Ethics and Professional Conduct Flashcards

A new CMCA takes over management of a community and discovers the prior manager left incomplete records. What is the ethical obligation regarding these records?

Answer: Document the gaps, attempt to reconstruct records from available sources, and notify the board of deficiencies

The incoming manager must document what records are missing, attempt reconstruction where possible, and promptly inform the board so the association can protect its legal and financial interests.

Under professional ethics standards, when is it acceptable for a CMCA to act on a matter without board direction?

Answer: Only in genuine emergencies where delay would cause immediate harm and board approval cannot be obtained in time

Independent action without board authorization is justified only in true emergencies where delay would cause imminent harm and timely board approval is impossible; all other actions require authorization.

A homeowner alleges that the manager discriminated against them in rule enforcement based on national origin. What is the CMCA's first ethical and legal obligation?

Answer: Take the allegation seriously, cease the potentially discriminatory practice, and consult legal counsel immediately

Fair housing laws prohibit discriminatory enforcement; the manager must treat the allegation seriously, stop any potentially unlawful practice, and immediately involve legal counsel.

A CMCA is asked by the board to waive late fees for a board member's account while enforcing them for all other owners. What ethical principle is at stake?

Answer: Equal treatment and the prohibition against preferential treatment for board members

Waiving fees exclusively for board members violates the principle of equal treatment and can expose the association to legal claims of selective enforcement and self-dealing.

Which of the following is the most accurate description of 'conflict of interest' as it applies to CMCA ethics?

Answer: A situation where a personal or financial interest could improperly influence the manager's professional judgment or duties

A conflict of interest occurs when personal or financial interests have the potential to impair the manager's objectivity or undivided loyalty to the association.

A board votes to use reserve funds for operating expenses without a properly adopted reserve study or membership approval as required by state law. What should the CMCA do?

Answer: Advise the board of the legal requirement and decline to execute the transfer until proper procedures are followed

Transferring reserve funds in violation of state law is impermissible; the ethical manager must advise the board of the legal constraint and withhold action until proper authorization is obtained.

How does the CAMICB address a CMCA designee who is found to have violated the Code of Professional Ethics?

Answer: May impose sanctions including reprimand, suspension, or revocation of the CMCA designation

CAMICB has authority to discipline designees who violate the Code of Professional Ethics, with sanctions ranging from formal reprimand to permanent revocation of the CMCA designation.