License Practice Flashcards
(103 cards)
1
Q
Which is the type of manager that typically works for a management company and manages multiple communities?
A
Portfolio
2
Q
Which of the following is a disadvantage of living in a common interest community?
A
Loss of freedom
3
Q
In condominiums the residents do not own the actual home or unit, but rather they own the ______
A
Air inside the unit
4
Q
Which of the following Florida Statutory Chapters is also known as the Condominium Act?
A
718
5
Q
All meetings of the board must be open to ______ except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege.
- The public
- All members
- The media
- All of the above
A
All members
6
Q
Absent any contrary provision regarding the manner of electing officers to a condominium association, who elects the officers?
- The board
- Members of the association
- The president of the association
- None of the above
A
The board
7
Q
Acme Homeowners Association has a board consisting of five members. How many board members are required to be present to have a quorum?
A
3
8
Q
Management activities include preparing budgets or other financial documents, assisting in the noticing or conduct of meetings, ______.
- Controlling or disbursing funds
- Coordinating maintenance for the development
- Representing the community in a court of law.
- Both A. and B.
A
Both A. and B. - Controlling or disbursing funds and Coordinating maintenance for the development
9
Q
Which is the document that creates a condominium when recorded with the clerk of circuit court?
- Bylaws
- Florida statutes
- Declaration
- Articles of incorporation
A
Declaration
10
Q
According to Florida Statutes Chapter 718, transition must occur within how many years of creation of the condominium?
- 7
- 10
- 1
- 20
A
7
11
Q
How many days does a prospective buyer have to cancel after the disclosure summary required by 720.401 F.S. is provided, if the disclosure was not provided prior to executing the contract for sale?
- 1
- 3
- 25
- None
A
3
12
Q
In a timeshare plan, what is the weekly fractional interest in a unit?
- 1/52
- 1/365
- 1/12
- 1/7
A
1/52
13
Q
Name someone that a HOA or condo association may hire to maintain the common property.
- Real estate agent
- Community association manager
- Developer
- None of the above
A
Community association manager
14
Q
Which of the following types of meetings does NOT require proper notice?
- Regular board meeting
- Organizational board meeting
- Emergency board meeting
- None of the above
A
Emergency board meeting
15
Q
Which of the following is an acceptable mode of delivery of The Written Notice for the condominium association annual meeting?
- Hand delivery
- Electronic delivery
- All of the Above
A
All of the Above
16
Q
How many days prior to the annual meeting must notice be delivered and be posted in a conspicuous place on the condominium property?
- At least 14 days and not more than 30
- At least 180 days
- At least 21 days and not more than 40
- 14 days
A
At least 14 days and not more than 30
17
Q
How many days after the date first used is DBPR Form CO 6000-7, the Limited Proxy Form, valid?
- 100
- 90
- 7
- 0
A
90
18
Q
Under 718.1265 Florida States, Association emergency powers, the special powers authorized are limited to that time to ________?
- Protect the health, safety and welfare of the association and the unit owners
- Protect the unit owners’ family members, tenants, guests, agents or invitees
- Shall be reasonably necessary to mitigate further damage and make emergency repairs
- All of the above
A
All of the above
19
Q
Unless the articles of incorporation or the bylaws require a different number, a quorum of a board of directors consists of _______ of the number of directors prescribed by the articles of incorporation or the bylaws.
- A majority
- 100%
- 1/3
- None of the above
A
A majority
20
Q
The minutes of a meeting must be reduced to writing within how many days after the date of the meeting?
- 60
- 30
- 5
- Within a reasonable time
A
Within a reasonable time
21
Q
The ______ is a legal construct that protects board members of corporations and, in this case the association, from being liable for decisions that in hindsight appear to be ill advised.
- Fiduciary duty
- Business judgment rule
- Quid pro quo
- None of the above
A
Business judgment rule
22
Q
The officers and directors of an association have what type of relationship to the members who are served by the association?
- Landlord-tenant
- Fiduciary
- Employer-employee
- All of the above
A
Fiduciary
23
Q
Which of the following types of meetings is a community association required to hold at least once a year?
- Member meeting
- Annual meeting
- Board meeting
- Special meeting
A
Annual meeting
24
Q
Which of the following reasons may make a condominium owner ineligible to be a board member?
- Having been convicted of a felony and rights have not been restored
- Being 90 or more days delinquent in paying fees or assessments
- Been suspended or removed from the board by the Department of Business and Professional Regulation (DBPR)
- All of the above
A
All of the above
25
Who must certify in writing that they have read the association’s governing documents or, instead, take DBPR approved education curriculum?
* New board members
* Community association managers
* Only officers on the board
* None of the above
New board members
26
The tool used to assists the board in estimating the amount of revenue needed to cover the association’s expenses.
* Budget
* Reserves
* Special assessment
* Calculator
Budget
27
How many budgets must be adopted by a multicondominium association with three separate condominiums?
* 1
* 2
* 3
* 4
4
28
Which of the following DO NOT need to be included in a condominium reserve budget?
* Roof replacement
* Building painting
* Pavement resurfacing
* Landscape architecture
Landscape architecture
29
* Reserves may be waived or reduced only upon ________.
* 100%
* Majority vote of membership
* Board vote
* None of the above
Majority vote of membership
30
* What is an exception for commingling reserve funds with operating funds?
* Disaster relief
* Investment purposes.
* Community party
* All of the above
Investment purposes.
31
How many days prior to a meeting where a condominium association budget is to be considered, must notice be delivered?
* 14
* 30
* 7
* No notice required
14
32
If a board adopts in any fiscal year an annual budget which requires assessments against unit owners which exceed ____ percent of assessments for the preceding fiscal year, the board shall conduct a special meeting of the unit owners to consider a substitute budget.
* 10
* 115
* 105
* 200
115
33
Which of the following is not a Formal Financial Report?
* Cash receipts
* Compiled
* Audited
* Reviewed
Cash receipts
34
The type of financial statement that must be prepared for an association with total annual revenues of $150,000 or more, but less than $300,000.
* Audited
* Reviewed
* Compiled
* None of the above
Compiled
35
The type of financial statement that must be prepared for an association with total annual revenues of at least $300,000, but less than $500,000.
* Audited
* Reviewed
* Compiled
* None of the above
Reviewed
36
The type of financial statement that must be prepared for an association with total annual revenues of $500,000 or more.
* Audited
* Reviewed
* Compiled
* None of the above
Audited
37
Which of the following is NOT considered when creating an association budget?
* How assessments are allocated among the parcels or units.
* The number of units or lots in the community.
* Frequency the assessments are collected.
* The average income of the member/owners.
The average income of the member/owners.
38
What type of assessment is for unforeseen expenses?
* Regular periodic assessments
* Special assessments
* Ad valorem taxation
* All of the above
Special assessments
39
Associations have an insurable interest in which of the following?
* Owner lots
* Common property
* Association profits
* All of the above
Common property
40
Whose responsibility is it to insure the common property?
* The board
* The individual members
* The county
* Both a & b
The board
41
The cost that the insured party must pay before an insurance company will pay a claim:
* Premium
* Deductible
* Replacement cost
* None of the above
Deductible
42
What is the document that provides proof of insurance coverage?
* Estoppel certificate
* Certificate of assessment
* Certificate of insurance
* W9
Certificate of insurance
43
The association shall maintain insurance or a fidelity bond for all persons who ________.
* Live in the community
* Control or disburse funds of the association
* Are employed by the association
* Visit members of the community
Control or disburse funds of the association
44
_______ covers the association for losses incurred as a result of fraudulent or dishonest acts of officers or employees.
* Fidelity bond
* Certificate of insurance
* Deductible
* Stock bonds
Fidelity bond
45
Which of the following is the primary responsibility of a community association manager?
* Accounting
* Coordinate and oversee maintenance
* Act as a liaison between the board and the DBPR
* Talking to owners/members.
Coordinate and oversee maintenance
46
The document which contains the responsibilities of the members of the association and of the association itself?
* Bylaws
* Articles of incorporation
* Declaration
* Minutes of meetings
Declaration
47
Maintenance of the common elements is the responsibility of __________.
* The individual owners
* The association
* The community development district (CDD)
* The county
The association
48
What percent of the total CONDOMINIUM budget must a contract exceed to require the association seeks competitive bids?
* 5%
* 25%
* 115%
* 0
5%
49
Which of the following types of contracts are exceptions to the condominium bidding requirement?
* Attorney
* Accountant
* Architect
* All of the above
All of the above
50
What percent of the total HOMEOWNERS' ASSOCIATION budget must a contract exceed to require the association seeks competitive bids?
* 5%
* 10%
* 115%
* 0
10%
51
A surety bond issued by an insurance company to guarantee satisfactory competition of a project by a contractor is also known as a .
* Performance bond
* Stock bond
* Certificate of assessment
* James Bond
Performance bond
52
If a unit owner is more than ____ days delinquent in paying a monetary obligation due to the association, the association may suspend the right of the unit owner or the unit’s occupant, licensee, or invitee to use common elements, common facilities, or any other association property until the monetary obligation is paid in full.
* 2
* 365
* 90
* 1
90
53
In both Condominiums and Cooperatives, the association has the irrevocable right to access each unit, during reasonable hours, when necessary for maintenance.
* True
* False
True
54
A condominium cannot be converted into a timeshare plan unless the ________ authorizes it to do so.
* Declaration
* Bylaws
* Articles of incorporation
* Deed
Declaration
55
How long after transferring ownership of a condominium association to the members do the developer warranties continue to run for first time purchasers?
* 15 years
* The warranties expire immediately at transition
* 1 year
* 1 month
1 year
56
Which document comes first in priority?
* Declaration
* Articles of incorporation
* Bylaws
* Rules and regulations
Declaration
57
In a corporation not for profit, the income or profit is distributable to _________.
* The members
* The directors
* The officers
* None of the above
None of the above
58
Which chapter of the Florida Statutes is known as the “Not-For-Profit Corporation Act”?
* 720
* 617
* 718
* All of the above
617
59
Chapter 718, the Condominium Act, requires that the association be either a Corporation-For-Profit or a ________.
* Corporation Not-For-Profit
* Limited liability company
* Partnership
* None of the above
Corporation Not-For-Profit
60
Under the Fair Housing Act, discrimination in the areas of education, employment, housing, or public accommodations give rise to a cause of action for discrimination based on _________.
* Race and color
* Religion, gender, and national origin
* Age, handicap, or marital status
* All of the above
All of the above
61
Under the Fair Housing Act, discrimination because of race, color, religion, gender, national origin, age, handicap, or marital status give rise to a cause of action when the discrimination is in the areas of ________.
* Education
* Employment
* Housing, or public accomodations
* All of the above
All of the above
62
Which of the following does a claim of lien NOT have to state in order to be valid?
* The condominium parcel
* The name of the record owner
* The appraised value of the parcel
* The amount due
The appraised value of the parcel
63
“Community association management” means any of the following practices requiring substantial specialized knowledge, judgment, and managerial skill when done for remuneration and when the association or associations served contain more than ___ units or have an annual budget or budgets in excess of $______: controlling or disbursing funds of a community association, preparing budgets or other financial documents for a community association, assisting in the noticing or conduct of community association meetings, and cording maintenance for the residential development and other day-to-day services involved with the operation of a community association.
* 10; 100,000
* 5; 50,000
* 10; 50,000
* 5; 100,000
10; 100,000
64
Which of the following are condominium members NOT allowed to do at board meetings?
* Speak
* Vote
* Attend
* All of the above
Vote
65
How many days prior to a membership meeting must notice be given to members of a condominium association?
* 14
* 21
* 7
* 2
14
66
How many days after being recalled does a condominium or cooperative director have to turn over records?
* 365
* 5
* 1
* 30
5
67
The Registered Office and Registered Agent of an association must be maintained ________.
* Anywhere in Florida
* Within 50 miles of the property
* Planet earth
* None of the above
Anywhere in Florida
68
Which of the following statements is true regarding the replacement of a vacancy on the board?
* Vacancies cannot be replaced
* Vacancies may be filled by appointment by the remaining board members
* Vacancies must be filled by an election
* None of the above
Vacancies may be filled by appointment by the remaining board members
69
Which of the following reasons are causes for removal of a condominium board member?
* Charged with felony theft or embezzlement
* 90 days delinquent in paying fees or assessments
* Suspension or removal by the DBPR
* All of the above
All of the above
70
A valid proxy is also a voting certificate for _______.
* The remainder of the year the proxy is dated for
* One specific meeting
* The life of the proxy
* The state governor's election
One specific meeting
71
Which of the following officers must a condominium or cooperative board have?
* President
* Treasurer
* Secretary
* All of the above
All of the above
72
Which of the following is needed to specify which individual owner will vote when there are multiple owners?
* Proxy
* Voting certificate
* Certificate of title
* None of the above
Voting certificate
73
At what point do amendments to the declaration become effective?
* Immediately after approval by the board
* When recorded with the Clerk of circuit court
* When the president says it does
* The declaration cannot be amended
When recorded with the Clerk of circuit court
74
Which of the following documents are the Governing Documents?
* Declaration
* Bylaws
* Articles of incorporation
* All of the above collectively
All of the above collectively
75
Which governing document usually describes quorum and voting requirements, meeting requirements, powers and duties of the board, and the manner for budgeting and collecting assessments?
* Bylaws
* Declaration
* Articles of incorporation
* None of the above
Bylaws
76
Pick the answer which reflects the proper order of the following documents’ relevance from greatest to least.
* Bylaws, rules and regulations, declaration, articles of incorporation
* Declaration, articles of incorporation, bylaws, rules and regulations
* Articles of incorporation, declaration, rules and regulations, bylaws
* Declaration, rules and regulations, articles of incorporation, bylaws
Declaration, articles of incorporation, bylaws, rules and regulations
77
If provided by the declaration or bylaws, the association may, in addition to such interest, charge an administrative late fee of up to the greater of ___________ of each delinquent installment for which the payment is late.
* $100
* $25
* 5%
* Both b & c.
Both b & c.
78
Which is the proper order that payment received by an association must be applied to the member’s account?
* Attorney’s fees, delinquent assessment, interest, administrative fee
* Administrative fee, attorney’s fees, interest, delinquent assessment
* Interest, administrative fee, attorney’s fees, delinquent assessment
* None of the above
Interest, administrative fee, attorney’s fees, delinquent assessment
79
A lien must be foreclosed upon within ____ years after the lien was recorded or else the lien is no longer effective.
* 2
* 1
* Indefinite
* 10
1
80
Which of the following is NOT information required to make a claim of lien valid?
* Description of the parcel
* Assessment amount due
* Year the owner took title
* Due date
Year the owner took title
81
An estoppel request must be fulfilled by the association within how many days after the request was made?
* 5
* 10
* 15
* 1
15
82
Typically, an estoppel is ordered by the owner or by a ___ as a part of the process of buying/selling a property.
* Neighbor
* Title company
* Association
* None of the above
Title company
83
Utilities, lake maintenance, and management fees, are all?
* Assets
* Reserve expenses
* Revenue
* Operating expenses
Operating expenses
84
An estoppel must be prepared by the association’s attorney.
* True
* False
False
85
An owner that acquires title to property at a foreclosure sale is NOT liable for any assessments which came due up to the time of transfer of title?
* True
* False
False
86
All corporation, for profit or not-for-profit, must file federal income taxes.
* True
* False
True
87
Owners CANNOT waive their right to use the common elements in order to avoid paying their share of the assessments.
* True
* False
True
88
Homeowners’ associations must provide each member with a copy of the annual budget or a written notice that a copy of the budget is available at no cost to the member.
* True
* False
True
89
The governmental entity that identifies flood prone areas is ________.
* The Department of Homeland Security
* Federal Emergency Management Agency (FEMA)
* The Environmental Protection Agency (EPA)
* The Internal Revenue Service (IRS).
Federal Emergency Management Agency (FEMA)
90
The government created corporation that provides Florida Windstorm and Hail Insurance.
* Geico
* Citizen’s Property Insurance Corporation
* Department of Business and Professional Regulation
* None of the above
Citizen’s Property Insurance Corporation
91
A fidelity bond covers the association for losses incurred as a result of .
* fraudulent or dishonest acts of officers or employees
* lightning
* bad investments
* All of the above
fraudulent or dishonest acts of officers or employees
92
An employer in the non-construction industry that employs 4 or more part or full time employees must have Florida workers’ compensation insurance.
* True
* False
True
93
The Condominium Act’s insurance provision overrides insurance requirements set forth in the condominium’s declaration.
* True
* False
True
94
Replacement cost must be determined at least once every 36 months.
* True
* False
True
95
The certificate that must be posted in a conspicuous location on an elevator and must be framed with a transparent cover.
* Certificate of approval
* Certificate of operation
* Certificate of assessment
* Gift certificate
Certificate of operation
96
Where can employees of the association perform pest control?
* The common areas only
* The common areas and individual units
* The owners homes
* All of the above
The common areas only
97
Which of the following is NOT safety equipment required for public swimming pools?
* Shepherds hook
* 18" lifesaving ring
* Goggles
* All of the above
Goggles
98
Security officers must _________ while on duty.
* Where a uniform
* Have a patch or emblem visible at all times
* Be in possession of their license
* All of the above
All of the above
99
* The person who facilitates a voluntary settlement between conflicting parties.
* Arbitrator
* Mediator
* Judge
* All of the above
X Arbitrator
| Mediator
100
In a condominium dispute, prior to the institution of court litigation, a party to a dispute shall petition the division for __________.
* Mediation
* Non-binding arbitration
* Relief
* None of the above
Non-binding arbitration
101
A committee has the ability to waive fines and suspensions.
* True
* False
True
102
When a director has disclosed a conflict of interest regarding a contract, the association can no longer consider the contract.
* True
* False
False
103
An association has to choose the lowest bid when it has sought competitive bids for contract services.
* True
* False
False
