Knowledge Flashcards

An owner requests to inspect the association's financial records. Generally, the owner's right to inspect these records is:

Answer: A right established by state statute and/or the governing documents

Most state statutes and governing documents grant owners a right to inspect association books and records, subject to reasonable notice and copying procedures.

Which type of community association governance structure has unit owners holding fee simple title to their individual units?

Answer: Planned unit development (PUD)

In a planned unit development, owners hold fee simple title to their lot and the structure on it, while sharing ownership of common areas through the HOA.

What is the purpose of proxy voting in community association owner meetings?

Answer: To permit an absent owner to authorize another person to vote on their behalf

A proxy authorizes a designated person to cast a vote on behalf of an owner who cannot attend the meeting.

When a board adopts a rule without a proper vote or quorum, the action is typically considered:

Answer: Void or ultra vires, meaning outside the board's authority

Actions taken without proper authority or procedure are considered void or ultra vires and cannot be enforced.

A community association manager who learns of a potential environmental hazard on the property (e.g., asbestos) should first:

Answer: Immediately notify the board so it can engage qualified professionals

Environmental hazards require prompt escalation to the board so qualified licensed professionals can assess and remediate the situation.

What is the significance of recording governing documents (declaration, plat) with the county recorder?

Answer: It provides constructive notice to all parties and makes the restrictions run with the land

Recording provides constructive notice so that all future purchasers are bound by the restrictions, which 'run with the land' regardless of whether they read the documents.

Which of the following best describes the role of a community association manager relative to the board of directors?

Answer: The manager implements board policy and provides professional guidance, but the board retains decision-making authority

The manager is a professional advisor and implementer — the board governs and makes policy decisions, while the manager provides expertise and carries out directives.