Florida Cam Exam

Front 1

A community association is generally defined as real or personal property, owned by two or more entities, which share the responsibility for the costs of maintenance and administration.

Back 1

TRUE

Front 2

Purchasers of a timeshare plan have a ten-day contract rescission period in which to cancel the purchase

Back 2

TRUE

Front 3

Not for profit corporations are exempt from federal income taxes.

Back 3

FALSE

Front 4

A condominium, and a hospital may join together to create a self-insurance pool for windstorm insurance, if approved by the Comptroller

Back 4

FALSE

Front 5

All community associations have identical legal structures

Back 5

FALSE

Front 6

The association must mail a notice for a regular board of directors meeting no less than 48 hours in advance.

Back 6

FALSE

Front 7

If a timeshare property is a condominium, it must comply only with the Condominium Act

Back 7

FALSE

Front 8

The Florida Fair Housing Act prohibits discrimination on the basis of handicap

Back 8

TRUE

Front 9

Compliance with the Construction Lien Law is very technical and can have an impact on title to property. Therefore, the board should always consult with the manager regarding lien issues.

Back 9

FALSE

Front 10

A valid declaration of condominium must contain easements for ingress and egress to all units and the common elements.

Back 10

TRUE

Front 11

The cooperative is created when the articles of incorporation are filed with the DBPR

Back 11

FALSE

Front 12

A reason to purchase in a community association is the diversity of neighbors

Back 12

FALSE

Front 13

The Declaration of Condominium is also called the corporate charter

Back 13

FALSE

Front 14

Civic groups are governed by the Homeowners Association Act

Back 14

FALSE

Front 15

When proposing amendments to the documents, a condominium should insert and underline any new words in the text.

Back 15

TRUE

Front 16

Although the Cooperative Act does not require the recording of amendments with the clerk of the court, the association may wish to consider doing so

Back 16

TRUE

Front 17

A timeshare divides residential property into specific periods that provides owners with exclusive use rights.

Back 17

TRUE

Front 18

Any amendment that proposes to change the proportional percentage by which each condominium member shares in the common expenses or owns the common surplus requires approval of all owners and all holders of liens, unless otherwise provided in the documents as originally recorded.

Back 18

TRUE

Front 19

Appraised value and actual cash value mean the same thing

Back 19

FALSE

Front 20

The developer is exempt from any management responsibilities as long as he controls the board.

Back 20

FALSE

Front 21

Purchasers of a condominium or cooperative re-sale unit have a 3 day period in which to cancel the sales contract.

Back 21

TRUE

Front 22

Limited Common Element is a term used for property owned by a member of an association, but used by all owners

Back 22

FALSE

Front 23

HOAs may join with other community associations to self insure for general liability insurance

Back 23

FALSE

Front 24

A homeowners' association may suspend voting rights if an owner fails to pay regular assessments for ninety days or longer, if that authority is contained in the governing documents

Back 24

TRUE

Front 25

A Condominium will meet notice requirements if it sends an email advising of the meeting to Board members, as long as the notice includes detailed agenda.

Back 25

FALSE

Front 26

The Community Association Living Council reviews, evaluates and advises the DBPR concerning revisions and adoptions of statutes that affect community associations.

Back 26

TRUE

Front 27

Homeowners association member meetings require a quorum of 30% of the total voting interest unless a different number is provided in the bylaws.

Back 27

TRUE

Front 28

The Ombudsman will monitor a cooperative election, if 15% of the total voting interests, or 6 members, whichever is greater, have signed a petition so requesting.

Back 28

FALSE

Front 29

At an annual meeting of an HOA, even if a quorum is not present, the association may conduct the election if it has received ballots from 20% of the owners.

Back 29

FALSE

Front 30

The DBPR Governance Form discusses the role of the condominium board in conducting day to day affairs and the rights of unit owners to attend and speak at meetings, among other things.

Back 30

TRUE

Front 31

Members in a cooperative association may not elect directors by voting in person at the meeting. They must vote by general proxy.

Back 31

FALSE

Front 32

Unit owners wishing to petition the court for a receivership for their condominiums need only mail to other unit owners and post a notice for 14 days

Back 32

FALSE

Front 33

The Board of Directors is the managing entity for a community association

Back 33

TRUE

Front 34

At a condominium election, once the first outer envelope is opened, the association may accept no additional ballots

Back 34

TRUE

Front 35

All community associations are required to have a financial plan that sets the proposed revenues and expenditures of funds for the maintenance and management of association properties

Back 35

TRUE

Front 36

All states require that community association managers be licensed by taking a course and passing an examination

Back 36

FALSE

Front 37

If a community association has a minimum of 50 units, or a budget in excess of $100,000, it must hire a certified Community Association Manager

Back 37

FALSE

Front 38

If an inner envelope contains more than one ballot is contained, neither ballot is valid.

Back 38

TRUE

Front 39

To become a community association manager, a person must be at least 21 years of age.

Back 39

FALSE

Front 40

Unit owners do not have the right to participate in board meetings, unless otherwise provided by the documents

Back 40

FALSE

Front 41

Preventive maintenance is an approach focused on predicting the likelihood of equipment failure, at which time the equipment is repaired or replaced.

Back 41

FALSE

Front 42

An association may compensate a Board member for his board service, if allowed in the bylaws or other documents

Back 42

TRUE

Front 43

In theory, a reserve study may provide the board with guidance on how to keep the association physical assets from deteriorating faster than financial assets increase.

Back 43

TRUE

Front 44

The CAM Council requires that a candidate for community association manager complete a pre-licensure course at least 6 months prior to the date of examination.

Back 44

FALSE

Front 45

Six members of a seven member board of directors resign. The remaining director can appoint others to fill the vacancies

Back 45

TRUE

Front 46

If a board member exercises prudent business judgment, he assures that he understands the requirements of his position and spends sufficient time to properly carry out his functions.

Back 46

TRUE

Front 47

If a condominium has "opted out," the board has delegated its authority to a community association manager or to the DBPR, who/which will make all operational decisions.

Back 47

FALSE

Front 48

Class D refers to continuing education requirements for community association managers

Back 48

FALSE

Front 49

An association of more than 5 units must have no less than 3 directors

Back 49

FALSE

Front 50

In theory, a well maintained property will generally help keep assessments lower

Back 50

TRUE

Front 51

Florida law requires all corporations to have a registered agent and registered office

Back 51

TRUE

Front 52

The board of directors may only remove an officer without cause

Back 52

FALSE

Front 53

An association may only compensate an officer, if he is providing professional services to the association or is a community association manager

Back 53

FALSE

Front 54

It is unnecessary to keep copies of drawings and plans for an association once construction is completed

Back 54

FALSE

Front 55

An association must provide members and non-board members with no less than 7 days notice, if there is no place on the property to post notice. The association may establish a telephone committee to carry out this function.

Back 55

FALSE

Front 56

A proxy in a condominium is valid for a period of up to 90 days after the date of the first meeting for which it was given.

Back 56

TRUE

Front 57

Assessments, membership fees, and maintenance fees are different words that are essentially mean the same thing.

Back 57

TRUE

Front 58

Common expenses for an HOA must include fees to the DBPR.

Back 58

FALSE

Front 59

Deferred maintenance means any maintenance or repair that will be performed less frequently than yearly and which will result in maintaining or extending the useful life of an asset

Back 59

TRUE

Front 60

An association may reduce its contribution to the reserve by the % of owners that are late in paying assessments

Back 60

FALSE

Front 61

John Bowie, President of Boca Chica Condominium, has a 15% interest in Green Growers, a landscape company, with whom Boca Chica is considering doing business. Because he is a minor interest holder, he may vote on this contract at the upcoming Boca Chica meeting.

Back 61

False

Front 62

Reserves are never required in a homeowners' association, unless required by the association's governing documents

Back 62

False

Front 63

A possible example of an emergency in a community association is a broken pipe in the wall.

Back 63

True

Front 64

Unless the governing documents require a membership vote, the board of directors may approve a special assessment.

Back 64

True

Front 65

The DBPR requires that condominiums and cooperatives follow the annual budget to within 10% of each line item. If an association exceeds the line item by more than 10%, it must amend the budget

Back 65

False

Front 66

Condominiums, cooperatives, and homeowners' associations must keep all records for at least seven years

Back 66

True

Front 67

A mobile home is defined as a residential structure, transportable in one or more section, with is 10 body feet or more in width, over 30 body feet in length without a hitch, built on an integral chassis, designed to be used as a dwelling unit or office.

Back 67

False

Front 68

Merger of one or more HOAs under a plan of merger will result in the dissolution of all HOAs. The owners will be required to create new documents, within 90 days of the merger vote.

Back 68

False

Front 69

When an owner of a community association sells his unit, the association must reimburse him the amount of reserves he has paid which have not been expended, plus a proportional share of any budget surplus.

Back 69

False

Front 70

Bylaws are procedural rules created to interpret a declaration, articles or leasehold agreement.

Back 70

False

Front 71

In a condominium created after April 1, 1992, ownership interests must be based on either the percentage of square footage or divided equally among all units.

Back 71

True

Front 72

Associations should contact a qualified attorney when filing a lien

Back 72

True

Front 73

Liability for assessments may be avoided by waiver of use

Back 73

False

Front 74

The Cooperative Act requires that the Declaration include provisions for the recall of directors

Back 74

False

Front 75

A timeshare owner may be locked out of his/her unit if he/she are more than 60 days late in payment of an assessment and have been given 30 days notice of that late payment.

Back 75

True

Front 76

Cash basis accounting is more accurate than accrual basis accounting

Back 76

False

Front 77

The information provided in the annual corporate report must be accurate as of the date the report is executed.

Back 77

True

Front 78

An association collections policy should consider how the association will treat partial payments of assessments from owners.

Back 78

True

Front 79

It is the responsibility of manager to protect, maintain, and enhance the value of the association's property

Back 79

True

Front 80

An association may charge late fees of $25 or 5%, whichever is less, if permitted in the documents, but only for assessments paid after the 10th of the month.

Back 80

False

Front 81

FNMA and FHLC have significant impacts on association insurance programs.

Back 81

True

Front 82

The responsibilities of an owner of a single family home and an HOA parcel are substantially the same.

Back 82

False

Front 83

An association may reduce its insurance premiums by lowering the deductible level for specific items

Back 83

False

Front 84

Among other powers, F.S. 617 grants the association the authority to borrow money and purchase and lease property.

Back 84

True

Front 85

The individual owner's property insurance usually provides "general liability" coverage in case someone is injured within the owner's unit.

Back 85

True

Front 86

Windstorm insurance is available through the federal government.

Back 86

False

Front 87

The Condominium Act requirement that "persons who control or disburse funds" must be covered by a fidelity bond only includes those persons authorized to sign checks.

Back 87

False

Front 88

If the Declaration of Covenants & Restrictions is in conflict with the HOA Act, the Declaration will always take precedence.

Back 88

False

Front 89

An association does not need to annually rebid a contract if it includes a clause allowing cancellation with 30 days notice.

Back 89

True

Front 90

A minimum of ninety percent of the owners at a duly called meeting of a condominium is required to cancel a contract made by the developer prior to turnover of control.

Back 90

False

Front 91

The Condominium Act permits the board to enter into a bulk cable television contract and assess the units on a per-unit basis, unless otherwise provided for in the documents

Back 91

True

Front 92

A pool which serves no more than 32 condominium units that are not operating as a public lodging establishment may apply to the Department of Health for an exemption from supervision.

Back 92

True

Front 93

If a contractor does not pay a subtractor for work performed in an association, the subcontractor may place a construction lien against the association and its owners.

Back 93

True

Front 94

The Fire Marshall is responsible for adopting fire safety rules on new buildings only

Back 94

False

Front 95

DBPR, Division of Building Professionals, oversees the licensure and certification of architects, general contractors, plumbers, and other building trades.

Back 95

False

Front 96

An association may use its handyman perform pest control services, as long as he uses pest control substances approved by the EPA..

Back 96

False

Front 97

If a cooperative owner leases his unit, he relinquishes his right to use common elements to the tenant.

Back 97

True

Front 98

No fine may exceed $1,000 per violation.

Back 98

False

Front 99

A condominium or cooperative association may charge a use fee for the use of the common elements if it is provided for in the governing documents, or if a majority of the association membership approved the use fee.

Back 99

True

Front 100

An HOA owner disputing a fee or assessment or the collection of a fee or assessment must go to arbitration prior to either party taking the matter to court.

Back 100

False