Property Management Practices 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 Practices flashcards as text
Which of the following best describes 'limited common elements' in a condominium?
Answer: Common elements reserved for the exclusive use of one or more, but fewer than all, unit owners
Limited common elements (e.g., a balcony assigned to one unit) are part of the common elements but restricted to the use of specific unit owners per the declaration.
A condominium manager is preparing the annual budget and needs to fund the replacement of the roof in five years, estimated at $500,000. The correct account for these funds is the:
Answer: Reserve fund
Reserve funds are set aside from regular assessments to accumulate capital for the scheduled future replacement of major common elements.
An owner in a condominium has not paid assessments for six months. The most powerful collection tool typically available to an association is:
Answer: Filing a lien against the unit and potentially pursuing foreclosure
Assessment liens attach to the property and give the association the right to foreclose, making this the strongest enforcement mechanism for delinquent accounts.
What is the primary risk of an underfunded reserve account in a condominium association?
Answer: Large unexpected special assessments or deferred maintenance when major repairs are needed
Underfunded reserves force the association to levy large special assessments or defer critical repairs, both of which can harm property values and owner finances.
A board member has a financial interest in a vendor seeking a contract with the association. The correct action is to:
Answer: Disclose the conflict, abstain from the vote, and follow the association's conflict-of-interest policy
Conflict-of-interest policies require disclosure and abstention so that the interested board member does not influence a decision that benefits them personally.
Which of the following is a key responsibility of a condominium property manager under the management agreement?
Answer: Implementing board directives, managing vendors, collecting assessments, and maintaining records
Property managers execute the policies set by the board and are responsible for daily operations including vendor management, assessment collection, and recordkeeping.
What is the significance of the 'right of first refusal' clause sometimes found in condominium declarations?
Answer: It allows the association or other owners to purchase a unit before the owner sells to an outside third party
A right of first refusal gives the association or unit owners the opportunity to match any bona fide purchase offer before the selling owner can transfer to an outsider.