements.

Under most state laws, unit owners have the right to inspect which association records without showing a specific legal need?

Answer: Financial statements, meeting minutes, and governing documents

State condominium statutes broadly grant unit owners the right to inspect financial records, meeting minutes, and governing documents, while protecting privileged attorney communications and personnel files.