CMCA Knowledge 5 — Questions and Answers
Question 1: An owner requests to inspect the association's financial records. Generally, the owner's right to inspect these records is:
- Discretionary — the board may deny any request it deems disruptive
- A right established by state statute and/or the governing documents (Correct answer)
- Limited to owners who are current on all assessments
- Available only through a formal discovery process in litigation
Correct 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.
Question 2: Which type of community association governance structure has unit owners holding fee simple title to their individual units?
- Cooperative (co-op)
- Condominium
- Planned unit development (PUD) (Correct answer)
- Timeshare
Correct 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.
Question 3: What is the purpose of proxy voting in community association owner meetings?
- To allow the board to vote on behalf of delinquent owners
- To permit an absent owner to authorize another person to vote on their behalf (Correct answer)
- To give the property manager voting rights at annual meetings
- To count non-responding owners as affirmative votes
Correct 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.
Question 4: When a board adopts a rule without a proper vote or quorum, the action is typically considered:
- Voidable only if an owner files a complaint within 30 days
- Void or ultra vires, meaning outside the board's authority (Correct answer)
- Valid under the business judgment rule if the rule is reasonable
- Automatically ratified at the next properly noticed meeting
Correct 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.
Question 5: A community association manager who learns of a potential environmental hazard on the property (e.g., asbestos) should first:
- Personally supervise removal to save costs
- Immediately notify the board so it can engage qualified professionals (Correct answer)
- Wait until the next scheduled board meeting to raise the issue
- Disclose the hazard only to prospective buyers, not current owners
Correct 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.
Question 6: What is the significance of recording governing documents (declaration, plat) with the county recorder?
- It makes the documents enforceable only against future purchasers, not original owners
- It provides constructive notice to all parties and makes the restrictions run with the land (Correct answer)
- It grants the association the power to levy taxes like a municipality
- Recording is optional — unrecorded documents are equally enforceable
Correct 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.
Question 7: Which of the following best describes the role of a community association manager relative to the board of directors?
- The manager sets policy and the board implements it operationally
- The manager implements board policy and provides professional guidance, but the board retains decision-making authority (Correct answer)
- The manager and board share equal authority over all association decisions
- The manager has final authority over financial decisions to protect the association
Correct 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.
CMCA Knowledge 5
An owner requests to inspect the association's financial records.
Generally, the owner's right to inspect these records is: