CCS Property Management & Condominium Law 3

Question 1

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:

Accepted Answer

Underfunded reserves

Answer

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.

Question 2

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

Accepted Answer

Amendment to the Declaration of Condominium

Answer

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.

Question 3

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

Accepted Answer

Conflict of interest policy

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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:

Accepted Answer

Each unit's percentage interest in the common elements

Answer

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.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Property Management & Condominium Law 3