CMCA - Certified Manager of Community Associations Assessments and Collections Questions and Answers Flashcards

A unit is sold and the buyer's title company asks for the amount owed to the association. What document does the manager usually provide?

Answer: Estoppel or resale certificate showing the account status

An estoppel or resale certificate states the assessments and charges due so they can be paid at closing.

Which practice best reduces the chance that one employee could steal assessment payments?

Answer: Separating the duties of receiving, depositing, and recording payments

Separating duties is a core internal control that prevents and exposes misuse of funds.

An owner says they will withhold assessments until the board fixes a roof leak. What is the general legal position in most associations?

Answer: Assessment obligations are usually independent, so the owner must still pay

Most governing documents and courts treat the duty to pay as independent of the association's performance.

When an owner makes a partial payment on a delinquent account, how is it applied?

Answer: In the order set by the collection policy and any state statute

Many states set the order in which payments are applied, often assessments before fees and fines.

What is a typical first step in a collection policy once an assessment becomes past due?

Answer: Sending a courtesy reminder or late notice to the owner

Collection policies usually begin with a friendly reminder before escalating to demand letters and legal action.

Why might a board decide against foreclosing on a unit with a small delinquent balance?

Answer: Legal costs and state limits may outweigh recovery, and some states set minimum thresholds

Boards weigh cost against recovery, and some states bar foreclosure below set dollar amounts or time periods.

Where does the board get its authority to levy regular assessments?

Answer: The governing documents and applicable state statutes

The declaration, bylaws, and state law grant and limit the board's power to assess owners.