CCS Condominium Document Review & Due Diligence 1

Question 1

What is the primary governing document of a condominium association that is recorded with the local government to legally establish the condominium?

Accepted Answer

Declaration of Condominium

Answer

The Declaration of Condominium (also called the Master Deed) is the foundational legal document recorded with the county or municipality that creates the condominium and defines ownership rights.

Question 2

Which document in a condominium's governing package establishes the procedures for electing the board of directors and conducting association meetings?

Accepted Answer

Bylaws

Answer

Bylaws govern the internal operations of the association, including election procedures, meeting requirements, quorum rules, and board responsibilities.

Question 3

What is the primary purpose of conducting a document review during condominium due diligence?

Accepted Answer

To identify potential risks, obligations, and restrictions before purchase

Answer

Document review during due diligence helps buyers identify financial, legal, or operational risks associated with the condominium before completing the purchase.

Question 4

Which of the following would typically be found in a condominium's Rules and Regulations but NOT in the Declaration?

Accepted Answer

Pet weight limits and breed restrictions

Answer

Rules and Regulations address day-to-day operational policies such as pet restrictions, parking, and noise, whereas the Declaration covers fundamental legal ownership structure.

Question 5

What is a 'resale package' or 'resale certificate' in a condominium transaction?

Accepted Answer

A package of association documents and financial information provided to prospective buyers

Answer

A resale package includes the association's governing documents, financial statements, meeting minutes, current budget, and other legally required information disclosed to buyers.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Condominium Document Review & Due Diligence 1