Practice Test 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 percentage an undivided a proportional a completeQuestion 1 of 100 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. 617 / 718 & 719 623 / 707 & 708 621 / 718 & 719 607 / 718 & 719Question 2 of 100 3. A person doing the following for remuneration must have a license. Posts notices for meetings and chairs committee meetings Prepares budgets and financial statements. Supervises maintenance. All of the above.Question 3 of 100 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. September 30, September 30 October 31, October 31 September 30, October 31 December 31, January 1Question 4 of 100 5. Restrictive covenants that run with the land as permanent restrictions remain in effect until ________. The majority of the owners vote otherwise All of the owners agree The developer cancels them The community is terminatedQuestion 5 of 100 6. The Cooperative documents must contain all of following except ________. Documentation of each owner Identification by unit number/letter Recognition of owner Definition of the grounds leaseQuestion 6 of 100 7. The ______ creates the association and the ______ creates the condominium. Declaration of Condominium / Articles of Incorporation By-Laws / Declaration Articles of Incorporation / Declaration Articles of Incorporation / BylawsQuestion 7 of 100 8. What defines the membership and the voting rights of the Association? Corporate Charter Declaration of Condominium By-Laws Rules and RegulationsQuestion 8 of 100 9. The ______ establish(es) the procedures for carrying out the day to day responsibilities of the association. Articles of Incorporation Declaration of Condominium By-laws Rules and RegulationsQuestion 9 of 100 10. If the governing documents of an association conflict, which of the following is the proper order of priority? By-laws, Declaration, Articles of Incorporation, Board Rules and Regulations Declaration, Articles of Incorporation, By-laws, Board Rules & regulations Articles of Incorporation, Declaration, By-laws, Board Rules and Regulations Declaration, Board-approved Rules, Articles of Incorporation, By-lawsQuestion 10 of 100 11. When we are talking about amending the documents, which of the following is correct? If proviso made and percentage stated, then that percent If no proviso, then 100% If proviso made but no percentage stated, then 66 2/3% All of the aboveQuestion 11 of 100 12. In a Chapter 720 Homeowners Association, which of the following is required to amend the governing documents? A majority vote of the board of directors at a regular business meeting A majority vote of all the voting interests in the association A majority vote by the Board of Governors at an amendment meeting Approval of 2/3 of the voting interests in the associationQuestion 12 of 100 13. That property owned by the association for the use and benefit of its owners is called _______. limited common elements condominium parcel common elements association propertyQuestion 13 of 100 14. The portion of the community property shared by all of the owners and members is _______. Limited Common Elements Association Property Common Elements All EasementsQuestion 14 of 100 15. The part of a condominium that is subject to exclusive use is called _______. common elements association property a unit easementsQuestion 15 of 100 16. Common elements may be enlarged _________. by a majority vote of the Board only if the Association has the appropriate funds available by a two-thirds vote of the owners by an amendment of the declaration of condominiumQuestion 16 of 100 17. Condominiums created after April 1, 1992 may allocate shares of common elements by ________. Square footage Equal basis Developer’s method Both A or BQuestion 17 of 100 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 majority vote of the directors at a board meeting Approval by the Chairman of the Grounds Committee Approval by 75% of the unit owners present at a budget committee meeting Approval by 75% of the total voting interests of the association Question 18 of 100 19. Prior to transition of an HOA, the developer may amend the documents ______________________. only with a majority vote of the owners by filing a certificate with the State in any way he sees fit subject to a test of reasonablenessQuestion 19 of 100 20. The developer supplies the association with the copies of the certificates of occupancy ___________. as he gets them when he thinks they need them at transition when asked for themQuestion 20 of 100 21. The association has the irrevocable right of access to each unit during reasonable hours for _________. Maintenance, repair or replacement of common elements Replacement of wall coverings, floor coverings, and appliances Inspection for rules violations Only with ownerQuestion 21 of 100 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. 10 percent 50 percent 30 percent Two-thirdsQuestion 22 of 100 23. Notice of an annual or special meeting usually does not contain ________. Purpose of the meeting Date and time of meeting Social events scheduled Place of meetingQuestion 23 of 100 24. In a condo, the owners must be given ____ days notice before the meeting to approve the budget. two ten fourteen thirtyQuestion 24 of 100 25. It usually takes ______ days notice for a Board of Directors meeting and ______ days notice for an Owners meeting. 14 / 14 14 / 2 2 / 2 2 / 14Question 25 of 100 26. Which would not be used as a proper method of meeting notification? US Mail Hand Delivery Telephone call Electronic transmissionQuestion 26 of 100 27. The document which designates the one person who will vote for owners of a corporation is called a _________. proxy resolution voting certificate designation Question 27 of 100 28. What must be indicated on the outside envelope for a secret ballot? Name of voter Unit or unit numbers being voted Signature of voter All of the aboveQuestion 28 of 100 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. certificate / affidavit affidavit / affidavit affidavit / certificate certificate / certificateQuestion 29 of 100 30. Who/What usually determines the eligibility of members to serve on the Board of Directors? The Board of Directors The members at the annual meeting The By-Laws The Declaration of CondominiumQuestion 30 of 100 31. The general corporate law of Florida _____ require that officers be directors and ______ require that directors be members. does / does not does not / does does not / does not does / doesQuestion 31 of 100 32. Which of the following statements concerning elections is false? In condo associations of more than 10 units, co-owners of a unit may not serve on the board at the same time. A person delinquent over 90 days for any fee or assessment is ineligible to serve on the board. A corporate owner of a unit may not serve on the board. 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.Question 32 of 100 33. Which of the following is false concerning the certification of new members of an association board? He/she must certify he/she has read the governing documents and policies. Certifications must be maintained for at least five years. 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. The new director will be suspended if the certification requirements are not fulfilledQuestion 33 of 100 34. Which is false concerning a secret ballot? Ballots shall be placed into an inner envelope. Ballots should indicate unit number to ensure double votes are not cast. Only one ballot may be placed in an inner envelope. More than one inner envelope may be placed in an outer envelope.Question 34 of 100 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? It does not matter because the board can appoint two additional directors anytime it wants. Anytime within 90 days of the last election the board can simply appoint two new directors. On the actual election day, just before the ballot box is sealed. At a membership meeting prior to the annual election.Question 35 of 100 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? May 10th May 20th May 30th The day after it is approved by the DivisionQuestion 36 of 100 37. If a recall is disputed, then the board must file with the Division a petition for binding arbitration within ________ business days. 30 14 10 5Question 37 of 100 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. three / three Three / two Both A & B Nether A or BQuestion 38 of 100 39. A condominium board of directors wants to appoint three new vice presidents. Which of the following is true? The board may appoint no more than two vice presidents without approval of the Division. 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. The board must obtain the approval of 75% of the membership in order to appoint more than one vice president. As long as it is not prohibited by the documents, the board may appoint them.Question 39 of 100 40. The election of officers usually takes place at the _______. annual owners meeting board of directors meeting organizational meeting special owners’ meetingQuestion 40 of 100 41. All Board of Directors meetings are open meetings and any member of the association may attend with the exceptions of _________. Board meetings to discuss pending or proposed litigation Board meetings to discuss personnel issues Board meetings to discuss pending or proposed litigation with the attorney present B & C aboveQuestion 41 of 100 42. _________ elect directors and ______ elect officers. Owners / owners Members / members Owners / directors Directors / ownersQuestion 42 of 100 43. ________ notice is required for a Board of Directors meeting. One day Forty-eight hour Three day Twenty-four hourQuestion 43 of 100 44. Items not on the board meeting agenda should not be discussed unless it is an emergency item that is approved by _________. the Board unanimously a majority of the Board present a majority of the Board plus one None of the aboveQuestion 44 of 100 45. Which of the following is false. Directors can ________. vote by proxy vote by voice vote vote by secret ballot for officers vote by raising their handQuestion 45 of 100 46. For board of directors meetings, notice to owners _________. Must be mailed to owners Must be posted conspicuously on the property 48 hours in advance Can be by telephone or hand delivery Must be posted fourteen days in advanceQuestion 46 of 100 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? Allow the owner to speak for no more than 3 minutes. Let the owner speak his mind, then call for a revote. Declare further debate is out of order and continue the meeting. Call security and have the owner removed.Question 47 of 100 48. If a proxy is given on May 30th for a meeting on June 13th, when does it expire? 30 days after the meeting is scheduled for the first time 90 days after the original meeting for which it was issued 120 days from when it was signed or mailed, whichever was first 90 days after the last meeting when the motion was approvedQuestion 48 of 100 49. Per 718 and 719, associations must maintain a roster containing ________. Name, address, registered voter and telephone number Husband’s name, wife’s name, address and telephone number Name, address, unit number and telephone number Name, unit number, registered voter and telephone numberQuestion 49 of 100 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. 10 15 30 45Question 50 of 100 51. The following is not an example of official documents releasable to an owner. insurance policies financial records personnel records meeting minutesQuestion 51 of 100 52. A budget is merely a preview of ________. next year’s income past year’s expenses next year’s expenses past year’s incomeQuestion 52 of 100 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? Roof reserves are not required because each roof is less than $10,000.00. Roof reserves are the option of the board. 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. 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 Question 53 of 100 54. When reserve funds are not funded fully, it requires ____ to approve the action. 51 percent of the owners 67 percent of the owners 75 percent of the owners a majority vote at a duly called meeting of the AssociationQuestion 54 of 100 55. Most budgets are adopted by the ______. Board of Directors Owners Board of Directors and the Owners ManagementQuestion 55 of 100 56. Condominium assessments must be paid at least _______. Annually Quarterly Monthly WeeklyQuestion 56 of 100 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? 10 days 14 days 21 days 60 days Question 57 of 100 58. What does not have to be on a claim of lien against a Cooperative parcel? the amount due The name of the unit owner The due date List of other liens against the unit Question 58 of 100 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. the date the Declaration is recorded the date of the certificate of occupancy when the developer starts collecting assessments on other units Both A & BQuestion 59 of 100 60. Which of the following items do not need to be turned over to the Association by the condominium developer? Architect/engineer inspection report Total sales income of all units A copy of the plans and specifications All written warranties still in effectQuestion 60 of 100 61. Which of the following is not an example of accrual accounting? Annual assessments booked monthly Prepaid insurance Posting the June landscaping bill on the date it was received, July 3rd Posting an early assessment payment to prepaid assessmentsQuestion 61 of 100 62. Upon the request of a unit owner, the Board of Directors must deliver a Certificate of Status of Assessments within ____ days. five ten fifteen twentyQuestion 62 of 100 63. An association having revenues less than _________ is only required to prepare a report of cash receipts and expenditures. $200,000 $50,000 $150,000 $500,000Question 63 of 100 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? Reviewed Compiled Audited Cash reportQuestion 64 of 100 65. Property taxes on the common property of an association are assessed against _______. The association The developer The individual units Not-for-profit associations do not have to pay property taxesQuestion 65 of 100 66. Risk control includes which of the following? Exposure control Loss prevention Contractual transfer of risk All of the aboveQuestion 66 of 100 67. Risk retention is sometimes referred to as ________. Self Insurance Segregation of Exposures Indemnification Not very advisableQuestion 67 of 100 68. In the order of importance, the three basic requirements for investing the association funds are ____, _____, and _____. liquidity / safety /return return / safety / liquidity safety / return /liquidity safety / liquidity / returnQuestion 68 of 100 69. The form that verifies that a contractor has adequate liability and worker’s compensation isnurance is called a _______. Liability policy Performance bond Certificate of Insurance Statement of WorkQuestion 69 of 100 70. Which of the following insurance claims adjusters would be paid for by the insurance company? Insurance company employee Public adjuster Independent adjuster Both A and CQuestion 70 of 100 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? $100,000 $97,000 $30,000 $70,000 Question 71 of 100 72. The two general types of property insurance are _____ and _____. General / Specific General / All Risk Named Peril (Special Form) / All Risk Named Peril (Special Form) / GeneralQuestion 72 of 100 73. Which of the following in regards to hazard insurance applies to a condominium built in 1980? The association must insure the common property and the owners personal property located inside the unit. The association must insure only the portion of common property located outside the units. 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. Condominiums built prior to 1985 do not have to be insured.Question 73 of 100 74. Association employees who handle funds and the President, Secretary and Treasurer of the association should be bonded for _____. $10,000 if annual gross receipts do not exceed $100,000 $30,000 if annual gross receipts do not exceed $300,000 an amount equal to the annual assessments the maximum funds that will be in the custody of the association at any one timeQuestion 74 of 100 75. The type of insurance that protects members of the Board of Directors except for Fraud, Ignorance or Lack of Due Caution is called _____. Liability Casualty All Perils Directors and OfficersQuestion 75 of 100 76. The definition of ‘public lodging establishment’ includes any unit that is regulary rented for periods of less than _____ days. 15 30 45 60Question 76 of 100 77. Associations operating a public lodging establishment should be aware of Florida Statute 509 which concerns _____. Elevator operations Fire safety Building codes Swimming poolsQuestion 77 of 100 78. Any elevator operator who does not report an accident within _____ days is subject to an administrative fine of not more than _____ dollars. 5 / 100 10 / 500 5 / 1000 10 / 100Question 78 of 100 79. Licensed security guards must _____. hold a Class D driver’s license wear a uniform with a patch or emblem that clearly identifies the security company pass a fitness test carry a firearm while on dutyQuestion 79 of 100 80. Owners of public swimming pools must obtain a permit from the _____. County Health Department Department of Health, Division of Environmental Health State Department of Health City and/or County in which locatedQuestion 80 of 100 81. Which of the following do not have to be included on the posted Pool Rules sign? Bathing caps must be worn if hair is below shoulder length The hours of operation A requirement to shower before entering the pool No food, drink, or animals in the pool or on the pool deckQuestion 81 of 100 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? Decline to spray inside the unit Go ahead and spray inside the unit because he is certified by the Division of Commerce Spray inside the unit and send her a special assessment Spray inside the unit because he has a Class D security licenseQuestion 82 of 100 83. Which of the following statements concerning towing is true? The towing sign must include the words Tow-away Zone” in letters at least four inches high” The notice must provide the name and current telephone number of the person or firm towing the vehicle. 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. All of the above.Question 83 of 100 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? This contract must be bid because it involves a roof. It does not have to be bid because the roof is less than the $10,000 reserve threshold. This contract does not have to be bid because it is less than 5% of the total annual budget including reserves. This contract must be bid because it is more than 5% of the $25,000 reserve budget.Question 84 of 100 85. Which of the following does not have to be listed in a maintenance contract? the maximum number of units to be serviced per day Any relationship with the developer The services to be provided The cost of each service Question 85 of 100 86. Any contract made by the developer prior to turnover may be cancelled by a vote of ______ % of the owners. sixty fifteen thirty seventy-fiveQuestion 86 of 100 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? An association management contract for $12,500 A service contract of $11,000 A landscaping contract for $13,000 The purchase of a $20,000 elevator piston from sole supplierQuestion 87 of 100 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. one / three three / two one / one three / oneQuestion 88 of 100 89. The Board of Directors has met its fiduciary responsibility to the association when it seeks the advice of its _____. Attorney CPA A and B It depends on the issueQuestion 89 of 100 90. The least used form of management is _____. Self management Hire a manager Management company None of the aboveQuestion 90 of 100 91. The most common method of managing an association is _____. Self management Hiring a manager Management Company TrusteeshipQuestion 91 of 100 92. Rules and Regulations must pass what two tests? Must be timely and must not be restrictive Must be reasonable and must not be restrictive Must be fair and reasonable and must not be arbitrary Must be timely and must not be discriminatoryQuestion 92 of 100 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 _____. Quit title Quick claim Equitable Estoppel ArbitrationQuestion 93 of 100 94. Which of the following are emergency powers granted to the condominium board if a state of emergency has been declared? Require evacuation of condominium property Levy special assessments without a vote of the owners Borrow money and pledge association assets as collateral to fund emergency repairs All of aboveQuestion 94 of 100 95. Some documents restrict the right of sale of units and require the approval of the Board of Directors. This is called the _____. right of purchase right of denial right of first refusal right of ownershipQuestion 95 of 100 96. Suzy has decided to rent the condominium she is currently living in for another year. Which of the following is true? Suzy must pay an annual transfer fee, but it may not exceed $300 Suzy must pay a $100 transfer fee and a $500 security deposit Suzy must pay double last year Suzy does not have to pay any transfer fees to rent the unitQuestion 96 of 100 97. Which of the following is not a ‘dispute’ requiring arbitration for condominiums? Failure to properly conduct elections Authority of the board to alter a common element Failure to allow inspection of books and records The levy of a fee or assessmentQuestion 97 of 100 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? Covenant enforcement issues Access to official records of the association Election meetings Amendments to association documentsQuestion 98 of 100 99. Which of the following statements is true concerning the Office of the Condominium Ombudsman? 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. 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. All of the above.Question 99 of 100 100. Arbitrators assigned by the division to hear disputes must be _____. state licensed certified as a circuit court civil arbitrator certified specialistsQuestion 100 of 100 Loading…
