CAM Study Questions Flashcards
If you were looking for maintenance easements for a community, where would you most likely find those provisions?
The Plats or CC&R’s.
Board members must do all of the following except:
* Follow the Business Judgment Rule.
* Receive a Salary for serving on the Board.
* Read NRS 116, NAC 116, their governing documents and understand to the best of their ability.
* Read their community’s Governing Documents.
Receive a Salary for serving on the Board.
After you have passed your final exam and have received your Certificate from the State of Nevada, what type of license will you normally be given?
Provisional Community Manager Certificate
Which of the following would normally correctly describe a condominium in any State?
* The owner owns stock in a corporation
* The owner owns air space.
* The owner has a divided interest in the common elements.
* The owner owns his unit from the sky to the ground.
The owner owns air space.
How many days do you have to notify the division of any changes in your address after you receive your license regardless of the type of license you hold? NAC 116A.340
* 10
* 20
* 30
* 90
10
How many days does each member of the Executive Board have after his appointment or election to certify in writing that he has read and understands the governing documents of the Association, the provisions of NRS 116 and NAC 116 – NRS 116.31034 Section 19?
* 60 Days
* 30 Days
* 45 Days
* 90 Days
90 Days
National Night Out is which of the following:
* A waste of time as this is a national organization with their own agenda.
* Is not an activity that should be considered by the Board since it does not affect their individual corporation in Nevada.
* It is a new concept that has not been proven to help with safety issues or building communities.
* It is a good time to help your common-interest communities “Build a Sense of Community and promote safety.”
It is a good time to help your common-interest communities “Build a Sense of Community and promote safety.”
In which document would you normally find lender provisions?
The CC&R’s
What would you normally find in the Articles of Incorporation?
The purpose of the Corporation.
Which of the following is the most accurate statement?
* Talking among themselves in Executive Session is the best way for a Board to stay in Safe Harbor as owners won’t know what is discussed or why the decision was made.
* Relying on the manager for legal advice will keep the board in “Safe Harbor”.
* The members of the Board will fall into “Safe Harbor” if they rely on qualified individuals to give advice and who are qualified in each specific area as required by law.
* Relying on a CPA to do the reserve study who is not “registered” will keep the Board in Safe Harbor since there are no other qualifications necessary other than shifting the authority and liability to someone else.
The members of the Board will fall into “Safe Harbor” if they rely on qualified individuals to give advice and who are qualified in each specific area as required by law.
If a common interest community is not defined as a condominium or a cooperative, what could be considered as another type of Common Interest Community?
* A Converted Building
* An Apartment
* A Planned Community
* A Commercial building
A Planned Community
How would you define a limited common element?
A component that is owned by the CIC, but one or more owners have access to or use of, but fewer than all of the owners.
If you live in a condominium, what type of interest do you have in the common elements and common expenses?
The owner owns his unit (Air space and any other area shown in the CC&R’s) and has an undivided interest in the common areas.
What is the purpose for an HOA to have landscaping? (Hint: There are 3 Answers)
o To enhance the value of the property.
o To satisfy provisions placed on the developer by the public entity.
o To have pleasing areas that break up the housing units themselves.
Welcome Letters are good forms of which type of communication?
Written
Which of the following statements is the most correct regarding communications?
* Because of the additional expense and lack of effectiveness, newsletters, welcome letters and creating web sites are not good ways to communicate with owners.
* Physical communications should be ignored in the community association industry as the way people show communications through bodily actions may not mean much.
* Being calm and smiling at someone when they are angry only makes the matter worse.
* Putting yourself “in their shoes” is always a good way to help when dealing with an upset owner.
Putting yourself “in their shoes” is always a good way to help when dealing with an upset owner.
Which statement is the most correct statement?
* The seating arrangement of members of the Board should not be considered when trying to control a troubled Board during their meetings.
* Seating arrangement can help to control troubled Board Members during meetings since some seating positions are considered “confrontational” positions.
* Sitting with their backs to the owners during a board meeting will not prove anything to owners in attendance except show that the Board Members doing so are being rude.
* Allowing owners to help make all decisions at a Board Meeting versus taking comments during the open session will allow for more owners to participate and eliminate liability for the Board.
Seating arrangement can help to control troubled Board Members during meetings since some seating positions are considered “confrontational” positions.
Which of the following would you consider to not be a critical people skill?
* Don’t make promises you can’t keep.
* Follow up on agreements
* Treat every client as you would expect to be treated.
* Finishing Statements for them since it will save time for you and the upset owner
Finishing Statements for them since it will save time for you and the upset owner.
When could a resident survey back-fire on a common-interest community?
When the Board publicly makes fun of any suggestions.
What role does the sales agent play in a new project or development
The sales agent in the developer’s office plays a critical role in building a “healthy Community” in a new common-interest community.
A Board Member can be held personally liable for all of the following except:
* Failing to keep the common area in a state of good repair.
* Failing to follow the Business Judgment Rule
* Failure to retain the services of experts to advise the nature, extent and cost of repair of defects at the project.
* Failing to go along with decisions made by a majority of the Board that are also against the law.
Failing to go along with decisions made by a majority of the Board that are also against the law.
Which of the key components of Verbal Communication is all that is “required” at an owner’s hearing?
* Successful Debate
* Listening
* Testimony
* Witness Statements
Listening
Ensuring that the Secretary of State Corporate filing is completed and mailed annually will ensure all but which one of the following:
* The Association will not lose the corporate name.
* The Association will not lose the corporate protections.
* The State of Nevada will have updated Officer information.
* The Association will have total protection against lawsuits.
The Association will have total protection against lawsuits.
A Community Manager is considered to be an employee of the common interest community if:
The Community Manager has no other clients, is paid by the common interest community and follows the directions of the Board of Directors.
In Nevada, an employee can be fired at any time without cause? True or False.
True
What is the max dollar amount that a manager can “take” as incentives annually from all vendors? NAC 116.482
$500.00 - Total of all vendors put together.
What amount needs to be reported with the renewal of the license when you have received any “gratuities” from vendors?
Any amount over $15.00
What amount does a member of the board need to report with the budget annually when he or she has received a “gratuity” from a vendor? NAC 116.480
Any amount over $15.00
If a director is given a ticket for a function that costs $125.00 to attend from a vendor, what does the director need to do with the ticket? NAC 116.480
Give the ticket back as he or she can only receive $100 from all vendors in any one year or give $25.00 back to the vendor.
What law(s) are condo hotels subject to in Nevada?
NRS 116B
Which of the below is the most correct statement? NRS 116.3101
* All new Associations must be incorporated and have specific terms in their corporate name.
* Must be formed under NRS 81
* Only needs to have one officer position identified according to NRS 82.
* Will only be required to pay Ombudsman’s fees after the transition to owners has occurred.
All new Associations must be incorporated and have specific terms in their corporate name.
If there is a conflict between the common-interest community’s CC&R’s and Nevada State Law, which one prevails?
Nevada State Law
If there is a conflict between a Federal law and the CC&R’s, which one prevails?
The Federal Law
If there is a conflict within the common-interest community’s documents, where do you look first to see which prevails?
The Documents themselves
One of the main reasons the Board of Directors is required by NRS 116 to meet on a 100 Day Basis is to:
Satisfy State of Nevada Financial Review Requirements
Which of the following might you most likely not find in a Public Offering Statement?
* That the home is in a flood plain
* That the home is on an earthquake fault.
* That the owner will need to pay a special capital improvement fee on purchase of the home.
* Lender Provisions
Lender Provisions
What would you most likely not expect to see in a Community Management Contract?
The Community Manager’s monthly salary
For which of the following reasons would a Board of Directors not be allowed to adopt rules and regulations?
* To clarify and further define the CC&R’s.
* To change the CC&R Provisions
* To help with buyer awareness
* To provide owners with knowledge of what disciplinary actions may be taken.
To change the CC&R Provisions
When must the open session Board of Directors meeting allow comments from the Owners?
At the beginning and the end of the open board meeting.
A common-interest community must always have a collection policy regardless of any provisions in the CC&R’s to:
Provide consistent handling of collection activities and comply with Nevada law.
Annexation agreements play what part in a common-interest community?
They bring in new parcels or lots into the common-interest community and are important legal documents, which need to be kept with the other important documents.
Which of the following is a correct statement?
* All State Laws take priority over all Federal Laws.
* The State Constitution always take priority over the Federal Constitution.
* The County and City Laws always take priority over State laws since they are closer to home and apply to a particular localities’ interests.
* All common-interest community documents must conform with State, Federal and Local laws.
All common-interest community documents must conform with State, Federal and Local laws.
Board Members serving on a Condo Hotel Board of Directors do not follow the same laws as a board member of board who is a director of a regular condominium in Nevada. True or False.
True
How much can the CICCH (Commission) fine a community manager for disciplinary Actions? NRS 116A.900 & NAC 116A.360
$5,000
How many positive votes do you need to have to terminate an association unless the documents state otherwise? NRS 116.2118
80%
What are the qualifications to become a Supervisory Community Manager? NAC 116A.165
Must have managed for a total of 4 years anywhere and as a properly licensed manager in Nevada for 2 of those 4 years.
What is the maximum amount that a community manager (Provisional or Supervisory as well) can accept in any one year from any one vendor? NRS 116.31185.
$100.00
If a member of the board of directors has committed a violation of Nevada Law, what actions can the CICCH (Commission) order? NRS 116.785
They can fine up to 1,000 for any one violation.
What is the composition of the board in a condo hotel after the end of the declarant control period? NRS 116B.440 – (Not in Books)
A majority of the board must be made up of unit owners 60 days after 75% of the units are closed.
Unless the documents provide otherwise, how often does the board of directs have to meet for a condo hotel association? NRS 116B.525
Annually
The Board of Directors in a common interest community has the responsibility for which of the following:
* The financial operations and maintenance of the association.
* To amend all of the documents without a vote of the owners.
* Total enforcement of NRS 116 throughout the community
* Limit the number of foreign-born residents who can live in the community if required in the documents.
The financial operations and maintenance of the association.
NRS 116.3106 states that the Bylaws must contain which of the following?
* A Copy of any use restrictions or maintenance requirements.
* A Copy of all deeds to the common areas that the association will own.
* Must contain the exact number of units that will be created in the association and how the association acts to change this number.
* Specify the powers that the executive board or the officers of the association may delegate to other persons or to a community manager
Specify the powers that the executive board or the officers of the association may delegate to other persons or to a community manager
NRS 116.31175 requires the board or their authorized agent to provide copies of any records described in this section to a unit’s owner or the Ombudsman’s office with in how many days?
21 Days
If the Common Interest Commission finds that a member of the board has committed a violation of the law or their governing documents, they can take all of the following actions except: NRS 116.790
* Order an audit
* Apply for appointment of a receiver
* Require the employment of properly licensed Community Manager
* Fine the Association up to $20,000.
Fine the Association up to $20,000.
A Community Management Company Office as detailed in NAC 116A.335 must follow all of the following provisions except:
* Must be located in Nevada
* Must comply with all City and County zoning requirements
* Must be located in the same County as the common interest community.
* If in a home, must be in a separate room which is set aside for the conduct of the manager’s specific duties as a community manager.
It is NOT required to be located in the same County as the common interest community.
The Community Manager’s certificate must be displayed in which of the following locations: NAC 116A.335
* Must be displayed in the lobby of the management company’s office.
* It must be displayed conspicuously in the community manager’s office.
* Must be displayed in a conspicuous place in the community association club house.
* Must be displayed in the Broker’s Office
It must be displayed conspicuously in the community manager’s office.
Which of the following is a requirement to qualify a person as a supervising community manager? NAC 116A.165
* Must be a Broker in a real estate company.
* Must be a Professional Community Association Manager through a national organization.
* Must have been engaged in the full-time management of a common interest community for at least 4 years, 2 of which must be in the state of Nevada.
* Must be the owner of the community association management company and have been an owner for 2 or more years in Nevada.
Must have been engaged in the full-time management of a common interest community for at least 4 years, 2 of which must be in the state of Nevada.
What best describes a Provisional Community Manager? NAC 116A.155
* Has fulfilled the educational and examination requirements for certification but has not fulfilled the 3,120 hours of supervised experience during a 2-year period.
* Has fulfilled the experience requirements for certification but has not fulfilled the education and examination requirements.
* Has no responsibility to anyone other than the Board for a period of 2 years.
* Has no responsibility to anyone other than the owner of the Management Company for a period of 2 years
Has fulfilled the educational and examination requirements for certification but has not fulfilled the 3,120 hours of supervised experience during a 2-year period.
What is the maximum number of Provisional Community Managers that a Supervising Community Manager can simultaneously supervise according to NAC 116A.165, Section 2?
There is currently no restriction
If the Association is planning on a Capital Improvement, what is the community manager’s responsibility?
The manager is required to get three bids when reasonably able to do so by Nevada law.
Where would you find the authority of tasks required of the Community Manager by the common interest community?
In the Management Contract & Nevada laws
Which statement is most correct regarding the laws regarding common interest communities (CIC) in Nevada?
* The only statute that concerns the CIC is NRS 116.
* NRS 117, the condominium statute, takes priority over NRS 116 for condominiums in Nevada.
* There are many laws that apply to CICs, but if there are any conflicts between the two NRS 116 applies.
* NRS 38, the mediation/arbitration law, only applies to CIC’s who are willing to pay the witness fees.
There are many laws that apply to CICs, but if there are any conflicts between the two NRS 116 applies.
Which statement is the most correct when an owner in a common-interest community asks to make alterations to his unit?
* He or she must always go through the Architectural Committee and can be refused approval when not conforming to published guidelines even if he is asking for an accommodation for disabilities.
* The Association must allow and pay for all improvements that an owner requests to accommodate his disabilities.
* The Association must give an owner asking for accommodations a specific requested parking space even if the Association does not own the spot.
* The Association must make a reasonable accommodation and must be able to prove that they tried to work with other owners to try to accommodate an owner’s request.
The Association must make a reasonable accommodation and must be able to prove that they tried to work with other owners to try to accommodate an owner’s request.
Why is it important for a Board to meet every 100 days?
To review the financial statement, reconciliations and account statements of the banks.
Which statement is the most accurate regarding the management contract?
* A Management Contract should not detail how many inspections of the property will be completed every month as it might take up to much of the Community Manager’s time.
* It is a good idea to make sure that the Board is required in the Management Contract to provide the Manager with all past rules and regulations, maps, plans and legal documents.
* There are no provision in NAC 116, NRS 116A or NRS 116 that require any specific items be placed in the management contract as these are private contracts between two organizations.
* A Management Contract does not need to be reviewed by the Association’s attorney prior to the signing as it might substantially put additional liabilities on the Board.
It is a good idea to make sure that the Board is required in the Management Contract to provide the Manager with all past rules and regulations, maps, plans and legal documents.
Which of the following is correct in accordance with NAC 116 and the continuing education requirements for Community Managers (both provisional and full community managers)?
* A Community Manager must verify 18 hours of continuing education over each 2 year renewal period, three of which must be Nevada law specific class on the CE number. NRS 116 & NAC 116 law.
* A Community Manager must satisfy 3, 120 hours of continuing education within each 2 year renewal period.
* A Community Manager must take 8 hours of law and 10 hours of general community management continuing education within each 2 year renewal period.
* A Community manager does not need to take any law classes during the 2 year renewal period, just 18 hours of general credits.
A Community Manager must verify 18 hours of continuing education over each 2 year renewal period, three of which must be Nevada law specific class on the CE number. NRS 116 & NAC 116 law.
Which of the follow is not a qualification to serve on the Commission for Common Interest Communities? NRS 116.600, Section 4
* A member must have been actively engaged in a business or profession related to common-interest communities for not less than 5 years immediately preceding the date of the member’s appointment, or…
* A member must have been actively engaged in a business or profession related to common-interest communities for not less than 3 years immediately preceding the date of the member’s appointment, or…
* Must not serve more than two consecutive full terms, or…
* Must be a resident of the State of Nevada.
A member must have been actively engaged in a business or profession related to common-interest communities for not less than 5 years immediately preceding the date of the member’s appointment, or
What is the maximum amount that can be charge in the foreclosure process in Nevada to a delinquent owner? NAC 116.470, Section 1
The association, through its agents can charge up to $1,950.00
Which is the most correct statement NRS 116A.410?
* When obtaining the temporary license, the applicant needs to pass the test, be offered a job and take the 60 hours of pre-licensing classes.
* When obtaining the temporary license, the applicant needs to be offered a job, within one year complete 18 hours of law classes, and take the pre-licensing test like everyone else.
* When obtaining the temporary license, the applicant needs to be offered a job and take 60 hours of pre-licensing classes.
* When obtaining the temporary license, the applicant needs to take the M-100, two of the advanced classes through CAI, and pass the state of Nevada community manager test.
When obtaining the temporary license, the applicant needs to be offered a job, within one year complete 18 hours of law classes, and take the pre-licensing test like everyone else.
What best describes an action without a meeting:
An Action where an act may be taken by written consent of Directors in lieu of a meeting.
Which of the following is not a violation of Nevada Revised Statute 118.110 and does not discriminate under the housing, landlord and tenant law?
* When an apartment does not qualify for an adult community and is advertised prohibiting families
* When an apartment is advertised and states the number of rooms, monthly rental fee and when available.
* When an apartment advertisement specifically restricts a particular race.
* When an apartment advertisement specifically restricts a sex.
When an apartment is advertised and states the number of rooms, monthly rental fee and when available.
Which Nevada law governs parking, streets and vehicles?
NRS 487
Which Nevada law governs arbitration and mediation?
NRS 38
Which Nevada law governs Condominium Hotels?
NRS 116B
How often must the Board of a Condo Hotel meet, unless the documents state otherwise?
Once a year
Which Nevada law surrounds the use of pools, lifeguards, and safety?
NRS 444
Are the specifications in the RFP considered part of the contract? Yes or No.
Yes
What are some of the problems that we have with contracts?
Small Print
Gross Negligence
Indemnification
Limits of Liability
What can you do to help owners protect themselves on a day to day basis?
Provide a copy of the State of Nevada Contractor’s Board listing
Is there a law in Nevada about practicing law without a license? Yes or No.
Yes
Who should be reviewing all contracts?
Association’s Corporate attorney
Who should be signing all contracts?
It depends on what the documents require.
Should the Manager EVER sign a contract or application? Yes or No.
No
Are insurance applications contracts? Yes or No.
Yes
Which of the following is the most correct answer regarding the installation of a satellite dish on his lot that is 1-meter or less.
* If the Association has a satellite policy in place, the owner must put it in the approved spot, or the association must prove that the requested spot does not substantially affect the cost to the owner or reduction in the signal.
* If the Owner installs a satellite dish on the common area and the Association does not have any other way to accommodate the dish, the Association must allow him or her to place it on the common area.
* The only requirements that need to be considered by the Association in approving a satellite dish is the size.
* The Owner must seek approval before installing any satellite dish.
If the Association has a satellite policy in place, the owner must put it in the approved spot, or the association must prove that the requested spot does not substantially affect the cost to the owner or reduction in the signal.
When a common-interest development has modifications and upgrades performed by a licensed contractor, those modifications need to:
* Be an enhancement to the community.
* Comply with current Federal American Disability Act provisions.
* Not cost more than all residents want to pay.
* Be completed after all other budget expenses have been covered for the year.
Comply with current Federal American Disability Act provisions.
Which of the following is the most correct statement?
* When the CC&R’s state that an action shall be taken, it means that the provision must be followed unless it violates a State, Federal or Local law.
* When the Bylaws state that there must be 5 Directors, the Board can ignore this requirement when they can’t get volunteers.
* When the CC&R’s are in conflict with NRS 116, but NRS 116 states that “Not with standing” what is in your documents, this means you can ignore the law, but abide by the CC&R provision.
* When the Bylaws are in conflict with the CC&R’s, they normally take precedence over the CC&R’s.
When the CC&R’s state that an action shall be taken, it means that the provision must be followed unless it violates a State, Federal or Local law.
When a Community Manager performs collection acts, what does he or she need to be concerned about complying with?
The Fair Debt Collection Act
When dealing with a situation that involves the Federal Fair Housing Act and the Americans With Disabilities act, what must you be able to do?
You need to be able to identify when someone is asking for an accommodation.
Which statement identifies what is not a good idea for a Board to consider for proper use of their committees?
* The use of Charters or Job Descriptions is a good idea for every Committee in a Common- interest community.
* Committees are a good way to help train future members of the Board of Directors.
* Committees can be given the Board’s ultimate responsibility when they sign a statement stating they will assume that responsibility.
* Committee can be relied on by the Board to help them conduct research, report back to the Board and provide recommendations.
Committees can be given the Board’s ultimate responsibility when they sign a statement stating they will assume that responsibility.
Which statement is the most correct statement?
* A Community Manager should never take the minutes for the association as the Secretary is responsible for all minutes.
* A Community Manager should always sit at the far end of the Board meeting table to show a clear distinction between the Board and Management.
* A Community Manager plays a very important part in the “Management Team” of a common- interest community.
* A Community Manager should delegate his or her wish to keep an inventory of records to the Secretary of the Association.
A Community Manager plays a very important part in the “Management Team” of a common- interest community.
Using a proper licensed and experienced CPA to prepare an audit is an example of utilizing an expert as required by the laws of Nevada. True or false?
True
What are the 5 Types of Maintenance in a Common Interest Community? List in alphabetical order.
Corrective
Emergency
Preventive
Routine
Scheduled
{CEPRS}
