FREE CMCA MCQ Questions and Answers Flashcards

A homeowner asks the manager to waive a late fee. Under typical governing documents, who has authority to approve the waiver?

Answer: The board of directors or a delegate under board-adopted policy

Fee waivers are a board decision unless the board has adopted a written policy delegating that authority to the manager.

Which document generally has the highest authority in a community association's governing-document hierarchy?

Answer: Declaration (CC&Rs)

After federal, state, and local law, the recorded declaration ranks above the articles, bylaws, and rules.

A board wants to discuss pending litigation with counsel. What is the most appropriate setting?

Answer: An executive session closed to members

Litigation, personnel, and delinquencies are usually discussed in executive session to protect privileged and confidential information.

Which reserve study level involves a full component inventory and a site inspection with no prior study as a base?

Answer: Level I – Full study

A Level I full reserve study builds the component inventory, condition assessment, life and cost estimates, and funding plan from scratch.

An association's insurance policy pays claims to the association, which then repairs the common elements. This coverage is best described as:

Answer: Property insurance

Property insurance covers physical loss or damage to buildings and common elements the association must maintain.

When should the manager give the board the monthly financial statements?

Answer: Regularly, usually monthly or before each board meeting

Boards need regular financial reports, usually monthly, to meet their fiduciary duty of oversight.

A vendor contract has an automatic renewal clause. What is the manager's best practice?

Answer: Track the notice deadline and present renewal options to the board in advance

Calendaring notice deadlines keeps the board in control of whether to renew, rebid, or renegotiate.