LCAM Study Deck #2 Flashcards
A condominium unit owner discovered water covering the floor of the entire unit. The source of the flood is a leak from the unit’s refrigerator. The damages should be covered by
the unit owner’s insurance.
Rather than acquiring a unit, the buyer of a cooperative apartment
buys a unit in cooperation with other owners.
If the declaration of condominium does not state a procedure for authorizing material alteration to common elements, the construction of new tennis courts would need to be approved by
3/4 of the total voting interests in the association.
If the documents provide for alterations or additions, but do not set forth the manner, then at least 75% of the total voting interests in the association must agree to the alteration.
A condominium unit owner received notice of the board’s intent to levy a fine for a violation. If the fine committee does
not agree with the fine, the fine cannot be levied.
At the hearing, the committee must afford basic due process and allow the accused to be heard, state their case, and challenge evidence against them. The committee must then either “confirm” or “reject” the board’s intent to levy a fine. If the committee rejects the fine, the matter is over.
A homeowners’ association board must get competitive bids for contracts which will cost more than
If a contract for the purchase, lease, or rental of materials or equipment or for the provision of services requires a payment that exceeds 10% of the HOA’s budget including reserves, then the HOA must get competitive bids.
What is the maximum number of consecutive years a condominium board member may serve on the board, unless approved the membership?
8 yrs : The Florida Condominium Act provides that a board member may not serve more than 8 consecutive years unless approved by an affirmative vote of unit owners representing two-thirds of all votes cast in the election, or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy. Unless otherwise stated in the association bylaws, the statute applies to terms that began on or after July 1, 2018.
The formal components of cooperative documents do NOT include
the Florida Statutes: While Florida Statutes are the ultimate authority, they are not part of a cooperative’s governing documents.
In handling an insurance claim in which property damages are substantial, who is the LEAST likely person for the board to contact first?
the original developer: The condominium manager and insurance agent are definitely people to contact, and the association’s attorney may also need to become involved. The original developer is the least likely person to call, as they have no direct claim responsibility.
What items must be identified in a contract between a maintenance or management company and a condominium association to be enforceable?
services, obligations and responsibilities of the person(s) employed to provide the service ~
The agreement or contract must specify the obligations and responsibilities of the manager as well as the cost of each service, the frequency with which it is to be delivered, the number of persons employed to provide the service, and any relationship between the management and the association. If these are not set forth, then the contract cannot be enforced.
The declaration of condominium has parking spaces designated as limited common elements assigned to specific condominium units. In this case, unit owners have exclusive rights to their parking space because
a limited common element is reserved for the exclusive use of the unit to which it is assigned
Limited common elements are designated in the governing documents as being a portion of the common elements that are for the exclusive use of one or more, but not all, of the owners.
In condominiums, the second notice of the annual meeting must be mailed to each owner at least how many days prior to the date of the meeting?
14 days - The first notice is sent 60 days before the meeting; the second notice is sent 14 days before.
What is the possible action the Department of Business and Professional Regulations could take if a board director knowingly violated the Condominium or Cooperative Acts? The board director
may be fined and charged criminally.
The scope of authority of the board of directors is NOT specifically provided in the
annual meeting minutes
The Florida Administrative Code, Not-for-Profit Corporation Act, and association governing documents all define the powers and responsibilities of the Board of Directors. The minutes of the annual meeting do not.
According to Florida Statutes, what alternative does a Homeowners’ Association whose membership exceeds 100 members have to giving notice of a board meeting?
providing a predetermined schedule of board meetings
Bylaws may dispense with a notice if the members are informed of regularly scheduled meetings. For example, notice may not be required if the board meets on the second Tuesday of each month at 3:00 p.m. and if owners are so informed.
What form of insurance would condominium associations NOT purchase?
performance bond - The association may require performance bonds from contractors in case they fail to complete a job.. They are purchased by the contractors.
If provided for in the governing documents, when an owner of a condominium unit is over 30 days late in paying an assessment, the association has the power to
levy a late fee not to exceed the greater of $25.00 or 5% of each delinquent assessment.
If the documents state this, a late fee of $25 or 5% of the delinquent assessment may be charged, in addition to an annual interest of 18%.
In a condominium association, at the moment of turnover of control from the developer to the unit owners, statutory warranties
continue as stated in chapter 718, Florida Statutes.
Regarding the roof and structural components of a building, other improvements, and mechanical, electrical, and plumbing elements serving improvements or a building, except for mechanical elements serving only one unit, the developer must provide a warranty for a period beginning with the completion of construction of each building or improvement, and continuing for three years thereafter or one year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than five years.
A valid claim of lien on a condominium unit must provide the
legal description of the property, name of the owner, assessment amount and date due, and signature of an agent of the association.
Each person that is required to be covered by a fidelity bond in a cooperative association must be bonded for at least
the maximum total amount of money in the association account.
As per the Florida Administrative Code, which of the following is NOT required on a meeting agenda?
full disclosure of management and financial reports
The agenda outlines the meeting order and procedures, identifying the issue(s) that will be discussed at the meeting. Each meeting’s agenda should list the time, date and location and have a line to be filled in for the time the meeting begins and adjourns. A full disclosure of management and financial reports would not be included.
What should happen in the event of a vacancy among officers in an association?
The successor may be appointed at the next board meeting.
Vacancies can and must be filled by appointment, even when a quorum of members on the Board does not exist. If the association fails to fill vacancies on the Board, a unit owner may petition the circuit court for a receiver to be appointed to manage the affairs of the association.
What is NOT required when a condominium unit owner requests approval for an electric or natural gas vehicle charging station?
The charging station must be approved by owners using adjacent parking spaces
Per Florida Statute, owners have the right to install an electric or natural gas vehicle charging station within the boundaries of their limited common element parking area.
An association has two low-rise buildings, three tower buildings (all buildings created as separate condominiums) and a group of eight villas created as a separate single condominium. According to the Condominium Act, how many budgets are required for the subject community?
one budget for the association and additional budgets for each condominium operated by the association
A multi-condominium association must maintain separate accounting records for itself and for each condominium it operates. In this case, the association would need seven separate budgets, six for the buildings and one for the association.
In a condominium, the rights and obligations implicit to the ownership of a unit are
appurtenances to the unit
Ownership of a condominium unit includes “appurtenances,” meaning rights which are attached to the unit and pass with the unit upon its sale. A plain English definition of the term means “connected to.”
In accordance with part VII of chapter 468, Florida Statutes, an 80-unit homeowners’ association employs a maintenance coordinator who supervises the daily maintenance of the property. The maintenance coordinator
does not need to be licensed as a community association manager
A person who is charged only with performing the maintenance of a community association and who does not assist in any management services is not required to be licensed.
A condominium associations’ initial corporate structure is constituted in the
articles of incorporation
The Articles of Incorporation provide the framework for the organization of the association and define its membership and the voting rights of the members. The term Articles of Incorporation includes the original document creating the association and all amendments to it, and any other documents that define the existing form, membership, and responsibilities of the association.
First notice of the annual election of a condominium board of directors must be mailed or delivered to all owners not less than
60 days before a scheduled election, the association must mail, hand-deliver, or electronically transmit to each unit owner entitled to a vote, a first notice of the date of the election.
Florida Statues 720 are for which type of board - condos, HOA or cooperative
For HOA’s: the purpose of this chapter is to give statutory recognition to corporations not for profit that operate residential communities in this state, to provide procedures for operating homeowners’ associations, and to protect the rights of association members without unduly impairing the ability of such associations to perform their functions.
What are Chapters 718 & 719 of Florida Statues for
Chapter 718 is for condos, Chapter 719 is for cooperatives
How may the requirements for reviewed, compiled or audited financial statements be annually waived in a condominium
by a majority vote at a duly called membership meeting
A majority vote of a properly called meeting of the association’s membership must be obtained in order to waive down the year-end financial reporting requirement. This means that a quorum of unit owners must be present at the meeting (either in person or by proxy) and at least 51% of those owners present must vote to waive down the requirement. Unless the bylaws provide for a lower threshold, the quorum for a condominium association members’ meeting is a majority of the total voting interests in the association.
Reserve cash accounts in condominium associations are funded
at the same frequency the assessments are due.
The total amount of reserves needed is what determines how much monthly or quarterly assessments increase. The reserves must be funded at the same frequency as assessments are due from owners.
The chair of the financial committee of an association managed to borrow funds from a local bank to pay for improving the gym. The chairperson had the right to commit to this loan on behalf of the association
only with the approval of board of the directors
A committee member may act only on behalf of the board of directors and with their approval
A condominium unit owner discovered water covering the floor of the entire unit. The source of the flood is a leak from the unit’s refrigerator. The damages should be covered by
Unit Owner’s Insurance
Unit owners are responsible for the cost of reconstruction of any portions of the condominium property for which they are required to have property insurance, or for which they are responsible as per the documents. Floor coverings within units are excluded by the association’s fire and casualty insurance.
Rather than acquiring a unit, the buyer of a cooperative apartment
purchases shares in the corporation.
Cooperative means that form of ownership of real property wherein legal title is vested in a corporation or other entity. The units and common areas are owned by a corporation; residents own the shares in that corporation.
If the declaration of condominium does not state a procedure for authorizing material alteration to common elements, the construction of new tennis courts would need to be approved by
3/4 of the total voting interests in the association
If the documents provide for alterations or additions, but do not set forth the manner, then at least 75% of the total voting interests in the association must agree to the alteration.
A condominium unit owner received notice of the board’s intent to levy a fine for a violation. If the fine committee does
not agree with the fine, the fine cannot be levied
At the hearing, the committee must afford basic due process and allow the accused to be heard, state their case, and challenge evidence against them. The committee must then either “confirm” or “reject” the board’s intent to levy a fine. If the committee rejects the fine, the matter is over.
A homeowners’ association board must get competitive bids for contracts which will cost more than
10% of the total annual budget of the association including reserves
If a contract for the purchase, lease, or rental of materials or equipment or for the provision of services requires a payment that exceeds 10% of the HOA’s budget including reserves, then the HOA must get competitive bids.
What is the maximum number of consecutive years a condominium board member may serve on the board, unless approved the membership?
8 years
The Florida Condominium Act provides that a board member may not serve more than 8 consecutive years unless approved by an affirmative vote of unit owners representing two-thirds of all votes cast in the election, or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy. Unless otherwise stated in the association bylaws, the statute applies to terms that began on or after July 1, 2018.
The formal components of cooperative documents do NOT include
While Florida Statutes are the ultimate authority, they are not part of a cooperative’s governing documents.
Cooperatives do have bylaws and articles of incorporation
What items must be identified in a contract between a maintenance or management company and a condominium association to be enforceable?
services, obligations and responsibilities of the person(s) employed to provide the service
The agreement or contract must specify the obligations and responsibilities of the manager as well as the cost of each service, the frequency with which it is to be delivered, the number of persons employed to provide the service, and any relationship between the management and the association. If these are not set forth, then the contract cannot be enforced.
The declaration of condominium has parking spaces designated as limited common elements assigned to specific condominium units. In this case, unit owners have exclusive rights to their parking space because
a limited common element is reserved for the exclusive use of the unit to which it is assigned
Limited common elements are designated in the governing documents as being a portion of the common elements that are for the exclusive use of one or more, but not all, of the owners.
In condominiums, the second notice of the annual meeting must be mailed to each owner at least how many days prior to the date of the meeting?
14 days
condo and HOA annual and special meetings must comply with the community’s
The bylaws
The bylaws provide board members with the criteria they must follow, such as the appropriate advance notice, the required quorum, and proper voting procedures.
What is the possible action the Department of Business and Professional Regulations could take if a board director knowingly violated the Condominium or Cooperative Acts? The director
may be fined and charged criminally.
What form of insurance would condominium associations NOT purchase?
Performance Bond Insurance - The association may require performance bonds from contractors in case they fail to complete a job.. They are purchased by the contractors.
If provided for in the governing documents, when an owner of a condominium unit is over 30 days late in paying an assessment, the association has the power to
levy a late fee not to exceed the greater of $25.00 or 5% of each delinquent assessment.
If the documents state this, a late fee of $25 or 5% of the delinquent assessment may be charged, in addition to an annual interest of 18%.
In a condominium association, at the moment of turnover of control from the developer to the unit owners, statutory warranties
continue as stated in chapter 718, Florida Statutes.
Regarding the roof and structural components of a building, other improvements, and mechanical, electrical, and plumbing elements serving improvements or a building, except for mechanical elements serving only one unit, the developer must provide a warranty for a period beginning with the completion of construction of each building or improvement, and continuing for three years thereafter or one year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than five years.
A valid claim of lien on a condominium unit must provide the
legal description of the property, name of the owner, assessment amount and date due, and signature of an agent of the association.
Each person that is required to be covered by a fidelity bond in a cooperative association must be bonded for at least
the maximum total amount of money in the association account.
As per the Florida Administrative Code, which of the following is NOT required on a meeting agenda?
full disclosure of management and financial reports
The agenda outlines the meeting order and procedures, identifying the issue(s) that will be discussed at the meeting. Each meeting’s agenda should list the time, date and location and have a line to be filled in for the time the meeting begins and adjourns. A full disclosure of management and financial reports would not be included.
What should happen in the event of a vacancy among officers in an association?
The successor may be appointed at the next board meeting
Vacancies can and must be filled by appointment, even when a quorum of members on the Board does not exist. If the association fails to fill vacancies on the Board, a unit owner may petition the circuit court for a receiver to be appointed to manage the affairs of the association.
