State Practice Exam #1 Flashcards by Community Associations Academy

Which statement is NOT true of common-interest communities?

A. Membership in the association is mandatory.

B. Owners share responsibility in and for the community.

C. Purchasers agree to pay assessments only if they use the common elements.

D. Its governing documents create mutual obligations.

C. Purchasers agree to pay assessments only if they use the common elements.

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Under Florida law, a Homeowners’ Association must

A. issue membership certificates.

B. not allow any one person to act in place of the Board.

C. be incorporated.

D. B and C

D. B and C

B. not allow any one person to act in place of the Board.

C. be incorporated.

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The association may charge a fee in connection with the sale, mortgage, lease, sublease, or other transfer of a unit, which may not exceed ________.

D. $100

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The association has the right to access any unit during reasonable hours in order to

A. make repairs that affect the common elements

B. make replacements that affect the common elements

C. maintain the common elements

D. all of these

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If a unit is determined to have been abandoned, the association may:

A. put the unit up for sale immediately

B. appoint a receiver to lease it out to help cover the association’s costs

C. enter the unit to assess the situation and make any needed repairs

D. B and C

D. B and C

B. appoint a receiver to lease it out to help cover the association’s costs

C. enter the unit to assess the situation and make any needed repairs

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If an association is successful in a lien foreclosure
A. the unit may be rented or sold.
B. the unit becomes the association’s property.
C. the unit reverts to the developer.
D. A and B

D. A and B

A. the unit may be rented or sold.
B. the unit becomes the association’s property.

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The principle purpose guiding the Board of Directors is

A. to organize social activities for residents.

B. to preserve, protect, and enhance the community’s property, assets, and lifestyle.

C. to hold annual meetings and elections.

D. to determine amounts for assessments and collect them.

B. to preserve, protect, and enhance the community’s property, assets, and lifestyle.

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Members may hold a meeting to recall a member of the Board of Directors by obtaining the signatures of _____ of the voting interests.

A. 51%

B. 10%

C. 20%

D. 25%

B. 10%

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Limited common elements are owned by the _______ and reserved for use by a certain unit owner or group of unit owners.

A. community

B. relevant unit owners

C. developer

D. people who pay for them

A. community

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Any community association management firm responsible for the management of more than ____ units or an annual budget of_________ or more must be licensed.

A. 5…$50,000

B. 10…$100,000

C. 7…$75,000

D. 3…$25,000

B. 10…$100,000

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For HOAs incorporated after December 31, 2007, and all condominium associations, the developer must provide the association with an audit of the association’s funds from the time of inception to the date of __________.

A. turnaround

B. reversal

C. turnover

D. improvement

C. turnover

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A unit or parcel holding one voting interest in an association receives

A. a ballot

B. an outer envelope with a place for unit number and signature of voter

C. a smaller envelope for the ballot

D. all of these

A. a ballot

B. an outer envelope with a place for unit number and signature of voter

C. a smaller envelope for the ballot

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Cooperatives may enter into a bulk contract for cable television services. The contract must be for at least ___ years.

A. 3

B. 2

C. 1

D. 4

B. 2

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Unit owners who are not board members have the power to do all of these except

A. amend the Declaration

B. institute a recall of one or more board members

C. waive financial reporting method

D. increase assessments

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If a cooperative or condominium association’s documents allow for material alterations or additions to the common areas/elements but do not specify the voting requirements, the statutory requirement is___ for cooperatives and ___ for condominiums.

A. 75%…2/3

B. 2/3 … 75%

C. 51%…51%

D. 100%…100%

B. 2/3 … 75%

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Chapter 617 of Florida law

A. defines the limits of a community association’s authority.

B. governs not-for-profit corporations.

C. defines how a not-for-profit corporation can amend Articles of Incorporation.

D. all of these

A. defines the limits of a community association’s authority.

B. governs not-for-profit corporations.

C. defines how a not-for-profit corporation can amend Articles of Incorporation.

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Which type of insurance would cover an incident where someone is injured in a fall on association property?

A. property

B. liability

C. D & O

D. fidelity

B. liability

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A particular Homeowners’ Association’s informal Rules and Regulations, such as those regarding pool hours and guest passes

A. set out the association’s specific rules regarding everyday living.

B. are part of the governing documents.

C. are part of the Bylaws.

D. must be recorded with the county clerk’s office.

A. set out the association’s specific rules regarding everyday living.

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Homeowners’ Associations must be formed as

A. for-profit corporations

B. private gated communities

C. inclusive partnerships

D. not-for-profit corporations

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When a unit owner or their tenant or guest violates a rule, they can be fined

A. $100 per violation and up to $1000 in the aggregate

B. after 14 days’ notice and an opportunity for a hearing

C. no more than $50 per violation, total

D. A and B

D. A and B

A. $100 per violation and up to $1000 in the aggregate

B. after 14 days’ notice and an opportunity for a hearing

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An association has a lien on each unit for all unpaid assessments and evidences its claim for a delinquent assessment by having the association attorney file a ______ with the clerk of the county court.

A. estoppel certificate

B. claim for assessments due

C. mechanic’s lien

D. claim of lien

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Written notice of intent to file a lien must be given ____ days prior to the filing for condominiums and cooperatives and ___ days for HOAs.

A. 60…90

B. 30…45

C. 45…90

D. 30…60

B. 30…45

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In a Homeowners’ Association, the owner owns

A. the house, but none of the land

B. the house plus any porches, patios and balconies

C. the land, but not the house

D. the house and property, out to the roadway

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When the association contracts for a service, the contractor should provide a certificate of ______.

A. liabillity

B. insurance

C. capability

D. competence

B. insurance

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When an association acquires a unit through lien foreclosure, it is liable for A. up to 12 months of assessments B. late fees C.interest D. none of these

**D.** none of these

A notarized Notice of Commencement must be filed by a contractor with the clerk of the circuit court prior to beginning any construction in excess of A. $1000 B. $10,000 C. $ 2,500 D.$ 25,000

**C.** $ 2,500

A security officer hired through a security agency must have which license? A. proprietary B. Class D C. Class G D. all of these

**B.** Class D

Which of the following is NOT a duty of a community association manager? A. preparing budgets and financial reports B. carrying out policies adopted by the Board of Directors C. serving on the Board of Directors D. calculating votes required to approve an amendment

**C.** serving on the Board of Directors

Federal, state and local laws A. have nothing to do with community associations, since they are private. B. must not be contradicted by an association’s rules. C. should be incorporated into the Declaration of Condominium. D. should be part of the original Declaration of Covenants and Restrictions.

**B.** must not be contradicted by an association’s rules.

Which is not considered a limited common element? A. a patio B. a parking space C. a roof D. a balcony

**C.** a roof

Per Chapter 721, when a timeshare is sold, the name, home address, work address, home telephone number, work telephone number and cellular telephone number of the lead dealer from whom the personal contact information was obtained must be retained by the timeshare association for A. one year B. five years C. ten years D. seven years

**B.** five years

Which of these is not a violation of the Fair Housing Act? A. refusal to sell a unit to someone because of their race B. refusal to sell a unit to someone based on their religion C. refusal to rent a unit in a 55+ community to a family with children under 18 D. refusal to rent a unit to a person because of a physical disability

**C.** refusal to rent a unit in a 55+ community to a family with children under 18

Security guards an agencies are regulated by the A. Office of the County Sherriff B. Department of Alcohol, Tobacco and Firearms C. Department of Agriculture and Consumer Services D. Department of Homeland security

**C.** Department of Agriculture and Consumer Services

Which pest-control activity requires hiring a licensed operator? A. spraying for weeds in common areas B. an owner spraying for pests in flower pots on his lanai C. fumigation of a common element or owners’ units D. an association employee setting mousetraps in the clubhouse

**C.** fumigation of a common element or owners’ units

The Moore’s unit has a plumbing leak that has been discovered by their neighbor because water is entering their unit too. The Moores are not at home. They did not provide a key to the association, so the management company sends a handyman break into the unit, causing some damage to the door. Who is responsible for the damage? A. the handyman B. the association C. the Moores D. the management company

**C.** the Moores

What signs must all elevators display? A. Certificate of Operation B. No Smoking C. International symbol for “No Smoking” D. all of these

**D.** all of these A. Certificate of Operation B. No Smoking C. International symbol for “No Smoking”

When a master contractor does not pay sub-contractors for construction, services, or materials, the ______ has (have) the right to place a lien on the property. A. association B. master contractor C. subcontractors D. county clerk

**C.** subcontractors

“A purchaser, for consideration, receives ownership rights in or a right to use accommodations, and facilities, if any, for a period of time less than a full year during any given year.” This describes a A. hotel B. cooperative C. condominium D. timeshare

**D.** timeshare

A construction lien can be placed on A. the association operating fund B. individual unit owners for their share of the lien C. the common elements D. all of these

**B.** individual unit owners for their share of the lien

Florida Chapter 721 A. gives statutory recognition to real property and personal property timeshare plans. B. requires full and fair disclosure of terms, conditions, and services by resale service providers acting on behalf of consumer timeshare re-sellers. C. establishes procedures for the creation, sale, exchange, promotion, and operation of timeshare plans. D. All of these

**D.** All of these A. gives statutory recognition to real property and personal property timeshare plans. B. requires full and fair disclosure of terms, conditions, and services by resale service providers acting on behalf of consumer timeshare re-sellers. C. establishes procedures for the creation, sale, exchange, promotion, and operation of timeshare plans.

D & O insurance A. protects the association B. never protects the manager C. always protects the Board of Directors D. always protects the management firm

**C.** always protects the Board of Directors

Which of the following is NOT a task that is performed by a Community Association Manager for the benefit of the association? A. calculating numbers required for a quorum B. assisting in noticing or conducting meetings C. paying CAM licensure fees D. preparing estoppel certificates

**C.** paying CAM licensure fees

The insurance policy that covers employers for sexual harassment, wrongful discharge and sexual discrimination is a(n) ________________ policy. A. Employment Practices Liability B. Harassment and Discrimination C.D & O D. Property and Casualty

**A.** Employment Practices Liability

The Declaration of Condominium A. creates the association. B. sets forth the formal regulations for all of the property in a residential community. C. defines voting rights of the members. D. includes a description of responsibilities of officers and directors.

**B.** sets forth the formal regulations for all of the property in a residential community.

If a director does not vote at a board meeting, he or she is A. presumed to have voted “no” B. presumed to have abstained C. presumed to have assented D. presumed to have tabled the motion

**C.** presumed to have assented

The Operating Budget of an association contains all of these line items EXCEPT A. insurance B. reserves C. maintenance D. security

**B.** reserves

Notice of any meeting at which a budget will be approved requires advance notice to owners of \_\_\_\_\_\_. A. 48 hours B. 60 days C. 14 days D. 7 days

**C.** 14 days

To be licensed, a CAM must do all of these except A. take an approved pre-licensing course B. pass the CAM exam and pay necessary fees C. pass the real estate exam D. have good moral character

**C.** pass the real estate exam

The Board of Directors wants to begin charging a monthly fee for use of the tennis courts. In the past there has been no fee. Which situations apply? A. The fee can be imposed if a majority vote of the membership is in favor. B. The fee can be imposed without a vote if the documents say it’s legal. C. The fee cannot be imposed; there are never any fees for common elements. D. A & B

**D. A & B** A. The fee can be imposed if a majority vote of the membership is in favor. B. The fee can be imposed without a vote if the documents say it’s legal.

Nominating Committees for elections are permitted only in A. condominiums B. timeshare C.HOAs D. timeshares

**C.**HOAs

The contract between a Community Association Manager of management firm and an association must include which of the following? A. obligations and responsibilities of the manager B. cost and frequency of each service C. number of persons employed to provides the services D. all of these

**D.** all of these A. obligations and responsibilities of the manager B. cost and frequency of each service C. number of persons employed to provides the services

An association’s budget for the upcoming year is the basis for determining A. whether or not reserves will be allowed B. the amount of assessments to be paid by owners C. how well-maintained the community property will be D. whether the treasurer should be retained in office

**B.** the amount of assessments to be paid by owners

In an HOA, if a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services requires payment by the association that exceeds\_\_\_\_\_ percent of the total annual budget of the association, including reserves, the association must obtain competitive bids. A. 5% B. 15% C. 10% D. 3%

**C.** 10%

CAM Portfolio Managers work for a management firm and manage A. the investments of an association B. multiple community associations C. the investments of the management firm D. one of the firm’s community associations

**B.** multiple community associations

When a member requests the assessment status of his/her unit, the association or manager must provide them with a(n) ______________ within \_\_\_days of the request. A. estoppel certificate…15 B. delinquent assessments notice…10 C. notice of intent to file a lien…30 D. Financial report…90

**A.** estoppel certificate…15

During the two years prior to license renewal, CAMs must take _____ hours of continuing education. A. 10 B. 20 C. 25 D. 30

**B.** 20

Leslie Bissonette, a licensed CAM, is hired by Fairfield Condominium Association to work solely for them. She is referred to as A. the CFO of the association. B. the operations manager of the association C. an on-site manager D. a portfolio manager

**C.** an on-site manager

An officer of the association, manager, or other person providing notice of the meeting of the Board of Directors must provide a(n) ______ or United States Postal certificate of mailing. A. declaration B. confirmation C. affidavit D. authorization

**C.** affidavit

An operating budget should include A. a separate line for each expense item B. the square footage of each unit C. monthly totals and annual totals for all items D. A and C

**D. A and C** A. a separate line for each expense item C. monthly totals and annual totals for all items

The association may suspend the voting rights of a unit owner who is ____ days or more delinquent in paying assessments. A. 60 B. 90 C. 120 D. 30

**B.** 90

For timeshares, copies of the final budget must be filed with the division within \_\_\_days of the beginning of the fiscal year, together with the number of periods of 7-day use available annually. A. 60 B. 45 C. 30 D. 90

**C.** 30

Association pools can be inspected for violations at any time by the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. A. state department of health B. county health department C. pool maintenance company D. all of these

**B.** county health department

Pools 200 square feet or greater _must_ have which of the following prominently posted in letter no less than 4 inches high? A. No children B. No diving C. No pool floats D. No smoking

**B.** No diving

To be in compliance with the Fair Housing Act, Community Associations must assure that their common elements A. do not have any offensive signs posted on them. B. are in compliance with the rules of the American National Standards Institute . C. are readily accessible and usable by handicapped persons. D. B and C

**D. B and C** B. are in compliance with the rules of the American National Standards Institute . C. are readily accessible and usable by handicapped persons.

Which is NOT a task performed by a Community Association Manager? A. Responding to requests for certificates of assessment B. Acting as Sergeant-at-Arms at an Annual Meeting of owners C. Coordinating and performing maintenance services D. Calculating amounts due to the association before filing a civil suit.

**B.** Acting as Sergeant-at-Arms at an Annual Meeting of owners

During a declared state of emergency, associations have the power to A. relocate the association’s principal office. B. require the evacuation of association property. C. hold meetings with as much notice as is practical. D. all of these

**D.** all of these A. relocate the association’s principal office. B. require the evacuation of association property. C. hold meetings with as much notice as is practical.

The Board of Directors may hold closed meetings when A. proposed or pending litigation will be discussed. B. the budget will be discussed C. personnel matters will be discussed D. A and C

**D. A and C** A. proposed or pending litigation will be discussed. C. personnel matters will be discussed

Notices of Board Meetings and Annual Meetings _must_ be A. delivered by mail, hand delivery or electronic delivery B. posted on the association property in a conspicuous place C. broadcast over closed-circuit TV D. A and B

**D. A and B** A. delivered by mail, hand delivery or electronic delivery B. posted on the association property in a conspicuous place

Association swimming pools need to be re-licensed every A. 3 years B. 2 years C. year D. 6 months

**C.** year

Committees are __________ and \_\_\_\_\_\_\_\_\_\_by the Board of Directors. A. appointed…obeyed B. appointed…dissolved C. created…diminished D. governed…admonished

**B.** appointed…dissolved

Fair Acres Condominium is building a clubhouse and is finalizing a construction contract. The major purpose of a Performance Bond and Payment on Labor and Materials Bond is to protect A. the contractor B. the subcontractors C. the community association D. the laborers

**C.** the community association

D & O insurance should protect ____________ members of the Board of Directors from personal lawsuits. A. current B. current and former C. A and B D. current, former and future

**C. A and B** A. current B. current and former

In _most_ associations, the budget is approved by\_\_\_\_\_\_\_\_\_, but governing documents may specify otherwise. A. the unit owners B. the Budget Committee C. the management company D. the Board of Directors

**D.** the Board of Directors

Owners present at Board Meetings may speak about A. any issue of conern B. agenda items only C. any item on the previous meeting’s minutes D. plans to recall a director

**B.** agenda items only

A swimming pool serving less than 32 units, with no rentals in the project may A. not need to have a safe and sanitary pool B. be exempt from licensing C. not have to post rules at the pool D. may allow diving

**B.** be exempt from licensing

The Condominium Act requires a reserve account for all of these _except_ A. roof replacement B. painting exterior of buildings C. grounds maintenance D. pavement resurfacing

**C.** grounds maintenance

A _____________ should be provided for everyone who handles association disbursements. A. performance bond B. loyalty oath C. fidelity bond D. workmen’s comp policy

**C.** fidelity bond

Committees exist to\_\_\_\_\_\_\_\_\_\_the Board of Directors. A. fill vacancies on B. make recommendations to C. study certain issues for D. B and C

**D. B and C** B. make recommendations to C. study certain issues for

The association may install solar collectors, clotheslines, and other energy efficient devices based on renewable resources on association property, but _____________ are specifically excluded from such installations. A. swimming pools B. patio railings C. golf courses D. tennis courts

**B.** patio railings

If the budget exceeds 115% of the previous year’s assessments, excluding reasonable reserves for repair or replacement, anticipated expenses that the Board does not expect to recur on a regular/annual basis, or betterments to the property, then ____ of the voting members may petition the Board to reconsider the budget. The petition must be received within _____ days of the adoption of the budget. A. 10%...21 B. 20%...14 C. 51%...7 D. 75%...30

**A.** 10%...21

Which of the following situation(s) would D & O insurance _never_ cover? A. While a policy is in force, a ballot is omitted from an election mailing. B. The treasurer embezzles funds from the reserve account. C. A claim is made for an incident that occurred before the policy was in effect D. B and C

**D. B and C** B. The treasurer embezzles funds from the reserve account. C. A claim is made for an incident that occurred before the policy was in effect

Alternative Dispute Resolution is arbitration in place of A. negotiation B. litigation C. confrontation D. opposition

**B.** litigation

What is the correct order of increasingly stringent examinations of annual financial reports? A. cash accounting, audited, reviewed, compiled B. cash accounting, compiled, reviewed, audited C. reviewed, cash accounting, compiled, audited D. cash accounting, reviewed, compiled, audited

**B.** cash accounting, compiled, reviewed, audited

Flood insurance is required if the association property is A. anywhere in Florida B. in a Special Flood Hazard Area C. anywhere within 25 miles of a lake or river D. north of Orlando

**B.** in a Special Flood Hazard Area

The Reserve Budget must contain the following information, regardless of whether funding of the reserves has been waived or not, except: A. Beginning and ending balance of each reserve item B. Amounts added and expended during the year C. The bank account where the reserves are held D. How reserves were estimated, date of estimation and whether they were waived or funded

**C.** The bank account where the reserves are held

The Fining Committee must be made up of at least\_\_\_\_members. A. 5 B. 3 C. 7 D. 2

**B.** 3

The _____________ of a unit owner for common expenses is limited to the amounts for which he or she is assessed from time to time. A. role B. function C. purpose D. liability

**D.** liability

For condominiums and cooperatives, proxies used to waive or reduce the funding of reserves or the use of existing reserve funds for purposes other than those for which they were intended must contain A. an affidavit of understanding by the proxy holder B. a statement advising members they may be liable for special assessments if reserves are reduced or redirected C. a notarized statement by the treasurer regarding reserves D. a certificate of audit by a CPA

**B.** a statement advising members they may be liable for special assessments if reserves are reduced or redirected

The Board of Directors of Silver Oaks Condominium Association appoints a committee to investigate the costs of various types of resurfacing of the pool from three different vendors. The committee should A. submit their report to the board along with recommendations for reduced pool hours for tenants B. submit to the board a negotiated and signed contract with the lowest bidder C. submit a written report detailing all the prices they got from all of the vendors D. get prices for new furniture for around the pool as well as the resurfacing prices

**C.** submit a written report detailing all the prices they got from all of the vendors

A meeting at which directors carry out their duty of conducting the association’s affairs is A. a committee meeting B. a special meeting C. a board meeting D. an ad hoc committee

**C.** a board meeting

The two main purposes of an Annual Meeting of the association membership are A. to air members’ grievances B. to elect directors for terms that are expiring C. to review the affairs of the association D. B and C

**D. B and C** B. to elect directors for terms that are expiring C. to review the affairs of the association

Condominiums and co-operatives with more than ____ units must obtain competitive bids if the contract exceeds ____ of the association’s total annual budget including reserves. A. 5…15% B. 10…5% C. 3…5% D. 8…10%

**B.** 10…5%

Buildings constructed with appropriate wind mitigation techniques A. can earn insurance credits with a wind mitigation inspection. B. are likely to incur less damage in a windstorm. C. result in less money having to be paid by the insurance company. D. all of these

**D.** all of these A. can earn insurance credits with a wind mitigation inspection. B. are likely to incur less damage in a windstorm. C. result in less money having to be paid by the insurance company.

A meeting of directors called solely for the purpose of discussing and voting on only one specific issue is a A. budget meeting B. annual meeting C. special meeting D. committee meeting

**C.** special meeting

Which designates the one person who is eligible to cast a vote for a unit? A. provisional voting agreement B. voter registration card C. voting certificate D. ballot

**C.** voting certificate

“Any entity responsible for the operation of common elements or areas owned in undivided shares by owners, any entity which operates or maintains other real property in which owners have use rights, where membership in the entity is composed exclusively of unit owners, shareholders, parcel owners or their elected or appointed representatives and is a required condition of unit ownership” best defines A. a timeshare B. a condominium C. a community association D. a subdivision

**C.** a community association

In condominiums and HOAs, if 20 percent of the voting interests petition the board to place an item on the agenda, the board must do so within ______ days of receiving the petition. A. 10 B. 30 C. 60 D.45

**C.** 60

At an Annual Membership Meeting, limited proxies may be used for all of the following _except_ A. to waive or reduce reserve funding B. to elect directors to the board C. to reduce or increase financial reporting requirements D. to amend the Declaration

**B.** to elect directors to the board

An Annual Meeting of association members must be held A. at least once a year B. within 45 miles of the association property or within the same county C. only if 75% of the voting interests can attend D. A and B

**D. A and B** A. at least once a year B. within 45 miles of the association property or within the same county

The Fairfield Condominium property is in the path of a Category 4 hurricane. It would be _most_ appropriate for the Board of Directors to hold A. a special meeting B. a budget committee meeting C. an emergency meeting D. a grounds committee meeting

**C.** an emergency meeting

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State Practice Exam #1 Flashcards

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