Property Management & Condominium Law Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Management & Condominium Law flashcards as text
A developer selling condominium units is required under the Interstate Land Sales Full Disclosure Act (ILSFDA) to provide buyers with a:
Answer: Property Report before signing any purchase contract
The ILSFDA requires developers selling certain condominiums across state lines to provide a HUD-issued Property Report to purchasers before any binding contract is signed.
Which governance structure gives unit owners the most direct control over daily association operations?
Answer: Self-managed association with elected volunteer board
A self-managed association where the elected board directly handles all operations gives unit owners the most direct control, though it requires more volunteer time and expertise.
An association's management agreement is typically limited in duration to protect unit owners from long-term lock-in. Standard management contracts are commonly set for:
Answer: One year with renewal options
Management agreements are typically structured for one-year terms with renewal options and cancellation provisions, balancing management company stability with the association's flexibility.
Which insurance coverage protects the condo association specifically against claims of director misconduct, errors in judgment, or breach of fiduciary duty?
Answer: Directors and Officers (D&O) Liability Insurance
Directors and Officers (D&O) insurance protects board members from personal financial liability arising from alleged wrongful acts, errors, or omissions in their capacity as association directors.
A unit owner wants to rent their unit but the association bylaws require board approval of all tenants. The board can LEGALLY reject a tenant based on:
Answer: Criminal history showing conviction for property damage
Boards may reject tenants for non-discriminatory reasons such as documented criminal history involving property crimes, but cannot reject based on protected classes under the Fair Housing Act.
During a board meeting, a unit owner demands to speak on every agenda item for unlimited time. The board chair can legally:
Answer: Impose reasonable time limits on owner comments under the bylaws
Boards have authority under their bylaws and Robert's Rules of Order to set and enforce reasonable time limits on owner comments during open forum portions of meetings.
The 'transition' period in a newly developed condominium refers to:
Answer: The transfer of association control from the developer to the unit owners
Transition is the legally mandated process by which the developer relinquishes control of the homeowners association to the elected unit owner board, typically triggered when a certain percentage of units are sold.