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99 Cards in this Set

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

Account and Classification

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

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.

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.

Waive

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

14 Days

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

10%

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

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

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

Deducted.

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:

Three months

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

Claim of Lien

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:

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

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?

TRUE

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?

45 Days

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?

Reviewed

All associations _____________________ to file an annual income tax return.

Are Required

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.

90 Days

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

1, 2, & 4 above

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

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

The budget of the community association

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

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

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.

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:

Only to reduce the assessment of all unit owners.

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

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

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

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.

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

Provide a reduction to all unit owners.

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

An Association with a $175,000 budget

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:

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

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?

Reserves for capital improvements.

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:

County Property Appraiser's Office

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?

The association documents.

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

Association's Board of Directors

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

Special

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

Include the dates with assessment notices.

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

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

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

Clerk of the Circuit Court

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

One Year

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

Waives its rights to attorney's fees

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

60

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

Board of Directors

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

15

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:

Reviewed financial statements.

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

$500,000

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:

Florida Department of State

Property taxes on the common property of a condominium

Are assessed against individual units

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

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

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

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

Community association contingency funds:

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

What is true with regard to condominium or cooperative reserves?

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

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

Electrical fixtures within an individual unit.

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

The personal property owned by the shareholder.

Insurance in Florida is Regulated By:

Florida Department of Financial Services.

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:

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

The insurance provided by the condomimum association must cover:

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

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

Liability

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:

$100.00

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

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

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?

$1,000

Each of the following statements are correct regarding flood insurance:

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.

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:

Deductible.

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

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

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

Sue the Board

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:

Equitable Estoppel

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

Division of Florida Condominiums, Timeshares, and Mobile Homes

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

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

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?

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.

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:

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

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?

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.

Security Guards are licensed by:

The Department of Agriculture and Consumer Services.

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

The claims made policy.

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?

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.

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

Security Guards have no police powers.

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

The Department of Agriculture and Consumer Services.

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

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

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?

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

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?

14 Days

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?

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

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

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

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

Would not cover condominium property within the unit.

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

A lighting fixture in a unit.

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:

$100,000

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 :

Cooperative

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

Time-share property.

Appurtenances in a condominium or cooperative include rights of:

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.

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

Capable of performing community association management services.

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?

720

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:

For items at trade fairs or educational programs.

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:

Declaration

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?

Bylaws

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

Limited Common Elements

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

The clerk of the circuit court

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

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

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

The right to extend his or her lease

Amendments in the homeowners' association declaration become effective when:

Recorded with the clerk of the circuit court

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

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

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?

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

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

The administrative code

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

48 Hours in advance

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:

Fair Housing Act

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

The common elements

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

An association regulated by Chapter 718, FS.

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

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