CMCA CMCA - Certified Manager of Community Associations Assessments and Collections Questions and Answers 3

Question 1

An association's assessment becomes a lien on the property on what date in most governing documents?

Accepted Answer

The date the assessment is due and unpaid

Answer

The date the lien is recorded with the county

Answer

The date the board passes a resolution

Answer

The date the owner is sent a collection letter

Question 2

Which statement best describes the business judgment rule as applied to an association's collection decisions?

Accepted Answer

Courts will not second-guess a board's collection decisions made in good faith, with adequate information, and in the association's best interest

Answer

The board must always hire an attorney before pursuing any collection action

Answer

Boards are personally liable for every uncollected assessment

Answer

Collection decisions require a unanimous board vote

Question 3

In community association collections, acceleration means:

Accepted Answer

Declaring the entire unpaid balance due immediately upon default

Answer

Speeding up the foreclosure sale date

Answer

Increasing the interest rate charged on past-due amounts

Answer

Moving the account to an outside collection agency faster

Question 4

Which federal law most directly affects how community associations communicate with homeowners about delinquent assessments when a third-party collection agency is involved?

Accepted Answer

The Fair Debt Collection Practices Act

Answer

The Fair Credit Reporting Act

Answer

The Americans with Disabilities Act

Answer

The Real Estate Settlement Procedures Act

Question 5

What is a super lien in the context of community association collections?

Accepted Answer

A statutory lien giving the association priority over a first mortgage for a limited amount of unpaid assessments

Answer

A lien that supersedes all other debts regardless of state law

Answer

A federal government lien that takes precedence over all association liens

Answer

A lien filed by the association attorney that outranks municipal tax liens

Question 6

What does it mean when an association writes off a delinquent account as a bad debt?

Accepted Answer

The association removes the balance from active receivables for accounting purposes but may still pursue collection

Answer

The association forgives the debt and cannot collect it in the future

Answer

The board member who approved the account is personally liable

Answer

The owner receives a tax credit for the written-off amount