FREE CMCA MCQ Questions and Answers Flashcards

Which of the following best describes the duty of care owed by HOA board members?

Answer: Acting with the care an ordinarily prudent person would use in a similar position under similar circumstances

The duty of care requires board members to act with the diligence, attention, and skill that a reasonably prudent person would exercise when managing the affairs of a nonprofit organization.

A community association's architectural review committee primarily serves to:

Answer: Review owner improvement requests to ensure they comply with architectural guidelines and community aesthetic standards

The architectural review committee reviews homeowner applications for exterior modifications, improvements, and new construction to ensure compliance with the association's architectural guidelines and CC&Rs.

Transition documents provided by the developer at turnover typically include:

Answer: Governing documents, financial records, reserve study, insurance policies, maintenance records, vendor contracts, and as-built plans

At turnover, the developer must provide a comprehensive package of association records so the incoming owner-controlled board can understand the community's financial, physical, and legal condition.

An association manager notices that a homeowner has installed a satellite dish on the exterior of their unit. The manager should:

Answer: Review the CC&Rs and applicable federal OTARD rules before taking any enforcement action

The FCC's Over-the-Air Reception Devices rule limits an association's ability to restrict satellite dishes on areas within the exclusive use of the owner, so the manager must review both the CC&Rs and the OTARD rule before proceeding.

A meeting packet provided to board members before a board meeting should typically include:

Answer: The agenda, previous meeting minutes for approval, financial reports, management report, and supporting materials for action items

A complete pre-meeting packet gives board members the information they need to make informed decisions, fulfilling their duty of care by ensuring they are adequately prepared before voting.

In community association management, estoppel certificates are most commonly used:

Answer: To certify the status of assessments owed on a unit at the time of a real estate sale or refinancing

An estoppel certificate issued by the association at the time of a property sale certifies the current status of assessments, any outstanding violations, and other financial obligations, binding the association to those representations.