Florida Lcam Test Preparation- Sample Practice Test

Front 1

Cost Conscious Condominium is presently preparing their annual budget. Expenses on the proposed budget are to be listed by:

Back 1

Account and Classification

Front 2

Kathryn Stifspine, a cooperative shareholder, becomes deliquent in payment of her monetary obligations to the association. The association may:

Back 2

Demand that the tenant occupying her home pay future monetary obligations for assessments due from Kathryn to the association and make Kathryn aware of this demand.

Front 3

A majority of the quorum at a membership meeting of a community association may vote to _________ the collectino of a reserve for a roof replacement costing an estimated $21,470.

Back 3

Waive

Front 4

Members of a condominium or cooperative association must be provided at least how many days' notice of a meeting where assessment will be established.

Back 4

14 Days

Front 5

What percentage of the voting interest in a condominium association must petition the Board to reconsider the newly adopted budget?

Back 5

10%

Front 6

Reserve funds when established and calculated using the separate or straight line method:

Back 6

May be used only for the purpose for which they are collected unless otherwise approved by the membership

Front 7

Before determining the individual cooperative assessments, sums generated by other revenue sources should be ________ by the board.

Back 7

Deducted.

Front 8

There is no mention of the collection of asssessments in the Highroller Cooperative documents. Florida law requires cooperative shareholders' owners assessments to be collected at least every:

Back 8

Three months

Front 9

When Bob Bad-Credit's assessment become deliquent, the association may record a _______ to protect its interest

Back 9

Claim of Lien

Front 10

Owner Sam Smith is considering selling his unit in the Lake Front Condominium. He makes a request to the board to verify all assessment amounts presently outstanding on his unit. Once received, the assessment certificate:

Back 10

May be presumed to be accurate by a purchaser or a mortgagee.

Front 11

Heavenly Rest Condominium Association has 80 units and receipts of $175,000 per year. Is the following True or False- The association must comply with the special accounting requirements and provide compiled financial statements?

Back 11

TRUE

Front 12

Ms. Nocredit's community association assessment account is deliquent. The Florida Law-Abiding Homeowners' Association may file a claim of lien for the deliquent assessments after providing her with how many days notice of intent to file lient?

Back 12

45 Days

Front 13

Condominium associations having annual receipts of at least $300,000 but less than $500,000 must make available to unit owners which type of financial statement unless waived?

Back 13

Reviewed

Front 14

All associations _____________________ to file an annual income tax return.

Back 14

Are Required

Front 15

Joe Tighwad, a condominium board member, is always slow to pay his monetary obligations to the association. If he becomes more than ______ deliquent, he will automatically become removed from the Board.

Back 15

90 Days

Front 16

Chapters 718 & 719 FS, required the board-adopted annual budget include reserves for which of the following?:

1. roof replacement and payment resurfacing

2. building repainting

3. seal coating and restriping all asphalt areas that currently costs $8,000.00

4. replacement of all the light fixtures and poles at six tennis courts that currently cost $18,000

Back 16

1, 2, & 4 above

Front 17

When estimating the reserve requirements for its annual budget, the Villas Condominium Association Board must consider:

Back 17

Estimated current deferred maintenance expense or replacement cost of the reserve component and its estimated remaining useful life.

Front 18

The budget of the community association

Back 18

May be approved by the membership or board as determined by the community documents.

Front 19

To reconsider the budget of the Over-Spend Condominium, what applies?

Back 19

The original budget must have been board-approved and the assessment for operating expenses must be greater than 115% of the prior year's assessment for operating expenses.

Front 20

Big Bucks Cooperative collects thousands of dollars of rental fees for use of their clubhouse with the Bubbling Springs Fountain. The association can use the money:

Back 20

Only to reduce the assessment of all unit owners.

Front 21

It is best for the non-profti association of the Mightier than Thou Condominium to use Section 528 of the IRS Code because:

Back 21

Reserves for the replacement of capital improvements and deferred maintenance will not be taxed.

Front 22

A condominium association's fiscal year-end cash report:

Back 22

Must include a summary of the association's reserves and disclose the amount necessary to fully fund each component using the straight line method of calculation.

Front 23

When the board of Only Yours Condominium decides to give one resident unit owner a reduction of the next assessment, the Board must:

Back 23

Provide a reduction to all unit owners.

Front 24

The requirement to have financial statements prepared at the community association's fiscal year-end would apply to:

Back 24

An Association with a $175,000 budget

Front 25

In a condominium association, when reserves are calculated on the separate analysis or straight-line method, approval to use reserves for purposes other than originally intended requires:

Back 25

Approval of the majority of those present at a meeting of the membership of the association.

Front 26

In a condominium or cooperative, what budgetary line items would be excluded from the calculations used in determining the percentage of budget increase for purposes of determining the 115% increase in operating assessments?

Back 26

Reserves for capital improvements.

Front 27

Mildstone Club, a homeowners' association has extensive common areas. The association may transfer its real estate tax obligations on the common areas to the parcel owners by applying to the:

Back 27

County Property Appraiser's Office

Front 28

Which of the following should determine whether the budget at a community association is adopted by the membership or a vote of the board of directors?

Back 28

The association documents.

Front 29

In most circumstances, the power to make assessments belongs to the:

Back 29

Association's Board of Directors

Front 30

A ____________ assessment is levied to cover expenses anticipated to exceed the annual budget.

Back 30

Special

Front 31

The best way to notify unit owners of the due date and deliquency date of assessment is to:

Back 31

Include the dates with assessment notices.

Front 32

In a homeowners' association, the requirements for formal financial statements may be waived on an annual basis by:

Back 32

A majority of the voting interest present at a duly called meeting of the membership.

Front 33

A claim of lie filed on a unit, parcel or share, must be recorded with the:

Back 33

Clerk of the Circuit Court

Front 34

In condominium and cooperative associations, claims of lients are effective from the time of recording for a period of

Back 34

One Year

Front 35

If the Board of Directors of a condominium or cooperative does not give 30 days' written notice of its intention to foreclose on a unit, the association

Back 35

Waives its rights to attorney's fees

Front 36

Unless bylaws state otherwise, the Board must provide a complete financial report to all unit owners within _______________ days of the end of a cooperative's fiscal year

Back 36

60

Front 37

In a community association, the responsibility to keep a record of unit assessments rests with the:

Back 37

Board of Directors

Front 38

When a community association receives a request for a certificate of assessment, the Board must deliver the certificate within ______ days.

Back 38

15

Front 39

Homeowners' Associations having annual reports of at least $300,000, but less than $500,000 must, unless waived by vote of the membership, make available to unit owners:

Back 39

Reviewed financial statements.

Front 40

A condominium association requiring audited financial statements will have receipts of at least:

Back 40

$500,000

Front 41

Each community association must file an annual corporate report on forms setting forth, among other information, the corporate name, address of the principal office of the association, and corporate federal tax identification number. The report and a fee must be filed with:

Back 41

Florida Department of State

Front 42

Property taxes on the common property of a condominium

Back 42

Are assessed against individual units

Front 43

If a cooperative maintains limited common areas at the expense of only those owners entitled to use them:

Back 43

The budget shall contain a separate schedule of expenses pertaining to these elements.

Front 44

If a condominium association wants to provide communication services, information services, internet services or cable TV service:

Back 44

The costs can be a common expense if allowed in the documents or if the contract designates it a common expense.

Front 45

Community association contingency funds:

Back 45

May only be included in the operating portion of the budget.

Front 46

What is true with regard to condominium or cooperative reserves?

Back 46

A reserve account in the proposed budget is required for any item in excess of $10,000

Front 47

The Broadmoe Condominium Association property insurance policy protects the association from damage to all except:

Back 47

Electrical fixtures within an individual unit.

Front 48

The cooperative unit owner is responsible for providing insurance that will cover:

Back 48

The personal property owned by the shareholder.

Front 49

Insurance in Florida is Regulated By:

Back 49

Florida Department of Financial Services.

Front 50

The Peaceful Times Mobile Home Park is purchased by the residents. A cooperative association is formed with a budget of $253,000. A fidelity bond is required of thsoe controlling association funds in the minimum amount of:

Back 50

The maximum amount of funds that may be in the association account at any one time.

Front 51

The insurance provided by the condomimum association must cover:

Back 51

Initially installed condominium property or replacements of like kind and quality and alterations or additions made to the condominium property.

Front 52

The type of insurance that protects the community association if a child is seriously injured on the playground is:

Back 52

Liability

Front 53

A condominium association, if authorized in its recorded governing documents, may impose a transfer fee upon the sale, lease, or rental of a unit that may not exceed:

Back 53

$100.00

Front 54

A community association may require a contractor to provide a performance bond for which of the following reasons?

Back 54

To protect the association in the event the contractor does not complete the work.

Front 55

A homeowners' association has six employees but does not provide workers' compensation insurance. What is the minimum fine that may be imposed by the state for failure to provide the required workers' compensation insurance?

Back 55

$1,000

Front 56

Each of the following statements are correct regarding flood insurance:

Back 56

1. Flood insurance is available to anyone wishing to purchase property located in a community participating in the NFIP.

2. The National Flood Insurance Program is administered by FEMA.

3. Flood insurance is required on any property located in a Special Flood Hazard Area that is security for financing from a federally regulated financial institution.

Front 57

The Oak Hill Cooperative suffers fire damage to the second floor halls and to the elevator. Its insurance carrier agrees to pay all but $5000 of the damage specified in the policy. The amount the association must pay is known as the:

Back 57

Deductible.

Front 58

Any maintenance or management contract entered into by a condominium association must identify:

Back 58

The cost of any services provided, any relationship with the developer, & the serices provided.

Front 59

The directors of the Best Way Community Association are not properly maintaining the grounds of the association. The residents can:

Back 59

Sue the Board

Front 60

A violation of a rule of an association may not be enforceable if the Board doesn't act in a timely manner to correct the situation based on the principal of:

Back 60

Equitable Estoppel

Front 61

The state agency charged with enforcement of the cooperative statute and to resolve disputes involving associations and developers is the:

Back 61

Division of Florida Condominiums, Timeshares, and Mobile Homes

Front 62

What may be imposed against a community association member if authorized in the recorded governing documents?

Back 62

The addition of a late charge on a past-due assessment.

Front 63

Pooley Roundback returns to his unit in Caring Hope Condominium Association and discovers water from a leaking pipe has damaged one of his walls, including the wallpaper and carpet. He is concerned about the financial responsbility for the repair. He asks the Board who will pay for the damage. Which of the following is correct regarding payment?

Back 63

The association's insurance policy will cover the damage to the common elements less any deductible that will be covered by the association, and Pooley and his insurance policy will be responsible for the damage to the wallpaper and carpet.

Front 64

Jon Dogood is the manager of the Muchused Community Association. The owners constantly have guests for pool parties. Jon decides it would be appropriate to charge a fee for the guests to use the pool. This fee:

Back 64

Is illegal because the manager does not have the power to impose a fee.

Front 65

The pennypincher Association Board of Directors is examining the requirements for safety equipment for the small pool area. Which of the following statements is most correct regarding the safety equipment for pools operated by community associations in the State of Florida?

Back 65

The association must have at least one 16ft-length shephards hook and at least one 18-inch diameter safety ring with rope attached to the pool area.

Front 66

Security Guards are licensed by:

Back 66

The Department of Agriculture and Consumer Services.

Front 67

Which type of directors and officers liability policy will cover any claim made while the policy is in force?

Back 67

The claims made policy.

Front 68

Mr. Hook Orbycrook signs an agreement to purchase a cooperative unit of the Not Outfoxed Cooperative. Prior to the sale become finalized, the Board must approve the potential buyer. Upon investigation, it is discovered that the purchaser has owner other cooperative apartments has not made his assessment payments, and that he also had had several evictions. The board rejects his application to purchase. What applies?

Back 68

The board has this right as long as the community documents provide for a review by the Board and their action was for a lawful purpose that is included in the governing documents.

Front 69

Which of the following statements is true with regard to Security guards?

Back 69

Security Guards have no police powers.

Front 70

Persont that apply pesticides within residential living units must be certified by:

Back 70

The Department of Agriculture and Consumer Services.

Front 71

A resident of the Highstory Condominium is injuired when the elevator stops abruptly. What action must the association take?

Back 71

Notify the DBPR Division of Hotels and Restaurants within five days of the accident.

Front 72

The Condominium Association desired to enter into a three-year contract for lawn service that will cost the association $14,000 per year. The total annual budget for the association is $160,000. Which is true?

Back 72

The Board is required by statute to solicit bidgs for this contract (>5%)

Front 73

What notice is required to be provided to the membership of a Board Meeting of a community association at which a non-emergency special assessment will be considered?

Back 73

14 Days

Front 74

Tommy DoItWrong has placed a barbeque grill on his cooperative balcony in violation of the bylaw provisions prohibiting this. The Board has provided notice of the violation, allowed Tommy a hearing before other unit owners who agreed with the Board and Tommy still has the grill on his balcony. What action may the board take?

Back 74

The Board may fine Tommy a maximum of $100/day of continuing violation up to a maximum of $1,000.

Front 75

If there is a dispute between a condominium association and an owner, what is the first step in resolving the dispute?

Back 75

The parties must proceed to mandatory non-binding arbitration prior to seeking court action.

Front 76

Sandra Yeller, a condominium unit owner, is investigating the purchase of property insurance. This policy:

Back 76

Would not cover condominium property within the unit.

Front 77

Which of the following would not be covered by the condominium association's property insurance policy?

Back 77

A lighting fixture in a unit.

Front 78

After purchasing the mobile home park, the residents form a community association and hire a paid manager. The manager must be licensed under Part VIII of Chapter 468 if the budget of the association exceeds:

Back 78

$100,000

Front 79

A type of joint ownership of real estate where legal title is not vested in the individual, but the individual receives the right to occupy a unit, is a :

Back 79

Cooperative

Front 80

The type of community association that permits individual units to be owned and occupied by different people during the year is a:

Back 80

Time-share property.

Front 81

Appurtenances in a condominium or cooperative include rights of:

Back 81

The use of and access to all easements, membership in the association, and assigned percentage of ownership in the common areas and any club membership rights.

Front 82

Any person or firm licensed under Part VIII of Chapter 468, Florida Statutes, is considered:

Back 82

Capable of performing community association management services.

Front 83

A homeowners' association where membership in the association is mandatory for all owners and the association has a lien right which is not a condominium or cooperative is regulated by provisions of which Florida Statute?

Back 83

720

Front 84

A Board member of a condominium or cooperative association may not accept anything of value from anyone providing goods or services to the association for his/her benefit or the benefit of his/her family except:

Back 84

For items at trade fairs or educational programs.

Front 85

The document that creates an elaborate set of covenants and restrictions that establish basic rights and responsbilities of homeowners' association members, residents and guests is the:

Back 85

Declaration

Front 86

Florida's Condominium Act and the Not-for-profit Act require which document to establish procedures for carrying out the day-to-day operations of the association?

Back 86

Bylaws

Front 87

The Condominium Act specifies that which of the following are reserved for the exclusive use of certain owners?

Back 87

Limited Common Elements

Front 88

The community association statutes require that each association's governing documents be recorded with which of the following to be effective?

Back 88

The clerk of the circuit court

Front 89

The Condominium Act gives which of the following the power to enforce and ensure compliance with this law?

Back 89

The Division of Florida Condominiums, Time Shares, and Mobile Homes

Front 90

When an existing rental property is converted to a condominium, each tenant has:

Back 90

The right to extend his or her lease

Front 91

Amendments in the homeowners' association declaration become effective when:

Back 91

Recorded with the clerk of the circuit court

Front 92

The Bountiful Gardens Cooperative wants to remove the swimming pool to save money.

Back 92

The association should first check the language of the declaration as it applies to material modifications.

Front 93

The owner-controlled Board of the Flamingo Condominium constructs a storage building between the pool and Mrs. Lufkin's unit. Mrs. Lufkin complains to the manager and demands its removal. After several weeks of inaction, Mrs. Lufkin paints the building pink. What applies?

Back 93

Easements granted to the unit owners in the declaration prohibit this obstruction of view.

Front 94

Rules adopted by the Division of Florida Condominiums, Time Shares, and Mobile Homes are incoporated into:

Back 94

The administrative code

Front 95

In a mandatory homeowners' association, the board must provide the members notice of a board meeting at least:

Back 95

48 Hours in advance

Front 96

The authority that makes it unlawful to discriminate against any person in the terms or conditions of the sale or rental of a residence because of race, color, national origin, sex, handicap, religion, or familial status is the:

Back 96

Fair Housing Act

Front 97

The property owned by all of the owners in a condomium is referred to as:

Back 97

The common elements

Front 98

Which of the following mandatory homeowner's associations would not be subject to regulation by the special provisions of Chapter 720, FS?

Back 98

An association regulated by Chapter 718, FS.

Front 99

Which of the following properties could be exempt from the prohibitions against discrimination based on familial status?

Back 99

A community with all of the residents age 62 or over.