CCS Property Management & Condominium Law 2

Question 1

Under the Condominium Act, what is the primary legal document that creates a condominium and must be recorded with the county?

Accepted Answer

Declaration of Condominium

Answer

The Declaration of Condominium (also called Master Deed) is the foundational legal document that legally creates the condominium and must be recorded in the public records of the county where the property is located.

Question 2

A condominium unit owner refuses to pay a special assessment levied for roof replacement. What is the association's strongest legal remedy?

Accepted Answer

File a lien against the unit

Answer

Most state condominium acts authorize the association to place a lien on the unit for unpaid assessments, which can ultimately lead to foreclosure if the debt remains unsatisfied.

Question 3

Which fiduciary duty requires a condo board member to act in the best interest of all unit owners rather than their personal interest?

Accepted Answer

Duty of Loyalty

Answer

The duty of loyalty requires board members to subordinate personal interests to the collective interests of all unit owners when making decisions on behalf of the association.

Question 4

A prospective buyer requests condominium documents under a state resale disclosure statute. The seller typically has how many days to provide these materials?

Accepted Answer

10 days

Answer

Most state statutes require sellers to provide condominium documents (declaration, bylaws, financials, meeting minutes) within 10 days of a written request, though this varies by jurisdiction.

Question 5

The 'business judgment rule' protects condo board members from personal liability when they:

Accepted Answer

Act in good faith, within their authority, and on an informed basis

Answer

The business judgment rule shields directors from liability for decisions made in good faith, with due care, and within the scope of their authority, even if those decisions turn out to be wrong.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Property Management & Condominium Law 2