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

Under most state statutes, how far in advance must a homeowner be notified before a lien is filed for delinquent assessments?

Answer: 30 days

Most state statutes require at least 30 days written notice to the homeowner before the association can file a lien for unpaid assessments, giving the owner a chance to cure the delinquency.

Which collection method allows an association to intercept a delinquent owner's rental income to satisfy unpaid assessments?

Answer: Rent intercept

A rent intercept allows the association or a court-appointed receiver to collect rent directly from a tenant in a delinquent owner's unit and apply it toward unpaid assessments.

What is the primary purpose of an association's collection policy?

Answer: To establish consistent, legally compliant procedures for pursuing unpaid assessments

A collection policy establishes uniform, legally compliant procedures so that all delinquent owners are treated consistently, reducing the association's legal risk and ensuring fair enforcement.

Special assessments differ from regular assessments primarily because they are:

Answer: Levied for extraordinary or unanticipated expenses beyond the regular budget

Special assessments are one-time levies imposed to cover unexpected or extraordinary costs that exceed what the regular budget can accommodate.

A payment plan agreement between an association and a delinquent homeowner should include which essential element?

Answer: An acknowledgment of the total debt owed and clear repayment terms

A valid payment plan agreement must include the total amount owed, repayment schedule, consequences of default, and the owner's acknowledgment of the debt so both parties are protected.

When an association pursues judicial foreclosure on a delinquent unit, the process typically begins with:

Answer: Filing a complaint in court after the lien has been recorded

Judicial foreclosure begins with the association filing a complaint in the appropriate court after a lien has already been recorded, seeking a court order to sell the home to satisfy the debt.