CMCA CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers 3

Question 1

An executive session of a board meeting is appropriate for discussing:

Accepted Answer

Pending litigation, individual homeowner hearings, and employee personnel matters

Answer

Executive sessions are reserved for sensitive matters where confidentiality is essential, including pending or threatened litigation, individual member disciplinary hearings, and employee matters.

Question 2

The business judgment rule protects board members from personal liability when they:

Accepted Answer

Make decisions in good faith, on an informed basis, and in what they honestly believe is the association's best interest

Answer

Courts will defer to board decisions made in good faith, with reasonable inquiry, and without personal financial interest. This is the business judgment rule and it is the primary liability shield for board members.

Question 3

A homeowner requests access to the association's financial records under state law. The manager should:

Accepted Answer

Comply with the request in accordance with state statute and governing documents, providing access to non-exempt records

Answer

State HOA statutes typically grant members the right to inspect certain association records, and the manager must comply by providing access to non-exempt records within the timeframe the law specifies.

Question 4

What is the primary legal purpose of recording the association's CC&Rs with the county recorder?

Accepted Answer

To provide constructive notice to all future property owners that the restrictions exist and run with the land

Answer

Recording CC&Rs with the county gives constructive notice to anyone who purchases property in the community that the restrictions apply, binding future owners even if they were unaware at purchase.

Question 5

An association's rules and regulations differ from its CC&Rs primarily in that rules and regulations:

Accepted Answer

Can typically be adopted and amended by the board alone without a member vote, within the authority granted by the CC&Rs

Answer

Rules and regulations are typically adopted by the board under authority granted by the CC&Rs, allowing for more flexible updates than amending the CC&Rs which usually requires a supermajority owner vote.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers 3