State Practice Exam #2 Flashcards by Community Associations Academy

Flood, earthquake, nuclear damage, war, intentional acts, neglect, and vermin are usually excluded in a

A. D & O policy

B. fidelity policy

C. limited liability policy

D. excluded liability policy

C: limited liability policy

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Transition of power from the developer to the association occurs when

A. the developer decides to turn over operations to the association.

B. the association holds the majority of seats on the board.

C. the association stages a rebellion against the developer.

D. the developer finishes building the last unit.

B. the association holds the majority of seats on the board.

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A proposal to amend the governing documents must contain _________ of the provision to be amended. The proposed deleted language will be designated with ________, and the proposed added language will be ________.

A. the amendment number…an asterisk…boldfaced

B. the full text…a strikethrough…underlined

C. the full text…italics…underlined

D. the full text…parentheses…underlined

B. the full text…a strikethrough…underlined

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For condominiums and cooperatives with more than 10 units, if a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association of an amount that exceeds 5 percent of the association’s budget, including reserves, the association must ___________.

A. hold a special meeting to vote on the expense

B. hold a membership meeting

C. obtain competitive bids

D. take the lowest bid offered

C. obtain competitive bids

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Notices of Board Meetings must be posted on the property _________ before the meeting.

A. 14 days

B. 48 hours

C. 60 days

D.72 hours

B. 48 hours

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A swimming pool deck is defined by statute as within _____ feet of the pool.

A. 10

B. 6

C. 4

D.15

C. 4

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The main purpose of a committee is to

A. study issues and make recommendations to the board

B. act on behalf of the board

C. hire employees

D. nominate candidates for the board

A. study issues and make recommendations to the board

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The governing documents for a Florida Homeowners’ Association are all of the following except

A. the recorded declaration of covenants and all duly adopted and recorded amendments, supplements, and recorded exhibits

B. the articles of incorporation and bylaws and any duly adopted amendments

C. the proprietary lease

D. the rules and regulations adopted under the authority of the recorded declaration, articles of incorporation, or bylaws and duly adopted amendments thereto.

C. the proprietary lease

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All contracts for services and for the purchase, lease, or rental of materials for more than one year

A. must be put out for competitive bid

B. must be in writing

C. must be approved at a membership meeting

D. should not be included in the official records

B. must be in writing

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When handling insurance claims, it is wise to___________ prior to repairs commencing.

A. do as much repair work as possible yourself before reporting the claim

B. take clear pictures of all the damage that will be part of the claim

C. seek the advice of experts, such as your attorney, if damage is substantial

D. B and C

B and C

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Competitive bidding is not required

A. in the case of an emergency

B. if only one supplier can provide the service

C. A and B

D. if the bid exceeds 10% of the annual budget

ANSWER: C

A and B

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The main reason an association would require access to units during an emergency would be to

A. turn off appliances

B. disconnect the electricity

C. prevent further damage to the units

D. remove moldy carpets

C. prevent further damage to the units

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______ is the individual owner’s policy that protects the personal property of the owner and liability for any occupants while in the individual unit.

A. fire and casualty

B. HO-6

C. personal property insurance

D. contents insurance

B. HO-6

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Associations with elevators must annually file copies of maintenance contracts with the

A. Bureau of Elevator Inspection

B. Department of Consumer Services

C. Hotel and Restaurant Trust Fund

D. Department of Business and Professional Regulation

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Which of these rules does not by law need to be on a sign posted at the swimming pool?

A. No diving

B. Bathing load

C. Pool toy and float restrictions

D. Pool hours

C. Pool toy and float restrictions

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If a condominium building is at least 75 feet high, it must have at least one public elevator capable of operating ___________.

A. 24 hours per day

B. from 6 AM until 11 PM

C. from 11 PM until 6 AM

D. on an alternative power source

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In a condominium, the common elements are owned by

A. the proprietary leaseholder

B. all of the owners

C. the developer

D. tenants and owners

B. all of the owners

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Florida Statute 627 established Citizens Property Insurance Corporation

A. because in certain areas, private insurance companies are unwilling or unable to insure property.

B. to give Florida property owners somewhere to turn when insurance applications are denied.

C. to encourage citizens to register their property with CPIC.

D. A and B

A and B

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If an owner’s guest negligently or purposely damages any common element, who is responsible?

A. the guest

B. the owner

C. the association

D. the insurance company

B. the owner

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An association’s common elements may be enlarged by

A. an amendment to the Declaration of Condominium, in accordance with the documents

B. a 75% approval of condominium owners and a 2/3 approval in cooperatives

C. a 51% approval in both condominiums and cooperatives

D. A and B

A and B

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An association may levy a fine on a unit owner, their tenant or guest. The maximum per violation is _____, but if the fine remains unpaid it can escalate to a maximum of _________.

A. $100…$1000

B. $50…$500

C. $35…$350

D. $45…$450

A. $100…$1000

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Policies for condominiums must contain a provision stating that coverage afforded by such a policy is _________________over the amount recoverable under any other policy covering the same property.

A. moderately

B. excess coverage

C. less coverage than

D. somewhat

B. excess coverage

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A contract or transaction between an association and any of its directors or any corporation or entity in which a director has an interest

A. must be approved by two-thirds of the directors.

B. must be entered in the board meeting minutes.

C. must be disclosed at the next owner’s meeting and may be cancelled with a majority vote.

D. all of these

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Per Florida Chapter 617, which of the following does not need to be included in an association’s articles of incorporation?

A. manner of electing directors

B. purpose of the corporation

C. social security number of the registered agent

D. corporate name and address

C. social security number of the registered agent

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**If a unit owner’s voting rights have been suspended, the voting interest assigned to his/her unit is not counted toward a. \_\_\_\_\_\_\_\_\_\_** A. proxy B. membership C. quorum D. insurance estimate

**C.** quorum

**The First Notice of the Date of Elections must be sent to condominium and cooperative association members ___ days before the date of the election.** A. 45 B. 14 C.60 D.30

**C.** 60

**The document that must be provided by the developer or unit owner that includes information about whether the unit has been occupied by someone other than the buyer, the name and address of the escrow agent, and whether timeshare estates have been created is called:** A. Form of Agreement B. FAQ Sheet C. Development Plan D. Disclosure document

**B.** FAQ Sheet

**D & O Insurance protects ___________ in the case of a personal lawsuit.** A. the community association B. the manager or firm, if included, C. the Board of Directors D. B and C

**D.** B and C

**Any contract made by the developer prior to transition may be canceled by\_\_\_\_\_\_ of the association’s voting interests.** A. 51% B. 75% C. 30% D. a plurality of votes of those present at the meeting

**B.** 75%

**Which _best_ completes the statement? The association may suspend a unit’s right to use \_\_\_\_\_\_\_\_\_** after an assessment delinquency of 90 days or more. A. the swimming pool and tennis court B. the common elements, but not the limited elements required for the unit occupants to access the unit C. the common elements and limited elements D. the common elements

**D.** the common elements

**The right of an insurer to collect from a third party, usually the owner, is called** A. subrogation B. arbitration C. mediation D. litigation

**A.** subrogation

**In a condominium association, ______ of the total voting interests or six unit owners—whichever is the greater—may petition the ombudsman to appoint an election monitor to attend the annual meeting** A. 15% B. 51% C. 75% D. 33%

**A.** 15%

**If a lien is filed against a unit owner for unpaid assessments, and the unit owner pays in full, the association _must_ send the unit owner a(n)** A. apology to the unit owner B. intent to file a foreclosure C. satisfaction of lien D. bill for attorney’s services

**C.** satisfaction of lien

**The term “common expenses” includes** A. fees incurred for maintenance, operation and repair of association property B. greens fees for golf course communities C. assessments paid by owners D. A and B

**A.** fees incurred for maintenance, operation and repair of association property

**In order to be eligible for insurance under CPIC, a community must** A. meet certain requirements set forth by the state of Florida B. not have been offered a valid offer of coverage from an authorized private insurer C. have had significant damage from hurricanes in the past D. A and B

**D.** A and B

**In an association, the common elements** A. can be sold separately from a unit. B. are considered to be everything inside the units’ walls. C. are co-owned by all of the unit owners. D. include patios and balconies.

**C.** are co-owned by all of the unit owners.

**A condominium Board may install solar collectors, clotheslines, or other energy efficient devices on association property** A. with a 75% vote by the owners B. without a vote by the owners C. with a plurality of voting interests present at the Annual Meeting D. with the approval of the committee that studied the issue

**B.** without a vote by the owners

**Under Florida statutes, condominium and cooperative associations are required to include a line item in proposed budgets to fully fund** A. elevator and pool maintenance B. access for handicapped members, tenants and guests C. security D. reserves

**D.** reserves

**The association’s fire and casualty insurance excludes all except** A. drapes, carpets and other floor coverings B. water heaters and water filters C. liability for injury at an owner’s unit D. built-in cabinets and countertops

**C.** liability for injury at an owner’s unit

**The amount paid by either the owner or the association for losses before the insurance company begins to pay for losses is called the** A. principal B. deductible C. co-pay D. premium

**B.** deductible

**In the case of construction on timeshares, the contractor** **intending** **to place a construction lien must first prove that** A. the work was approved by a majority of the timeshare owners B. the supplies used were paid for C. every timeshare owner was informed of the work to be done D. the workers involved were paid

**C.** every timeshare owner was informed of the work to be done

**During a declared state of emergency, the** **actions of** **the Board of Directors are taken for which purposes?** A. to mitigate further damage B. to protect the health and safety of unit owners and occupants C. to make emergency repairs D. all of these

**D.** all of these

**Community Association Managers must be licensed by the** A. Department of Business and Professional Regulation B. Division of Florida Condominiums, Timeshares and Mobile Homes C. Florida Division of Real Estate D. Florida Community Association Managers Association

**A.** Department of Business and Professional Regulation

**Ordinance or Building Law insurance covers** **costs** **of reconstruction after a loss that result in all of these except** A. increased cost of demolition B. increase in value C. increase in cost of code compliance D. increase in cost of construction materials

**B.** increase in value

**For a timeshare, a purchaser or their agent must receive access to books and records within _____ days of a written request.** A. 7 B. 10 C. 14 D. 30

**A. 7**

**Preventive maintenance, safety rules** **and** **financial know-how are all part of** A. protecting the assets of the association. B. assuring a good lifestyle for unit owners. C. loss control procedures. D. all of these

**D.** all of these

**When it does not specifically harm an individual and is in the best interest of the owners as a whole, then the Board can grant, modify, or move \_\_\_\_\_\_\_\_\_\_\_\_\_.** A. common elements B. units C. easements D. rule modifications

**C.** easements

**An umbrella policy offers** A. increased coverage due to water damage B. excess liability coverage C. policies in one place for all forms of insurance needed D. protection of buildings from windstorms

**B.** excess liability coverage

**Within 21 days of completing or receiving \_\_\_\_\_\_\_, but no more than 120 days after the end of the fiscal year, the association must mail each owner a copy or a notice that a copy of this is available without charge.** A. an amendment to the documents B. the budget C. the financial report D. the election results

**C.** the financial report

**For condominiums and cooperatives, the election packet mailed to each voting interest must include** A. printed ballot B. small envelope for each ballot and large return envelope C. candidate information sheets, if available D. all of these

**D.** all of these

**To qualify for a flood insurance policy through the NFIP, the municipality or county must be accepted in the program managed by** A. FEMA B. NIMC C. the State of Florida D. FDIC

**A.** FEMA

**If the Board of Directors disputes a recall, it has five days to file a petition for ___________ with the Division.** A. a recount B. verification C. arbitration D. a new election

**C.** arbitration

**Which of the following _can_ run for the Board of Directors?** A. a member who is 90days or more delinquent in assessments B. a member who committed a felony but whose rights were restored 7 years ago C. a co-owner of a unit with a current Board member whose term will not expire for a year, when there are enough other candidates to fill Board vacancies D. a member whose voting rights have been suspended

**B.** a member who committed a felony but whose rights were restored 7 years ago

**Within 90 days of the members being entitled to elect a majority of the Board, the developer, at the developer’s expense, must turn over\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.** A. building plans B. all permits applicable to the properties C. all of the property and official records to the association D. all of these

**D.** all of these

**Silver Oaks Homeowners’ Association hires a management firm to assist their association. In its proposed contract with the co-op, the management firm fails to indicate a financial relationship with the developer. What is the result?** A. The management firm could face disciplinary action. B. The contract cannot be enforced. C. If the contract has an indemnification clause, the management firm can be held harmless. D. A and B

**D.** A and B

**A fine levied by the association cannot \_\_\_\_\_\_\_\_.** A. be more than $50. B. become a lien. C. cannot total more than $750. D. be levied against a tenant.

**B.** become a lien.

**If a unit owner holds more than one voting interest, his/her ballots should be placed in** A. one of the smaller envelopes included with voting materials B. the larger envelope to be mailed to the association C. one smaller envelope for each ballot, then placed in the larger envelope D. an 8-1/2” x 11” envelope

**C.** one smaller envelope for each ballot, then placed in the larger envelope

**In order for a security guard to carry a firearm, what licensure must they have?** A. Class A B. Class G C. Class D D. B and C

**D.** B and C

**Windstorm insurance is often purchased through CPIC because** ## Footnote A. it has the lowest premiums B. it has the best claim service C. there are few other insurance companies in Florida that offer it D. it’s available online with a one-page application

**C.** there are few other insurance companies in Florida that offer it

**If pavement will have to be resurfaced in three years at a cost of $24,000, the amount needed for deposit in the pavement resurfacing reserve account is _________ annually.** A. $24,000 B. $6,000 C. $8,000 D. $7,000

**C.** $8,000

**A condominium or cooperative voting interest must receive the First Notice of Elections _____ days before the meeting at which elections will be held.** A. 40 B. 60 C.45 D. 14

**B.** 60

**When there is a budget surplus at the end of the year, the surplus can be used in which of the following ways?** A. applied to next year’s budget to reduce assessment B. applied to reserves C. paid out equally to owners D. A and B

**D.** A and B

**Multi-phase condominiums must have ________ budgets for each condominium.** A. separate B. commingled C. audited D. annotated

**A.** separate

**Most community associations are formed as non-profit corporations, however, they still must** A. file a notice of intent with the State of Florida B. file with the IRS annually C. file returns with both the state and the IRS, and pay taxes if due D. none of these

**C.** file returns with both the state and the IRS, and pay taxes if due

**In a condominium, when the owners have the titles to 15% of the units, they are entitled to elect no less than _______ of the directors.** A. half B. 1/3 C. 2/3 D. all

**C.** 2/3

**When existing improvements are made to a rental property and a developer intends to convert it to a cooperative, tenants must receive a written notice of such intent. A tenant having a remaining rental period of _______ days or less may cancel the rental agreement upon giving 30 days’ notice to the developer.** A. 180 B. 60 C. 90 D. 270

**A.** 180

**An association’s predetermined disaster plan would most likely include all _except_** A. shutting down elevators B. searching for survivors C. shutting off electricity D. shutting off water supply

**B.** searching for survivors

**Most community association governing documents** A. do not require members of the Board of Directors to be unit owners B. require board members to be owners only if they are compensated C. require members of the Board of Directors to be members of the association D. none of these

**C.** require members of the Board of Directors to be members of the association

**“Religious organizations, associations, societies, or nonprofit institutions are not prohibited from selling, renting, or occupying any dwelling which they own or operate for other than a commercial purpose to persons of the same religion or from giving preference to such persons, \_\_\_\_\_\_\_\_\_\_\_\_.” Which phrase best completes this statement?** A. because they are exempt from the Fair Housing Act. B. unless the association pays taxes. C. unless membership in the religion is restricted based on race, color, or national origin. D. unless a person with a physical handicap is rejected.

**C.** unless membership in the religion is restricted based on race, color, or national origin.

**An association manager’s most important tool when dealing with a Board and association owners is** A. an understanding of the financial report B. good communication skills C. forming close friendships with board members D. a dynamite website about your management firm

**B.** good communication skills

**Board vacancies can occur due to** A. recall B. resignation C. automatic (director moves away or passes away) D. all of these

**D.** all of these

**Candidates for the Board of Directors in a condominium or cooperative** A. nominate themselves by sending a letter of intent B. may provide an information sheet about themselves to be included in election packets C. A and B D. are nominated by a search committee

**C.** A and B

**During a transition to a cooperative, the tenants who are not purchasing a unit in the cooperative but are staying on for a period as renters** A. are not allowed to use any of the amenities added by the developer B. must pay into a special assessment account while they still reside on the property. C. have the same rights, privileges and services as purchasers. D. are not allowed to speak to prospective purchasers about the property.

**C.** have the same rights, privileges and services as purchasers.

**The managing entity of a timeshare, which may be a Board of Directors, must maintain copies of all records, data, and information supporting the processes, analyses, procedures, and methods used to reserve accommodations of the timeshare plan for a period of\_\_\_\_\_ years from the date they make the determination.** A. 3 B. 7 C. 10 D. 5

**D.** 5

**A purchaser of a timeshare, or their agent, must receive access to books and records within ____ days of a written request.** A. 10 B. 5 C. 7 D. 30

**B.** 5

**Homeowners’ Association members other than the developer are entitled to elect ___________ of the Board of Directors three months after 90% of the parcels in all phases of the community have been conveyed to the owners—unless the documents provide for an earlier date.** A. all members B. all but one member C. at least a majority of members D. two-thirds of the members

**C.** at least a majority of members

**Which is not typically one of the governing documents for a cooperative association?** A. Declaration B. Stock Certificates C. Proprietary Lease D. Bylaws

**A.** Declaration

**When determining the status of a worker—employee or independent contractor—the person is most likely an employee if** A. the worker does not provide a social security number to the association B. the worker decides when and how he or she will do the work C. the employer retains the right to state how and when the work will be performed D. the worker structures his or her own time

**C.** the employer retains the right to state how and when the work will be performed

**When the developer first creates a cooperative association, the Board of Directors is appointed by\_\_\_\_.** A. the Division of Condominiums, Cooperatives and Timeshares B. election by the shareholders C. the developer. D. the ombudsman.

**C.** the developer.

**A member of the Board of Directors may be recalled by a vote of** A. 10% of the voting interests B. 20% of the voting interests C. a majority of all the voting interests D. 75% vote of the voting interests

**C.** a majority of all the voting interests

**When electronic voting is used to elect directors, which of the following must be in place?** A. owners must be able to opt out B. there must be a method for the program to identify each voter; votes must be secret C. the voter must receive a receipt for his or her vote D. all of these

**D.** all of these

When existing improvements are made to a rental property and a developer intends to convert it to a cooperative, tenants must receive a written notice of such intent. If a tenant has resided in the existing improvements for at least 180 days prior to receiving the notice, the tenant has the right to extend their lease by _______ days. A. 180 B. 90 C. 270 D. 60

**C.** 270

**For HOAs incorporated after December 31, 2007, and all condominium associations, the developer must provide the association with \_\_\_\_\_\_\_\_\_of the association’s funds from the time of inception to the date of turnover, at the developer’s expense.** A. a compiled statement B. an audit C. a list D. a review

**B.** an audit

**Copies of the final budget for timeshare properties 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. 15 B. 60 C. 90 D. 30

**D.** 30

**At the time a condominium is turned over to the association by the developer, an architect’s or engineer’s \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_must be provided by the developer attesting to the required maintenance, useful life, and replacement costs of certain common elements listed in the statute.** A. estimate of repair costs B. turnover inspection report C. declaration of amenities D. certification of examination

**B.** turnover inspection report

**When there is a vacancy on the board for any reason, the vacancy is filled by** A. holding a special elections meeting B. waiting until the Annual Meeting and voting in a new director C. appointment by the Board D. appointment by the ombudsman

**C.** appointment by the Board

**If the number of directors present for a quorum for a Board of Directors meeting is not spelled out in the documents, Florida law requires it to be** A. a majority of the directors present B. a majority of directors present in person or on speakerphone C. a majority of directors present in person or by proxy D. A and B

**D.** A and B

**The amount of a fidelity bond must cover _____________ funds that will be in the custody of the association or its management agent at any one time.** A. the median amount of B. the amount of reserve C. the maximum amount of D. the average balance of

**C.** the maximum amount of

**\_\_\_\_\_\_\_\_\_\_\_ are the governing document that lays out how the affairs of the association will be regulated and managed.** A. policies B. bylaws C. articles of incorporation D. rules and regulations

**B.** bylaws

**Employees of a management firm and/or a community association** A. must submit a W-2 form B. must supply a Social Security card or Green Card C. are subject to withholding D. all of these

**D.** all of these

**In a cooperative, the legal title of units is vested in** A. the owners B. the cooperative C. the association D. none of these

**B.** the cooperative

**Committee Meetings are open to members and require _____ notice.** A. 24 hours B. 14 days C. 7 days D. 48 hours

**D.** 48 hours

**Which does NOT need to be included in the minutes of a membership or board meeting?** A. time and place of the meeting B. names of directors and owners present C. motions made D. a record of votes and abstentions

**B.** names of directors and owners present

**An insurance appraisal is used primarily to determine** A. the dollar amount of insurance the association should carry B. the value of association property C. how an association can minimize its risks D. whether the association qualifies for CPIC or NFIP

**A.** the dollar amount of insurance the association should carry

**For condominiums, association Board members may serve staggered terms of no more than _______ if the governing documents permit.** A. one year B. three years C. two years D. four years

**C.** two years

**An easement of support in every portion of a unit which contributes to the support of a building** A. is a shared element by those who live in the building B. is a common element C. is a limited common element D. none of these

**B.** is a common element

**If the documents do not state the number of directors, in** **a HOA****, there must be at least\_\_\_\_\_ directors. In a co-op or condominium, there must be at least \_\_\_\_\_, unless there are five or fewer units, in which case there must be three directors.** A. three…five B. five…three C. four…six D. four…five

**A.** three…five

**An association with annual revenues of less than $150,000 or with fewer than 50 parcels/units is required to prepare.** A. an audited financial report B. a compiled financial report C. a report of cash receipts and expenditures D. a reviewed financial report

**C.** a report of cash receipts and expenditures

**If a community association fails to file an annual report with the State of Florida by May 1 (for the preceding year) the association** A. technically ceases to exist B. cannot be awarded attorney or court costs C. cannot be sued D. A and B

**D.** A and B

**The Ombudsman’s office was created _primarily_ to** A. attend all Annual Meetings and monitor election procedures B. monitor and review procedures, disputes and complaints to avoid litigation C. encourage and facilitate voluntary meetings between complainants D. B and C

**D.** B and C

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State Practice Exam #2 Flashcards

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