CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers Flashcards

Amending a recorded declaration typically requires:

Answer: The approval percentage of owners stated in the declaration or statute, then recording the amendment

Declaration amendments usually need a supermajority of owners as specified by the document or statute and must be recorded to be effective.

Under Robert's Rules of Order, what happens immediately after a motion is made and seconded?

Answer: The chair states the motion, opening it for debate

Once seconded, the chair restates the motion, which places it before the body for discussion before the vote.

Which document is filed with the state to create the association as a nonprofit corporation?

Answer: Articles of incorporation

Articles of incorporation are filed with the state to legally form the corporate entity.

A director who relies in good faith on a report prepared by the association's CPA or engineer is generally:

Answer: Protected, because directors may reasonably rely on qualified experts

State nonprofit laws and the business judgment rule generally let directors rely in good faith on qualified professionals.

An association failed to hold its annual meeting because a quorum was not present. A common remedy found in many bylaws or statutes is to:

Answer: Adjourn and reconvene with a reduced quorum requirement

Many bylaws and statutes allow an adjourned meeting with a lower quorum threshold so business can proceed.

A buyer relies on an association-issued estoppel or resale certificate stating no assessments are owed, but the statement was wrong. The association may be:

Answer: Bound by the certificate and unable to collect the misstated amount from the buyer

Under estoppel principles, an association is often bound by amounts it certifies to a purchaser who relies on the statement.

Which practice best reduces the risk that a fidelity loss, such as embezzlement, goes undetected?

Answer: Separating financial duties and having someone other than the check signer review monthly bank statements

Segregation of duties and independent review of bank statements are key internal controls against theft.