FL CAM License

81. Which of the following do not have to be included on the posted Pool Rules sign? A. Bathing caps must be worn if hair is below shoulder length B. The hours of operation C. A requirement to shower before entering the pool D. No food, drink, or animals in the pool or on the pool deck

A. Bathing caps must be worn if hair is below shoulder length In a minimum of 1" letters, the following rules must be posted and legible from the pool deck: The pool deck is defined as within four feet of the pool curb. No food, drink, glass or animals in pool or pool deck. No glass or animals in fenced pool area (or 50 feet from unfenced pool). Bathing Load: _________________persons. Pool hours: _________a.m. to _____________p.m. Shower before entering. For new or modified pools submitted for plan approval application on or after the effective date of this rule, their posted sign shall add: Do not swallow the pool water.

55. Most budgets are adopted by the ______. A. Board of Directors B. Owners C. Board of Directors and the Owners D. Management

A. Board of Directors The documents will establish whether the budgets are adopted by the members as a whole or by the Board of Directors. Most state that the Board of Directors will set the budget for the coming year.

8. What defines the membership and the voting rights of the Association? A. Corporate Charter B. Declaration of Condominium C. By-Laws D. Rules and Regulations

A. Corporate Charter The Articles of Incorporation, also known as the Corporate Charter, provide the framework for the organization of the association and define its membership and the voting rights of the members.

80. Owners of public swimming pools must obtain a permit from the _____. A. County Health Department B. Department of Health, Division of Environmental Health C. State Department of Health D. City and/or County in which located

A. County Health Department The Department of Health, Division of Environmental Health and the County Health Departments oversee swimming pools in the State of Florida. The DOH administers the program through the County Department of Public Health. All questions regarding authority and licenses refer to the County Health Department.

82. The association manager is spraying the common area walkways for bugs, and an owner asks the manager to spray her kitchen. What should the manager do? A. Decline to spray inside the unit B. Go ahead and spray inside the unit because he is certified by the Division of Commerce C. Spray inside the unit and send her a special assessment D. Spray inside the unit because he has a Class D security license

A. Decline to spray inside the unit If you plan to do it in-house, it is okay to spray your grounds yourself as long as you do not fumigate. It is also all right for the owner of a unit to spray their own unit. But, if it is someone other than the owner, that person must be licensed by the state. Association employees may perform pest control in the common areas but not in an owner's unit.

21. The association has the irrevocable right of access to each unit during reasonable hours for _________. A. Maintenance, repair or replacement of common elements B. Replacement of wall coverings, floor coverings, and appliances C. Inspection for rules violations D. Only with owner

A. Maintenance, repair or replacement of common elements The Condominium Act provides each owner the exclusive possession of his or her unit. The association has the irrevocable right of access to each unit during reasonable hours. Association access is for maintenance, repair, or replacement of any common elements or any portion of a unit to be maintained by the association pursuant to the declaration. It may also be necessary to prevent damage to the common elements or to another unit or units.

64. The Shady Oaks condominium has 299 units and an annual revenue of $303,000.00. Unless the membership votes to change it, what type of financial statement is required? A. Reviewed B. Compiled C. Audited D. Cash report

A. Reviewed An association with annual revenues less than $150,000 or fewer than 50 parcels/units is required to prepare a report of cash receipts and expenditures. All other associations are required to complete a financial statement as listed below unless a majority of the members meet and waive the requirement. The requirements are a compiled, reviewed, or audited statement depends upon the amount of the annual revenues. Compiled: $150,000 to less than $300,0000 Reviewed: $300,000 to less than $500,000 Audited: $500,000 or more

67. Risk retention is sometimes referred to as ________. A. Self Insurance B. Segregation of Exposures C. Indemnification D. Not very advisable

A. Self Insurance RISK RETENTION is sometimes referred to as self insurance and includes current expensing of loss, use of reserve funding to expense a loss, and borrowing for losses is considered a form of retention because the debt has to be repaid out of association income, and represents a depletion of association financial resources.

90. The least used form of management is _____. A. Self management B. Hire a manager C. Management company D. None of the above

A. Self management There are three forms of management. They are, in the order most used, hire a management company, hire a manager, and self-management.

85. Which of the following does not have to be listed in a maintenance contract? A. the maximum number of units to be serviced per day B. Any relationship with the developer C. The services to be provided D. The cost of each service

A. the maximum number of units to be serviced per day All contracts for services and all contracts for purchase, lease or rental of materials for more than one year must be in writing. Any management or maintenance contract with a condominium association must specifically identify the services, the obligations and the responsibilities of management. The agreement must specify the cost of each service, the frequency to be performed, and the number of persons who will be employed to provide the service. If there is any relationship between the developer and management, then that relationship must be disclosed.

45. Which of the following is false. Directors can ________. A. vote by proxy B. vote by voice vote C. vote by secret ballot for officers D. vote by raising their hand

A. vote by proxy Directors cannot vote by proxy. They cannot vote by secret ballot unless voting for officers. The vote of all directors must be recorded in the minutes, except the vote for officers.

76. The definition of "public lodging establishment" includes any unit that is regulary rented for periods of less than _____ days. A. 15 B. 30 C. 45 D. 60

B. 30 Community Associations fall under Chapter 509 if they hold themselves out to the public as a transitory, for profit, sleeping or housekeeping operation. Any business that advertises or lets it be known that guests will be accommodated for a period of less than 30 days and be provided sleeping and/or housekeeping units comes under the statute.

22. For HOAs, members other than the developer are entitled to elect at least one member of the board if at least ____ of all parcels have been conveyed to members. A. 10 percent B. 50 percent C. 30 percent D. Two-thirds

B. 50 percent For homeowner associations, members other than the Developer are entitled to elect at least one member of the board if at least 50% of the parcels in all phases of the community which will ultimately be operated by the association have been conveyed to the members. Members other than the developer are entitled to elect at least a majority of the board of directors 3 months after 90 percent of the parcels in all phases of the community have been conveyed to the owners unless the documents provide for an earlier date.

48. If a proxy is given on May 30th for a meeting on June 13th, when does it expire? A. 30 days after the meeting is scheduled for the first time B. 90 days after the original meeting for which it was issued C. 120 days from when it was signed or mailed, whichever was first D. 90 days after the last meeting when the motion was approved

B. 90 days after the original meeting for which it was issued General and limited proxies are good for only 90 days after the date of first meeting for which it was given.

34. Which is false concerning a secret ballot? A. Ballots shall be placed into an inner envelope. B. Ballots should indicate unit number to ensure double votes are not cast. C. Only one ballot may be placed in an inner envelope. D. More than one inner envelope may be placed in an outer envelope.

B. Ballots should indicate unit number to ensure double votes are not cast. No signatures or other marking are allowed on the ballots, other than the casting of votes, as required. Unit/lot numbers are identified on the outer envelopes for verifying which units/lots have voted.

10. If the governing documents of an association conflict, which of the following is the proper order of priority? A. By-laws, Declaration, Articles of Incorporation, Board Rules and Regulations B. Declaration, Articles of Incorporation, By-laws, Board Rules & regulations C. Articles of Incorporation, Declaration, By-laws, Board Rules and Regulations D. Declaration, Board-approved Rules, Articles of Incorporation, By-laws

B. Declaration, Articles of Incorporation, By-laws, Board Rules & regulations All of the documents should be consistent with each other. Their order of priority is: Declaration of Condominium Articles of Incorporation By-Laws Rules and Regulations

77. Associations operating a public lodging establishment should be aware of Florida Statute 509 which concerns _____. A. Elevator operations B. Fire safety C. Building codes D. Swimming pools

B. Fire safety Any business that advertises or lets it be known that guests will be accommodated for a period of less than 30 days and be provided sleeping and/or housekeeping units comes under the statute. This means they must comply with the regulations for fire safety under the statute.

43. ________ notice is required for a Board of Directors meeting. A. One day B. Forty-eight hour C. Three day D. Twenty-four hour

B. Forty-eight hour Forty-eight hours notice is required for board meetings, longer if the documents require. By-laws may dispense with a notice for regularly scheduled meetings.

6. The Cooperative documents must contain all of following except ________. A. Documentation of each owner B. Identification by unit number/letter C. Recognition of owner D. Definition of the grounds lease

B. Identification by unit number/letter Under Cooperative law, the co-op documents include the Articles of Incorporation and By-Laws, a definition of the grounds lease, the owner's share and membership in the co-op and title or right to use of a unit.

46. For board of directors meetings, notice to owners _________. A. Must be mailed to owners B. Must be posted conspicuously on the property 48 hours in advance C. Can be by telephone or hand delivery D. Must be posted fourteen days in advance

B. Must be posted conspicuously on the property 48 hours in advance Notice to the directors of the board can be by first class mail, by hand delivery, or by telegram and include when and where the meeting will be held. Forty-eight hours notice is required, longer if the documents prevail. A system of noticing for Board of Directors meetings should be instituted so that the membership as a whole is informed of the meetings of the board. You do not have to mail a notice to all of the members of the association. A notice on the bulletin board will suffice and it should be posted continuously and conspicuously for at least two days (48 hours) before the meeting.

56. Condominium assessments must be paid at least _______. A. Annually B. Quarterly C. Monthly D. Weekly

B. Quarterly In condominiums and cooperatives, the law requires that assessments be collected in advance and at least quarterly.

60. Which of the following items do not need to be turned over to the Association by the condominium developer? A. Architect/engineer inspection report B. Total sales income of all units C. A copy of the plans and specifications D. All written warranties still in effect

B. Total sales income of all units The developer must turnover the following items to the association. (a) 1. The original or a photocopy of the recorded declaration of condominium and all amendments thereto. 2. A certified copy of the articles of incorporation of the association. 3. A copy of the bylaws. 4. The minute books, including all minutes, and other books and records of the association, if any. 5. Any house rules and regulations which have been promulgated. (b) Resignations of officers and members of the board of administration who are required to resign because the developer is required to relinquish control of the association. (c) The financial records, including financial statements of the association, and source documents from the incorporation of the association through the date of turnover. The records shall be audited for the period from the incorporation of the association or from the period covered by the last audit. (d) Association funds or control thereof. (e) All tangible personal property that is property of the association, which is represented by the developer to be part of the common elements or which is ostensibly part of the common elements, and an inventory of that property. (f) A copy of the plans and specifications utilized in the construction or remodeling of improvements and the supplying of equipment to the condominium and in the construction and installation of all mechanical components serving the improvements and the site with a certificate in affidavit form of the developer or the developer's agent or an architect or engineer authorized to practice in this state that such plans and specifications represent, to the best of his or her knowledge and belief, the actual plans and specifications utilized in the construction and improvement of the condominium property and for the construction and installation of the mechanical components serving the improvements. (g) A list of the names and addresses, of which the developer had knowledge at any time in the development of the condominium, of all contractors, subcontractors, and suppliers utilized in the construction or remodeling of the improvements and in the landscaping of the condominium or association property. (h) Insurance policies. (i) Copies of any certificates of occupancy which may have been issued for the condominium property. (j) Any other permits applicable to the condominium property which have been issued by governmental bodies and are in force or were issued within 1 year prior to the date the unit owners other than the developer take control of the association. (k) All written warranties of the contractor, subcontractors, suppliers, and manufacturers, if any, that are still effective. (l) A roster of unit owners and their addresses and telephone numbers, if known, as shown on the developer's records. (m) Leases of the common elements and other leases to which the association is a party. (n) Employment contracts or service contracts in which the association is one of the contracting parties or service contracts in which the association or the unit owners have an obligation or responsibility, directly or indirectly, to pay some or all of the fee or charge of the person or persons performing the service. (o) All other contracts to which the association is a party. (p) A report included in the official records, under seal of an architect or engineer authorized to practice in this state, attesting to required maintenance, useful life, and replacement costs of the following applicable common elements comprising a turnover inspection report: 1. Roof. 2. Structure. 3. Fireproofing and fire protection systems. 4. Elevators. 5. Heating and cooling systems. 6. Plumbing. 7. Electrical systems. 8. Swimming pool or spa and equipment. 9. Seawalls. 10. Pavement and parking areas. 11. Drainage systems. 12. Painting. 13. Irrigation systems.

1. Condominium form of ownership is comprised of units owned by one or more persons and joint ownership of ________ share in the common elements. A. a percentage B. an undivided C. a proportional D. a complete

B. an undivided Condominium means individual ownership of a unit coupled with joint ownership of an undivided share of the common elements as well as mandatory membership in the association.

100. Arbitrators assigned by the division to hear disputes must be _____. A. state licensed B. certified as a circuit court civil arbitrator C. certified D. specialists

B. certified as a circuit court civil arbitrator A mediator or arbitrator shall be authorized to conduct mediation or arbitration only if he or she has been certified as a circuit court civil mediator or arbitrator, respectively, per the Florida Supreme Court.

79. Licensed security guards must _____. A. hold a Class D driver's license B. wear a uniform with a patch or emblem that clearly identifies the security company C. pass a fitness test D. carry a firearm while on duty

B. wear a uniform with a patch or emblem that clearly identifies the security company Licensed security guards must be in uniform while performing their duties and must have at least one patch on their uniform that identifies the licensed agency for which they work. They must also have an identification card in their possession. Only security officers with both Class D and G licenses may carry firearms.

78. Any elevator operator who does not report an accident within _____ days is subject to an administrative fine of not more than _____ dollars. A. 5 / 100 B. 10 / 500 C. 5 / 1000 D. 10 / 100

C. 5 / 1000 The Division has the authority to suspend the operation of an elevator for safety reasons. If you have an accident in your elevator and someone is hurt or killed, you must file a report of that accident within five days on their form. The fine for not reporting is up to $1000.

63. An association with fewer than ______ units or having revenues less than _________ is only required to prepare a report of cash receipts and expenditures. A. 10 / $150,000 B. 75 / $150,000 C. 50 / $150,000 D. 50 / $300,000

C. 50 / $150,000 An association with annual revenues less than $150,000 or fewer than 50 parcels/units is required to prepare a report of cash receipts and expenditures. All other associations are required to complete a financial statement as listed below unless a majority of the members meet and waive the requirement. The requirements are a compiled, reviewed, or audited statement depends upon the amount of the annual revenues. Compiled: $150,000 to less than $300,0000 Reviewed: $300,000 to less than $500,000 Audited: $500,000 or more

32. Which of the following statements concerning elections is false? A. In condo associations of more than 10 units, co-owners of a unit may not serve on the board at the same time. B. A person delinquent over 90 days for any fee or assessment is ineligible to serve on the board. C. A corporate owner of a unit may not serve on the board. D. If a board member's term is expired, he/she will be automatically reappointed if there is no one interested in running for the board.

C. A corporate owner of a unit may not serve on the board. In a condominium association of more than ten units, co-owners of a unit may not serve as members of the board of directors at the same time unless they own more than one unit or unless there are not enough eligible candidates to fill the vacancies. For condominiums and HOAs, a person who more than 90 days delinquent in the payment of any monetary obligation due to the association or has been convicted of a felony and has not had his civil rights restored for at least five years as of the date of seeking election is ineligible for board membership. If membership in the association is not required to be a board member, then a corporate owner could serve on the board. However, if membership is required, a corporation cannot serve as a member of the board. If the number of board members whose terms have expired exceeds the number of eligible members showing interest in or demonstrating an intention to run for the vacant positions, each such board member whose term has expired is eligible for reappointment to the board and need not stand for reelection.

87. The Nirvana HOA with nine lots has an operating budget of $100,000 and reserve budget of $20,000. Under which situation must they obtain competitive bids? A. An association management contract for $12,500 B. A service contract of $11,000 C. A landscaping contract for $13,000 D. The purchase of a $20,000 elevator piston from sole supplier

C. A landscaping contract for $13,000 If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by an HOA that exceeds 10 percent of the budget, including reserves, the HOA must get competitive bids. Competitive bids are not required if the business entity with which the Association desires to enter into a contract is the only source of supply within the county serving the association. Contracts with employees of the association and contracts with attorneys, accountants, architects, community association managers, timeshare management firm, engineers, or landscaping architecture services are not subject to the bidding process. A. Management contract doesn't need to be bid B. Contract is less than 10 percent of the budget D. Is sole source exception

7. The ______ creates the association and the ______ creates the condominium. A. Declaration of Condominium / Articles of Incorporation B. By-Laws / Declaration C. Articles of Incorporation / Declaration D. Articles of Incorporation / Bylaws

C. Articles of Incorporation / Declaration The Articles of Incorporation, also known as the Corporate Charter, are the documents that create the association. The Condominium is established when the developer records the Declaration of Condominium with the county clerk in the county seat of the county in which the condominium is to be built.

38. If the documents do not set forth the officers, then each condominium and cooperative must have a minimum of _____ officers which could consist of ______ people. A. three / three B. Three / two C. Both A & B D. Nether A or B

C. Both A & B If the documents do not set forth the officers, then each association must have as a minimum, a president, a secretary and a treasurer. The President and the Secretary must be two separate persons. Therefore, a corporation in Florida could have just two people as officers.

9. The ______ establish(es) the procedures for carrying out the day to day responsibilities of the association. A. Articles of Incorporation B. Declaration of Condominium C. By-laws D. Rules and Regulations

C. By-laws The By-Laws establish the procedures for carrying out the association's responsibilities and clarify the day-to-day duties necessary to carry out the responsibilities of the association.

69. The form that verifies that a contractor has adequate liability and worker's compensation isnurance is called a _______. A. Liability policy B. Performance bond C. Certificate of Insurance D. Statement of Work

C. Certificate of Insurance The certificate of insurance must state the name of the insured, the name of the insurance company, the type of coverage and the amount of coverage. To protect the association from claims, a certificate should be required to demonstrate that each company allowed to do work on the property does maintain adequate general liability and workers compensation insurance.

14. The portion of the community property shared by all of the owners and members is _______. A. Limited Common Elements B. Association Property C. Common Elements D. All Easements

C. Common Elements A COMMON ELEMENT is that property shared by all of the owners and members of the community. Common elements are the portions of the condominium property not included in the units. Examples are pools, parking lots, tennis courts, etc. The common elements and the percentage of ownership are found in the Declaration of Condominium. The common elements are owned by all of the owners.

47. After the board of directors votes to approve a routine expenditure, one of the members in the audience who arrived late stands up and asks to discuss the issue. What should the president do? A. Allow the owner to speak for no more than 3 minutes. B. Let the owner speak his mind, then call for a revote. C. Declare further debate is out of order and continue the meeting. D. Call security and have the owner removed.

C. Declare further debate is out of order and continue the meeting. All Board of Directors meetings are open meetings and any member of the association may attend. All meetings of committees or any other group assisting in association business are open meetings. Owners may not vote at board meeting but may address the board on all agenda items when recognized by the chair. In this instance, the agenda item is closed and not appropriate for additional comments.

98. Which of the following disputes between a homeowner association and a parcel owner does not need to be filed with DBPR for mandatory mediation before the dispute is filed in court? A. Covenant enforcement issues B. Access to official records of the association C. Election meetings D. Amendments to association documents

C. Election meetings For homeowner associations, certain disputes shall be the subject of a demand for presuit mediation before the dispute is filed with the court. These include: disputes between the association and a parcel owner regarding use of or changes to the parcel or the common areas and other covenant enforcement disputes; disputes regarding amendments to the association documents; disputes regarding meetings of the board and committees appointed by the board; membership meetings not including election meetings; and access to the official records of the association Neither election disputes nor recall disputes are eligible for pre-suit mediation; these disputes shall be arbitrated by the department.

93. The basic concept of fairness in rules enforcement that results in the forfeiture of the enforcement rights when not used in a timely fashion is called _____. A. Quit title B. Quick claim C. Equitable Estoppel D. Arbitration

C. Equitable Estoppel If the board has knowledge of a violation and does not take steps to correct it, then it is increasingly harder in the future to correct violations. Once a violation is known, the steps should be taken immediately to correct the violation. If not done, and then later steps are taken, then it is impossible to correct in a court of law. This is known as EQUITABLE ESTOPPEL.

33. Which of the following is false concerning the certification of new members of an association board? A. He/she must certify he/she has read the governing documents and policies. B. Certifications must be maintained for at least five years. C. He/she can also provide certificate of completion (between 90 days before or one year after the election) of the curriculum administered by a DBPR approved condominium education provider. D. The new director will be suspended if the certification requirements are not fulfilled

C. He/she can also provide certificate of completion (between 90 days before or one year after the election) of the curriculum administered by a DBPR approved condominium education provider. Except for timeshare condominiums, within 90 days of being elected or appointed to the board, each new board member shall certify in writing to the secretary of the Association that he or she has read the Association's declaration of condominium/covenants, articles of incorporation, bylaws, and current written rules and policies; that he or she will work to uphold such documents and policies to the best of his or her ability; and that he or she will faithfully discharge his or her fiduciary responsibility to the Association's members. In lieu of this written certification, within 90 days of election or appointment, the director may submit a certification of satisfactory completion of the education curriculum administered by a state approved condominium education provider within one year before or 90 days after the election/appointment. Read the question carefully!

91. The most common method of managing an association is _____. A. Self management B. Hiring a manager C. Management Company D. Trusteeship

C. Management Company There are three forms of management. They are, in the order most used, hire a management company, hire a manager, and self-management.

36. A member of the board of directors writes a letter of resignation on May 10th stating that his resignation is effective May 30th. The association receives the letter on May 20th. When is the resignation actually effective? A. May 10th B. May 20th C. May 30th D. The day after it is approved by the Division

C. May 30th A member may voluntarily resign for his or her own reasons. The resignation is effective upon receipt of the written notice to the Board, unless the notice specifies a different date.

92. Rules and Regulations must pass what two tests? A. Must be timely and must not be restrictive B. Must be reasonable and must not be restrictive C. Must be fair and reasonable and must not be arbitrary D. Must be timely and must not be discriminatory

C. Must be fair and reasonable and must not be arbitrary When developing rules and regulations, the Board of Directors must use the rule of "STANDARD OF REASONABLENESS AND FAIRNESS". Rules and Regulations may not be arbitrary or discriminatory and their application must be fair and uniform among the owners and members.

49. Per 718 and 719, associations must maintain a roster containing ________. A. Name, address, registered voter and telephone number B. Husband's name, wife's name, address and telephone number C. Name, address, unit number and telephone number D. Name, unit number, registered voter and telephone number

C. Name, address, unit number and telephone number Each community association must maintain a roster of members. It contains the name of the member, current address, current telephone number and the property owned (unit number).

72. The two general types of property insurance are _____ and _____. A. General / Specific B. General / All Risk C. Named Peril (Special Form) / All Risk D. Named Peril (Special Form) / General

C. Named Peril (Special Form) / All Risk The "named peril" covers all risks specifically named in the policy: fire, theft, etc. Occurrences not specified or named are not covered. The "all risk" covers anything not specifically excluded by the policy. All risk policies used to be the norm but are no longer offered by the industry. They have been replaced by the multi-peril or special form policy.

42. _________ elect directors and ______ elect officers. A. Owners / owners B. Members / members C. Owners / directors D. Directors / owners

C. Owners / directors At the annual meeting, the members elect directors. At the first meeting of the Board of Directors following the annual meeting, the Board of Directors elects officers for the board. They may or may not be directors - it depends on the documents of the association.

61. Which of the following is not an example of accrual accounting? A. Annual assessments booked monthly B. Prepaid insurance C. Posting the June landscaping bill on the date it was received, July 3rd D. Posting an early assessment payment to prepaid assessments

C. Posting the June landscaping bill on the date it was received, July 3rd Accrual accounting records revenue when earned or billed (as opposed to when received) and expense when incurred or acquired (as opposed to when paid).

4. Application for renewal of a CAM license shall be postmarked by ___________ . If renewal application is postmarked after ____________ of the renewal year, the license shall be deemed expired. A. September 30, September 30 B. October 31, October 31 C. September 30, October 31 D. December 31, January 1

C. September 30, October 31 Renewal applications shall be postmarked on or before September 30 each even year. If the renewal application is postmarked after October 31, that license is deemed expired.

23. Notice of an annual or special meeting usually does not contain ________. A. Purpose of the meeting B. Date and time of meeting C. Social events scheduled D. Place of meeting

C. Social events scheduled The notice for a meeting must contain the time, date, place and the purpose of the meeting.

26. Which would not be used as a proper method of meeting notification? A. US Mail B. Hand Delivery C. Telephone call D. Electronic transmission

C. Telephone call General membership meetings, including Special Owner's Meetings, cannot be held without proper notice to all of the owners. The notice shall be mailed, hand-delivered, or electronically transmitted at least 14 days prior to the meeting.

30. Who/What usually determines the eligibility of members to serve on the Board of Directors? A. The Board of Directors B. The members at the annual meeting C. The By-Laws D. The Declaration of Condominium

C. The By-Laws Eligibility requirements for board members are set forth in the Articles of Incorporation and in the By-Laws. The General Corporate Law of Florida does not require directors to be members. If the bylaws say that all directors must be members, then they must be members.

73. Which of the following in regards to hazard insurance applies to a condominium built in 1980? A. The association must insure the common property and the owners personal property located inside the unit. B. The association must insure only the portion of common property located outside the units. C. The association must insure the condominium property located outside the units, as well as the condominium property inside the units as such property was initially installed. D. Condominiums built prior to 1985 do not have to be insured.

C. The association must insure the condominium property located outside the units, as well as the condominium property inside the units as such property was initially installed. Every hazard insurance policy for a condominium building must provide coverage for: All portions of the condominium property located outside the units; Property inside the units as such property was initially installed; All portions of the condominium property for which the declaration of condominium requires coverage by the association; All policies written after January 1, 2009 must include coverage for air conditioning and heating equipment. Excluded in the above coverage are: all floor, wall, and ceiling coverings; electric fixtures, appliances; water heaters, water filters; built-in cabinets and countertops; window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components.

65. Property taxes on the common property of an association are assessed against _______. A. The association B. The developer C. The individual units D. Not-for-profit associations do not have to pay property taxes

C. The individual units An association holding title to real property may get an annual real estate bill from the county tax collector and is liable for this tax. In condominiums the real estate taxes are assessed against the individual owners and are not assessed against the association as a whole. In a condominium the association will not be responsible for real estate taxes, unless it has purchased additional real property in the association's name. Remember, in a condominium that the association owns nothing. The owners own all the property.

84. A 400-unit condominium has an annual budget of $175,000 plus $25,000 for reserves. It needs to replace a roof that will cost $7,800. Which of the following is correct? A. This contract must be bid because it involves a roof. B. It does not have to be bid because the roof is less than the $10,000 reserve threshold. C. This contract does not have to be bid because it is less than 5% of the total annual budget including reserves. D. This contract must be bid because it is more than 5% of the $25,000 reserve budget.

C. This contract does not have to be bid because it is less than 5% of the total annual budget including reserves. Condos and Co-ops with more than 10 units must obtain competitive bids if the contract exceeds 5% of the association's total annual budget including reserves. Condos or co-ops with 10 or less units may opt out this requirement if approved by two-thirds of the owners. The total budget is $200,000 ($175,000 +$25,000). Five percent of this is $10,000. Therefore, competitive bids are not required.

44. Items not on the board meeting agenda should not be discussed unless it is an emergency item that is approved by _________. A. the Board unanimously B. a majority of the Board present C. a majority of the Board plus one D. None of the above

C. a majority of the Board plus one Items not on the agenda should not be discussed except in an emergency. Emergency items may be discussed if a majority plus one of the directors approve.

15. The part of a condominium that is subject to exclusive use is called _______. A. common elements B. association property C. a unit D. easements

C. a unit A UNIT is that part of the property reserved for the exclusive use of an owner. It may be land, improvements, or land and improvements.

29. In addition to giving notice to all owners of a meeting, proof of notice is required. This is done by a(n) ______ from an officer of the association or by USPS _____ of mailing. A. certificate / affidavit B. affidavit / affidavit C. affidavit / certificate D. certificate / certificate

C. affidavit / certificate The board must preserve proof of notice of meetings. This is usually done by an affidavit from the manager/officer that states that all of the owners were notified by mail, at their last known address, of the meeting on a specific date, or delivered by hand delivery (which requires the unit owner to waive, in writing, the right to receive the notice by mail.) A certificate of mailing from the U.S. Post Office may also be used.

20. The developer supplies the association with the copies of the certificates of occupancy ___________. A. as he gets them B. when he thinks they need them C. at transition D. when asked for them

C. at transition Within 90 days of when the members are entitled to elect a majority of the Board, the developer, at his expense, must turn over all of the property and official records to the association. This includes the association building plans used in the construction of the building, warranties, a list of contractors, sub-contractors, and suppliers, a copy of the certificate of occupancy and all permits applicable to the properties. An audit from inception to turnover date must be conducted at the developer's expense and an architect's or engineer's turnover inspection report shall be turned over by the Developer attesting to the required maintenance, useful life, and replacement costs of certain common elements listed in the statute.

31. The general corporate law of Florida _____ require that officers be directors and ______ require that directors be members. A. does / does not B. does not / does C. does not / does not D. does / does

C. does not / does not The general corporate law of Florida does not require that officers be directors or that directors be members of the association.

62. Upon the request of a unit owner, the Board of Directors must deliver a Certificate of Status of Assessments within ____ days. A. five B. ten C. fifteen D. twenty

C. fifteen In condominiums and cooperatives the Board must be prepared to deliver a certificate stating the status of all assessments affecting a unit within 15 days after a request by an owner or mortgage holder. Any person including the mortgage holder or purchaser, but not the owner, may rely on the certificate and is protected by its content and may presume it to be accurate.

24. In a condo, the owners must be given ____ days notice before the meeting to approve the budget. A. two B. ten C. fourteen D. thirty

C. fourteen If the budget is to be considered at a meeting, then 14 days notice is required.

52. A budget is merely a preview of ________. A. next year's income B. past year's expenses C. next year's expenses D. past year's income

C. next year's expenses A budget is an estimate of the operational expenses for the coming year. It is based on actual expenses of previous years, with a + or - factor for the coming year. It is prepared each year for the next year's twelve-month period and provides a preview of the coming year's expenses.

40. The election of officers usually takes place at the _______. A. annual owners meeting B. board of directors meeting C. organizational meeting D. special owners' meeting

C. organizational meeting The election of the officers usually takes place at the organizational meeting held shortly after the annual owners' meeting. Most documents say the organizational meeting will be held within 10 days of the election.

51. The following is not an example of official documents releasable to an owner. A. insurance policies B. financial records C. personnel records D. meeting minutes

C. personnel records Records must be open for inspection by the members or their representative at reasonable times with the exception of documents protected by lawyer-client privilege; documents pertaining to the lease, sale or transfer of a unit; disciplinary, payroll, health, insurance and personnel records of the association's and management company employees; social security, driver's license or credit card numbers, email addresses, telephone numbers, emergency contact information or medical records of unit owners; (Owners my consent in writing to the release of personal identifying information such as telephone and fax numbers, e-mail and other mailing addresses.) (Written employment agreements with an employee or management company or financial records that indicate the compensation paid to these entities are accessible to owners.) association's electronic or security data including passwords, software and operating systems.

95. Some documents restrict the right of sale of units and require the approval of the Board of Directors. This is called the _____. A. right of purchase B. right of denial C. right of first refusal D. right of ownership

C. right of first refusal Some documents restrict the right of sale or lease of individual units and require the approval of the Board of Directors prior to the transfer. This is called the right of first refusal. It is enforceable by Florida courts as long as it is for a lawful purpose and reasonable and clearly expressed in the documents.

27. The document which designates the one person who will vote for owners of a corporation is called a _________. A. proxy B. resolution C. voting certificate D. designation

C. voting certificate A voting certificate is an official part of the records of the association and designates the one person that can exercise the right to vote for a unit. When the unit is owned by more than one person (married couples are considered one person), then the owners must get together and decide who can cast that one vote. The last dated and properly executed voting certificate prevails. In the case of a corporation owning a unit, the voting certificate must be signed by the president and attested to by the secretary. A voting certificate does not expire. However, it may be superseded for a specific meeting by a properly executed proxy.

71. The Blown Wind Condominium experienced $100,000 damage during Hurricane Helga. The building value is $1,000,000 and the wind policy has a 3% deductible. How much should the Association plan on receiving from Citizens Insurance? A. $100,000 B. $97,000 C. $30,000 D. $70,000

D. $70,000 The deductible is 3% of the building value (0.03x$1,000,000) which is $30,000. The damage was $100,000 so the association will receive the difference ($100,000-$30,000) of $70,000.

25. It usually takes ______ days notice for a Board of Directors meeting and ______ days notice for an Owners meeting. A. 14 / 14 B. 14 / 2 C. 2 / 2 D. 2 / 14

D. 2 / 14 For board meetings, forty-eight hours notice is required, longer if the documents require. Owner meetings require a 14-day notice.

50. Association records must be made available to a unit owner within ___ miles of the association property or within the county of the association property. A. 10 B. 15 C. 30 D. 45

D. 45 Records must be made available in the county of the association or within 45 miles of the association property.

37. If a recall is disputed, then the board must file with the Division a petition for binding arbitration within ________ business days. A. 30 B. 14 C. 10 D. 5

D. 5 If a recall is disputed by the board, the board must file with the division a petition for arbitration within five full business days. If the board fails to duly notice and hold the required board meeting after being served with a recall petition, or fails to file a petition for arbitration challenging the recall, the unit owner representative may file a petition for arbitration. The petition must be filed within sixty days after the expiration of the applicable five full business day period.

57. The members of the Surf and Sand Condominium successfully petitioned the board to reconsider the annual budget. Within how many days of receiving the petition does the board have to call a special meeting of the membership to reconsider? A. 10 days B. 14 days C. 21 days D. 60 days

D. 60 days If the budget exceeds 115% of the previous year's assessments, excluding reasonable reserves for repair or replacement, anticipated expenses which the Board does not expect to be incurred on a regular/annual basis, or betterments to the property, 10% of the voting members may petition the board to reconsider it. The petition must be received within 21 days of the adoption of the budget. The board must call a special meeting within 60 days to reconsider the budget.

2. Under the General Corporate Law _______, community associations have the right to buy, sell or lease real property. Under the condo and co-op laws _____, condos and coops have the specific authority to acquire title. A. 617 / 718 & 719 B. 623 / 707 & 708 C. 621 / 718 & 719 D. 607 / 718 & 719

D. 607 / 718 & 719 FS 607 is General Corporate Law, FS 718 is condominiums, and FS 719 is cooperatives.

94. Which of the following are emergency powers granted to the condominium board if a state of emergency has been declared? A. Require evacuation of condominium property B. Levy special assessments without a vote of the owners C. Borrow money and pledge association assets as collateral to fund emergency repairs D. All of above

D. All of above Upon declaration of a state of emergency by the Governor of Florida in the locale where the condominium is located, the Board may, but is not required to, exercise certain powers in response to damage caused by the emergency. Conduct Board and Membership meeting with notice given as is practicable Cancel and reschedule any association meeting Relocate the association's principal office Implement a disaster plan which may include shutting down elevators, electricity, water, sewer or security systems Require evacuation of condominium property and, upon the advice of professionals, determine any portion of the property is unavailable for entry Contract, on behalf of unit owners, for items or services for which the owners are otherwise individually responsible for but which are necessary to prevent further damage to the condo property Levy special assessments without a vote of the owners Without owners' approval, borrow money and pledge association assets as collateral to fund emergency repairs and carry out the duties of the association when the operating funds are insufficient

11. When we are talking about amending the documents, which of the following is correct? A. If proviso made and percentage stated, then that percent B. If no proviso, then 100% C. If proviso made but no percentage stated, then 66 2/3% D. All of the above

D. All of the above Each document must provide for procedures for amendment. If they do not, then they can only be made with the approval of all of the owners. Usually documents provide for the percentage of owners necessary to amend the document. If the documents provide for amendment but do not state the percentage necessary then two-thirds of the owners must agree to the amendment. Summary: If no proviso for amendment, then 100% If proviso made but percentage not stated, then 66 2/3% If proviso made and percentage stated, then that %

28. What must be indicated on the outside envelope for a secret ballot? A. Name of voter B. Unit or unit numbers being voted C. Signature of voter D. All of the above

D. All of the above The exterior of the outer envelope shall indicate the name of the voter, and the unit or unit numbers being voted, and the signature of the authorized voter.

66. Risk control includes which of the following? A. Exposure control B. Loss prevention C. Contractual transfer of risk D. All of the above

D. All of the above Five techniques of risk control: Exposure avoidance Loss Prevention Loss reduction Segregation of exposures Contractual transfer for risk control

3. A person doing the following for remuneration must have a license. A. Posts notices for meetings and chairs committee meetings B. Prepares budgets and financial statements. C. Supervises maintenance. D. All of the above.

D. All of the above. A person who provides the following services for compensation must be licensed by DBPR Disburse funds Prepare budgets and/or financial reports Notice or conduct meetings Coordinate maintenance or other day-to-day services involving the operation of the association

83. Which of the following statements concerning towing is true? A. The towing sign must include the words "Tow-away Zone" in letters at least four inches high B. The notice must provide the name and current telephone number of the person or firm towing the vehicle. C. A person in the process of towing a vehicle must stop when a person seeks the return of the vehicle and the vehicle must be returned upon payment of a reasonable service fee of not more than one-half of the posted rate for the towing. D. All of the above.

D. All of the above. Prior to towing or removing any vehicle or vessel from private property, the following notice requirements must be met: The notice must be prominently placed at each driveway access or curb cut allowing vehicular access to the property. The notice must clearly indicate, in not less that 2-inch high, light-reflective letters on a contrasting background that unauthorized vehicles will be towed away at the owner's expense. The words "tow-away-zone" must be included on the sign in not less than 4-inch letters. The notice must provide the name and current telephone number of the person or firm towing the vehicles. The sign structure containing the required notices must be permanently installed with the words "tow-away-zone" not less than 3 feet and not more than 6 feet above ground level and must be continuously maintained on the property for not less than 24 hours prior to the towing or removal of vehicles. Any towed vehicle must be stored at a site within 10 miles in any county of more that 500,000 and within 15 miles in any county of less than 500,000 population. A person in the process of towing a vehicle must stop when a person seeks the return of the vehicle. The vehicle must be returned upon payment of a reasonable service fee of not more than one-half of the posted rate for the towing. A receipt must be given to the person redeeming the vehicle.

99. Which of the following statements is true concerning the Office of the Condominium Ombudsman? A. The governor appoints the ombudsman who must be an attorney admitted to practice before the Florida Supreme Court. B. He/she will act as liaison between the division, unit owners, boards of directors, board members, community association managers, and other affected parties. C. Fifteen percent of the total voting interests in a condominium association, or six unit owners, whichever is greater, may petition the ombudsman to appoint an election monitor to attend the annual meeting of the unit owners and conduct the election of directors. All costs associated with this monitoring process shall be paid by the association. D. All of the above.

D. All of the above. The Office of the Condominium Ombudsman was created within the division of Florida Condominiums. The governor appoints the ombudsman who must be an attorney admitted to practice before the Florida Supreme Court. He/she will act as liaison between the division, unit owners, boards of directors, board members, community association managers, and other affected parties. His other powers include: Monitor and review procedures and disputes concerning condominium elections or meetings. Fifteen percent of the total voting interests in a condominium association, or six unit owners, whichever is greater, may petition the ombudsman to appoint an election monitor to attend the annual meeting of the unit owners and conduct the election of directors. All costs associated with this monitoring process shall be paid by the association; Make recommendations to the Division for changes in rules and procedures for filing, investigation, and resolution of complaints filed by unit owners, associations, and managers; Provide resources to assist members of boards of directors and officers of associations to carry out their powers and duties; Encourage and facilitate voluntary meetings with and between unit owners, boards of directors, board members, community association managers, and other affected parties when the meetings may assist in resolving a dispute within a community association before a person submits a dispute for a formal or administrative remedy; Assist with the resolution of disputes between unit owners and the association or between unit owners when the dispute is not within the jurisdiction of the Division to resolve.

18. The board of directors at the Sunshine Condominium agreed to increase the size of the main swimming pool. Which of the following would be required to make this happen? A. A majority vote of the directors at a board meeting B. Approval by the Chairman of the Grounds Committee C. Approval by 75% of the unit owners present at a budget committee meeting D. Approval by 75% of the total voting interests of the association

D. Approval by 75% of the total voting interests of the association This would be a material alteration to the common elements. For condominiums or cooperatives, you cannot materially alter or substantially add to the common elements except in the manner provided for in the documents. If the documents provide for alterations or additions, but do not set forth the manner, then at least 75% (two-thirds for cooperatives) of the owners must approve the alteration or addition.

12. In a Chapter 720 Homeowners Association, which of the following is required to amend the governing documents? A. A majority vote of the board of directors at a regular business meeting B. A majority vote of all the voting interests in the association C. A majority vote by the Board of Governors at an amendment meeting D. Approval of 2/3 of the voting interests in the association

D. Approval of 2/3 of the voting interests in the association HOA document amendments must be approved by two-thirds of the owners unless the documents provide otherwise.

39. A condominium board of directors wants to appoint three new vice presidents. Which of the following is true? A. The board may appoint no more than two vice presidents without approval of the Division. B. Unless prohibited by the documents, the board can appoint as many officers as it wants, but only two of those officers can be appointed as vice presidents. C. The board must obtain the approval of 75% of the membership in order to appoint more than one vice president. D. As long as it is not prohibited by the documents, the board may appoint them.

D. As long as it is not prohibited by the documents, the board may appoint them. Additional officers and agents may be elected as the board deems appropriate.

35. The governing documents for the Water's Edge Condominium call for a board of directors of between three and seven members. The board currently consists of five members but the board wants to increase the number to seven. When should this usually be done? A. It does not matter because the board can appoint two additional directors anytime it wants. B. Anytime within 90 days of the last election the board can simply appoint two new directors. C. On the actual election day, just before the ballot box is sealed. D. At a membership meeting prior to the annual election.

D. At a membership meeting prior to the annual election. The number of directors is usually stated in the Articles of Incorporation and the By-Laws. Some older documents will state from three to seven, for example. Then the number of directors for the coming year must be determined before the election.

41. All Board of Directors meetings are open meetings and any member of the association may attend with the exceptions of _________. A. Board meetings to discuss pending or proposed litigation B. Board meetings to discuss personnel issues C. Board meetings to discuss pending or proposed litigation with the attorney present D. B & C above

D. B & C above Board meetings and committee meetings with the association's attorney present with respect to proposed or pending litigation may exclude owners when the purpose of the meeting is to seek or render legal advice. The Board may hold a closed meeting without the association's attorney present for the purpose of discussing personnel matters.

59. If a developer does not guarantee the budget, dues are collected on all developer-owned units from _____ until the date the developer sells the unit. A. the date the Declaration is recorded B. the date of the certificate of occupancy C. when the developer starts collecting assessments on other units D. Both A & B

D. Both A & B If the developer does not create a budget guarantee in the association documents, dues are collected on all developer owned units from the date of creation, or of certificate of occupancy, until the date the developer sells the unit.

70. Which of the following insurance claims adjusters would be paid for by the insurance company? A. Insurance company employee B. Public adjuster C. Independent adjuster D. Both A and C

D. Both A and C Insurance claims are usually settled with the assistance of a claims adjuster. There are three types of adjusters: Large insurers often use employees of the insurance company, whose costs are borne by the insurer. Independent adjusters are independent contractors employed by insurance companies to help settle losses, either when all employee adjusters are busy or when the loss is technical in nature. The public adjuster represents the insured and is not compensated by the insurer. They must be compensated by the insured (the association.) A public adjuster's fee is typically a percentage of the settlement. A public adjuster is typically called in when the claim is complex, or is being contested.

17. Condominiums created after April 1, 1992 may allocate shares of common elements by ________. A. Square footage B. Equal basis C. Developer's method D. Both A or B

D. Both A or B Since April 1, 1992, the percentage of ownership is expressed either by the square footage of the unit as a percentage of the total square footage in all of the units - or - as an equal fractional basis of all of the units.

75. The type of insurance that protects members of the Board of Directors except for Fraud, Ignorance or Lack of Due Caution is called _____. A. Liability B. Casualty C. All Perils D. Directors and Officers

D. Directors and Officers DIRECTORS AND OFFICERS INSURANCE - Provides liability coverage for wrongful acts by the association, the board, officers, and certain other volunteers, such as committee members. Coverage is typically written for $1,000,000 and above. D&O coverage does not cover fraud, ignorance of the law or lack of due caution.

89. The Board of Directors has met its fiduciary responsibility to the association when it seeks the advice of its _____. A. Attorney B. CPA C. A and B D. It depends on the issue

D. It depends on the issue The Board of Directors has met that responsibility when they have relied upon the advice of an expert in that area, one who has had special training and education in the area of concern.

58. What does not have to be on a claim of lien against a Cooperative parcel? A. the amount due B. The name of the unit owner C. The due date D. List of other liens against the unit

D. List of other liens against the unit A proper claim of lien must state the legal description and owner of the property, the name and address of the association, the amount and date when the assessment became due, and it must be signed by an officer or agent of the association.

53. A two-building cooperative gets estimates for roof replacements. The board is surprised to find that it will only cost $6,000 per building to replace the roofs. Which of the following is correct with respect to roof reserves? A. Roof reserves are not required because each roof is less than $10,000.00. B. Roof reserves are the option of the board. C. Roof reserves are required by the statute, regardless of cost, and the law requires that the reserves for both buildings be kept together in one consolidated account because the combined replacement cost is greater than $10,000. D. Roof reserves are required by statute, regardless of cost, and the reserves for each building roof may be maintained in separate reserve accounts, if desired

D. Roof reserves are required by statute, regardless of cost, and the reserves for each building roof may be maintained in separate reserve accounts, if desired Roof reserves are required by statute regardless of cost. However, there is no requirement to consolidate all roofs under one account. Each building's roof could be under a separate account.

96. Suzy has decided to rent the condominium she is currently living in for another year. Which of the following is true? A. Suzy must pay an annual transfer fee, but it may not exceed $300 B. Suzy must pay a $100 transfer fee and a $500 security deposit C. Suzy must pay double last year D. Suzy does not have to pay any transfer fees to rent the unit

D. Suzy does not have to pay any transfer fees to rent the unit No charge shall be made by the association or any body thereof in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in the declaration, articles, or bylaws. Any such fee may be preset, but in no event may such fee exceed $100 per applicant other than husband/wife or parent/dependent child, which are considered one applicant. However, if the lease or sublease is a renewal of a lease or sublease with the same lessee or sublessee, no charge shall be made.

5. Restrictive covenants that run with the land as permanent restrictions remain in effect until ________. A. The majority of the owners vote otherwise B. All of the owners agree C. The developer cancels them D. The community is terminated

D. The community is terminated When you purchase, you know that these covenants exist and will continue to exist for the life of the condominium or parcel and upon resale, the next owner inherits the same covenants. This is called running with the land.

97. Which of the following is not a "dispute" requiring arbitration for condominiums? A. Failure to properly conduct elections B. Authority of the board to alter a common element C. Failure to allow inspection of books and records D. The levy of a fee or assessment

D. The levy of a fee or assessment For condominiums, the term "dispute" means any disagreement between two or more parties that involves: (a) The authority of the board of directors to: 1. Require any owner to take any action, or not to take any action, involving that owner's unit or the appurtenances thereto. 2. Alter or add to a common area or element. (b) The failure of a governing body, when required by Florida statute or an association document, to: 1. properly conduct elections. 2. give adequate notice of meetings or other actions. 3. properly conduct meetings. 4. allow inspection of books and records. "Dispute" does not include any disagreement that primarily involves: 1. title to any unit or common element; 2. the interpretation or enforcement of any warranty; 3. the levy of a fee or assessment, or the collection of an assessment levied against a party; 4. the eviction or other removal of a tenant from a unit; 5. alleged breaches of fiduciary duty by one or more directors; or 6. claims for damages to a unit based upon the alleged failure of the association to maintain the common elements or condominium property.

54. When reserve funds are not funded fully, it requires ____ to approve the action. A. 51 percent of the owners B. 67 percent of the owners C. 75 percent of the owners D. a majority vote at a duly called meeting of the Association

D. a majority vote at a duly called meeting of the Association The association, by a majority vote of the members present at the meeting to approve the budget, or the annual owners' meeting, may vote to waive the collection of monies for reserves or reduce any amounts to be collected, if they so desire. This must be done each year if they do not want to collect the full amount for reserves. For condominiums, proxies relating to the waiving or reducing the funding of reserves or using existing reserve funds for purposes other that those for which the reserves were intended shall contain the following statement in capitalized, bold letters in a font size larger than any other used on the face of the proxy. "WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS."

13. That property owned by the association for the use and benefit of its owners is called _______. A. limited common elements B. condominium parcel C. common elements D. association property

D. association property ASSOCIATION PROPERTY refers to the real or personal property leased, owned or controlled by the association for the use of the members. This is different from common elements which are jointly owned by the owners. Examples would be a leased parking area, a golf cart used by management, or a popcorn machine in the clubhouse.

16. Common elements may be enlarged _________. A. by a majority vote of the Board B. only if the Association has the appropriate funds available C. by a two-thirds vote of the owners D. by an amendment of the declaration of condominium

D. by an amendment of the declaration of condominium Common Elements may be enlarged by an amendment to the Declaration of Condominium. The amendment must be made in accordance with the documents.

68. In the order of importance, the three basic requirements for investing the association funds are ____, _____, and _____. A. liquidity / safety /return B. return / safety / liquidity C. safety / return /liquidity D. safety / liquidity / return

D. safety / liquidity / return When investing the association's funds, the board must be aware at all times that they have a fiduciary duty to the members of the association. They must keep in mind the three basic requirements for investing the association's money, SAFETY, LIQUIDITY, and RETURN in that order.

86. Any contract made by the developer prior to turnover may be cancelled by a vote of ______ % of the owners. A. sixty B. fifteen C. thirty D. seventy-five

D. seventy-five Any contract made by the developer prior to transition must be fair and reasonable. Any contract made by the developer prior to transition may be canceled by 75% of the voting interests of the association.

19. Prior to transition of an HOA, the developer may amend the documents ______________________. A. only with a majority vote of the owners B. by filing a certificate with the State C. in any way he sees fit D. subject to a test of reasonableness

D. subject to a test of reasonableness Prior to transition of control of an HOA, the right of the developer to amend the association's documents is subject to a test of reasonableness which prohibits the developer from making amendments that are arbitrary, capricious, in bad faith, destroy the general plan of development, prejudice the rights of existing nondeveloper members to use and enjoy the benefits of common property or materially shift economic burden from the developer to the existing nondeveloper members.

74. Association employees who handle funds and the President, Secretary and Treasurer of the association should be bonded for _____. A. $10,000 if annual gross receipts do not exceed $100,000 B. $30,000 if annual gross receipts do not exceed $300,000 C. an amount equal to the annual assessments D. the maximum funds that will be in the custody of the association at any one time

D. the maximum funds that will be in the custody of the association at any one time All persons who control or disburse funds of the association plus the president, secretary and the treasurer to be bonded at the association's expense. The amount of the bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. HOAs may waive this requirement annually by a majority of the voting interests at a properly called meeting of the association.

88. The maximum period for warranties extended to an association is for _________ year(s) from completion of the building or ________ year(s) from the time that the owners assume control whichever occurs last. A. one / three B. three / two C. one / one D. three / one

D. three / one The developer will provide a warranty for a period beginning with the completion of construction of each building or improvement and continuing for 3 years thereafter or 1 year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than 5 years.