CAM Study Questions PDF

1. If you were looking for maintenance easements for a community, where would you most likely find those provisions? A. Bylaws B. Secretary of State’s Office C. Articles D. The Plats or CC&R’s. 2. Board members must do all of the following except: A. Follow the Business Judgm...

1. If you were looking for maintenance easements for a community, where would you most likely find those provisions? A. Bylaws B. Secretary of State’s Office C. Articles D. The Plats or CC&R’s. 2. Board members must do all of the following except: A. Follow the Business Judgment Rule. B. Receive a Salary for serving on the Board. C. Read NRS 116, NAC 116, their governing documents and understand to the best of their ability. D. Read their community’s Governing Documents. 4. Which of the following would normally correctly describe a condominium in any State? A. The owner owns stock in a corporation B. The owner owns air space. C. The owner has a divided interest in the common elements. D. The owner owns his unit from the sky to the ground. 5. How many days do you have to notify the division of any changes in your address after you receive your license regardless of the type of license you hold? NAC 116A.340 A. 10 B. 20 C. 30 D. 90 6. How many days does each member of the Executive Board have after his appointment or election to certify in writing that he has read and understands the governing documents of the Association, the provisions of NRS 116 and NAC 116 – NRS 116.31034 Section 19? A. 60 Days B. 30 Days C. 45 Days D. 90 Days 7. National Night Out is which of the following: A. A waste of time as this is a national organization with their own agenda. B. Is not an activity that should be considered by the Board since it does not affect their individual corporation in Nevada. C. It is a new concept that has not been proven to help with safety issues or building communities. D. It is a good time to help your common-interest communities “Build a Sense of Community and promote safety.” 2  8. In which document would you normally find lender provisions? A. The Public Offering Statement B. The Rules and Regulations C. The Articles of Incorporation D. The CC&R’s 9. What would you normally find in the Articles of Incorporation? A. The use restrictions B. The number of Officers required in the Corporation C. The purpose of the Corporation. D. The number of Board Members required. 10. Which of the following is the most accurate statement? A. Talking among themselves in Executive Session is the best way for a Board to stay in Safe Harbor as owners won’t know what is discussed or why the decision was made. B. Relying on the manager for legal advice will keep the board in “Safe Harbor”. C. The members of the Board will fall into “Safe Harbor” if they rely on qualified individuals to give advice and who are qualified in each specific area as required by law. D. Relying on a CPA to do the reserve study who is not “registered” will keep the Board in Safe Harbor since there are no other qualifications necessary other than shifting the authority and liability to someone else. 11. If a common interest community is not defined as a condominium or a cooperative, which of the below could be considered as another type of Common Interest Community? A. A Converted Building B. An Apartment C. A Planned Community D. A Commercial building 12. How would you define a limited common element? A. A component that is owned by the CIC, but one or more owners have access to or use of, but fewer than all of the owners. B. A component that has a limited life in the CIC C. A common element that can only be seen from the street. D. A common element that has minimal hours that it can be used by owners. 13. If you live in a condominium, what type of interest do you have in the common elements and common expenses? A. The owner owns his unit and no interest in the common areas. B. The association owns everything and the owners own the air space in their units. C. The owner owns his unit (Air space and any other area shown in the CC&R’s) and has an undivided interest in the common areas. D. The owner only owns what the Public Offering Statement stated you would own and the cost for the common expenses will be in the Bylaws. 9-2021 3  14. What is the purpose for an HOA to have landscaping? A. To enhance the value of the property. B. To satisfy provisions placed on the developer by the public entity. C. To have pleasing areas that break up the housing units themselves. D. All of the above. 9-2021 4 1. Which of the following statements is the most correct regarding communications? A. Because of the additional expense and lack of effectiveness, newsletters, welcome letters and creating web sites are not good ways to communicate with owners. B. Physical communications should be ignored in the community association industry as the way people show communications through bodily actions may not mean much. C. Being calm and smiling at someone when they are angry only makes the matter worse. D. Putting yourself “in their shoes” is always a good way to help when dealing with an upset owner. 2. Which statement is the most correct statement? A. The seating arrangement of members of the Board should not be considered when trying to control a troubled Board during their meetings. B. Seating arrangement can help to control troubled Board Members during meetings since some seating positions are considered “confrontational” positions. C. Sitting with their backs to the owners during a board meeting will not prove anything to owners in attendance except show that the Board Members doing so are being rude. D. Allowing owners to help make all decisions at a Board Meeting versus taking comments during the open session will allow for more owners to participate and eliminate liability for the Board. _ 5. When could a resident survey back-fire on a common-interest community? A. When the Board diligently tries to act on the suggestions B. When the Board publicly makes fun of any suggestions. C. When results are shared and at least considered. D. When a listing of the top ten suggestions have been identified and actions are being considered. 6. What role does the sales agent play in a new project or development? A. The sales agent in the developer’s office does not play a role. B. The sales agent in the developer’s office plays a critical role in building a “healthy Community” in a new common-interest community. C. The sales agent plays a very important part of insuring that the construction is completed properly on the homes. D. The sales agent plays an important part in making sure that the transition of control of the association is smooth. 5 7. A Board Member can be held personally liable for all of the following except: A. Failing to keep the common area in a state of good repair. B. Failing to follow the Business Judgment Rule C. Failure to retain the services of experts to advise the nature, extent and cost of repair of defects at the project. D. Failing to go along with decisions made by a majority of the Board that are also against the law. 8. Which of the key components of Verbal Communication is all that is “required” at an owner’s hearing? A. Successful Debate B. Listening C. Testimony D. Witness Statements 9. Ensuring that the Secretary of State Corporate filing is completed and mailed annually will ensure all but which one of the following: A. The Association will not lose the corporate name. B. The Association will not lose the corporate protections. C. The State of Nevada will have updated Officer information. D. The Association will have total protection against lawsuits. 6 Tract #3 (Human Resources and Ethics) 1. A Community Manager is considered to be an employee of the common interest community if: A. Works out of the community clubhouse. B. The Community Manager has no other clients, is paid by the common interest community and follows the directions of the Board of Directors. C. Is not certified or permitted D. Has business cards stating he or she is an employee of the common interest community. 2. In Nevada, an employee can be fired at any time without cause? A. True B. False 3. Which of the following describes what a manager can “take” as incentives annually from all vendors? NAC 116.482 A. $5,000.00 - Total of all vendors put together. B. $10,000.00 - Total of all vendors put together. C. $1,000.00 - Total of all vendors put together. D. $500.00 - Total of all vendors put together. 4. What amount needs to be reported with the renewal of the license when you have received any “gratuities” from vendors? A. $100.00 B. $16.00 C. $500.00 D. All of the above 5. What amount does a member of the board need to report with the budget annually when he or she has received a “gratuity” from a vendor? NAC 116.480 A. Anything over $100.00 B. Anything over $50.00 C. Anything over $500.00 D. Anything over $15.00 6. If a director is given a ticket for a function that costs $125.00 to attend from a vendor, what does the director need to do with the ticket? NAC 116.480 A. Give the ticket back as he or she can only receive $100 from all vendors in any one year or give $25.00 back to the vendor. B. Give it to his or her significant other as they can accept any amount. C. As the member of the board has served for 4 years and this is the first “incentive” he has received, he will split it over the 4 years and be okay. D. He can do anything he wants with it as directors don’t have any laws that pertain to gifts or incentives. 7 1. What law(s) are condo hotels subject to in Nevada? A. NRS 119A B. NRS 116B C. NRS 116A D. NRS 116 2. Which of the below is the most correct statement? NRS 116.3101 A. All new Associations must be incorporated and have specific terms in their corporate name. B. Must be formed under NRS 81 C. Only needs to have one officer position identified according to NRS 82. D. Will only be required to pay Ombudsman’s fees after the transition to owners has occurred. 3. If there is a conflict between the common-interest community’s CC&R’s and Nevada State Law, which one prevails? A. CC&R’s B. Nevada State Law 4. If there is a conflict between a Federal law and the CC&R’s, which one prevails? A. The Federal Law B. The CC&R’s 5. If there is a conflict within the common-interest community’s documents, where do you look first to see which prevails? A. The Documents themselves. B. In the Management Agreement C. In the rules adopted by the Board. D. The State Statutes 6. One of the main reasons the Board of Directors is required by NRS 116 to meet on a 100 Day Basis is to: A. Approve prior meeting minutes. B. Satisfy State of Nevada financial review requirements C. Listen to tenant complaints D. Approve any necessary contracts during the interim period. 7. Which of the following might you most likely not find in a Public Offering Statement? A. That the home is in a flood plain B. That the home is on an earthquake fault. C. That the owner will need to pay a special capital improvement fee on purchase of the home. D. Lender Provisions 8 8. What would you most likely not expect to see in a Community Management Contract? A. Any limitations on the liability of the Community Manager B. A statement of the full dollar value of the contract and payment schedule. C. A statement detailing the identity and legal status of the contracting parties. D. The Community Manager’s monthly salary 9. For which of the following reasons would a Board of Directors not be allowed to adopt rules and regulations? A. To clarify and further define the CC&R’s. B. To change the CC&R Provisions C. To help with buyer awareness D. To provide owners with knowledge of what disciplinary actions may be taken. 10. When must the open session Board of Directors meeting allow comments from the Owners? A. After the formal agenda items are discussed. B. Before the Board conducts the business on the formal agenda. C. There is no open session required for owners at a Board of Directors meeting. D. The correct answer is not shown. 11. A common-interest community must always have a collection policy regardless of any provisions in the CC&R’s to: A. Provide the authority to collect assessments B. Provide consistent handling of collection activities and comply with Nevada law. C. Provide the right to foreclose on a delinquent owner D. Provide a way to treat the Board differently than the owners 12. Annexation agreements play what part in a common-interest community? A. Establish rules in each phase B. Bring in new parcels or lots into the common-interest community and are important legal documents, which need to be kept with the other important documents. C. Play no part in a common-interest community D. Play only a minor part in a common-interest community and are not part of the legal documents of a common-interest community. 13. Which of the following is a correct statement? A. All State Laws take priority over all Federal Laws. B. The State Constitution always take priority over the Federal Constitution. C. The County and City Laws always take priority over State laws since they are closer to home and apply to a particular localities’ interests. D. All common-interest community documents must conform with State, Federal and Local laws. 9 14. Board Members serving on a Condo Hotel Board of Directors do not follow the same laws as a board member of board who is a director of a regular condominium in Nevada. True or False. A. True B. False 15. How much can the CICCH (Commission) fine a community manager for disciplinary Actions? NRS 116A.900 & NAC 116A.360 A. Up to $50,000.00 for each violation of the law. B. No more than $100.00 C. No more than $500.00 D. The correct answer is not listed.(Correct is $5,000.) 16. How many positive votes do you need to have to terminate an association unless the documents state otherwise? NRS 116.2118 A. 100% B. 80% C. 90% D. 75% 17. What are the qualifications to become a Supervisory Community Manager? NAC 116A.165 A. Must have a PCAM from CAI and have managed for 5 years. B. Must have managed for a total of 4 years anywhere and as a properly licensed manager in Nevada for 2 of those 4 years. C. Must pass the CMCA test from CAI and take the M-100 class. D. Must have manager for a total of 5 years in Nevada. 18. What is the maximum amount that a community manager (Provisional or Supervisory as well) can accept in any one year from any one vendor? NRS 116.31185 – A. $500.00 B. $1,000.00 C. There is no Limit D. $100.00 19. If a member of the board of directors has committed a violation of Nevada Law, what actions can the CICCH (Commission) order? NRS 116.785 A. They can take no action as it has to go through the ADR process B. They can fine up to 1,000 for any one violation. C. They can fine up to $10,000. for any one violation D. They can fine up to $500.00 for any one violation 10 20. What is the composition of the board in a condo hotel after the end of the declarant control period? NRS 116B.440 – (Not in Books) A. The developer can keep control for as long as he owns a unit. B. A majority of the board must be made up of unit owners 60 days after 75% of the units are closed. C. A majority of the board must be made up of unit owners 90 days after 50% of the units are closed. D. There is no correct answer. 21. Unless the documents provide otherwise, how often does the board of directs have to meet for a condo hotel association? NRS 116B.525 A. Quarterly B. Monthly C. Annually D. Every 90 days 22. The Board of Directors in a common interest community has the responsibility for which of the following: A. The financial operations and maintenance of the association. B. To amend all of the documents without a vote of the owners. C. Total enforcement of NRS 116 throughout the community D. Limit the number of foreign-born residents who can live in the community if required in the documents. 23. NRS 116.3106 states that the Bylaws must contain which of the following? A. A Copy of any use restrictions or maintenance requirements. B. A Copy of all deeds to the common areas that the association will own. C. Must contain the exact number of units that will be created in the association and how the association acts to change this number. D. Specify the powers that the executive board or the officers of the association may delegate to other persons or to a community manager 24. NRS 116.31175 requires the board or their authorized agent to provide copies of any records described in this section to a unit’s owner or the Ombudsman’s office with in how many days? A. 10 days B. 15 Days C. 30 days D. 21 Days 11 1. If the Common Interest Commission finds that a member of the board has committed a violation of the law or their governing documents, they can take all of the following actions except: NRS 116.790 A. Order an audit B. Apply for appointment of a receiver C. Require the employment of properly licensed Community Manager D. Fine the Association up to $20,000. 2. A Community Management Company Office as detailed in NAC 116A.335 must follow all of the following provisions except: A. Must be located in Nevada B. Must comply with all City and County zoning requirements C. Must be located in the same County as the common interest community. D. If in a home, must be in a separate room which is set aside for the conduct of the manager’s specific duties as a community manager. 3. The Community Manager’s certificate must be displayed in which of the following locations: NAC 116A.335 A. Must be displayed in the lobby of the management company’s office. B. It must be displayed conspicuously in the community manager’s office. C. Must be displayed in a conspicuous place in the community association club house. D. Must be displayed in the Broker’s Office 4. Which of the following is a requirement to qualify a person as a supervising community manager? NAC 116A.165 A. Must be a Broker in a real estate company. B. Must be a Professional Community Association Manager through a national organization. C. Must have been engaged in the full-time management of a common interest community for at least 4 years, 2 of which must be in the state of Nevada. D. Must be the owner of the community association management company and have been an owner for 2 or more years in Nevada. 5. What best describes a Provisional Community Manager? NAC 116A.155 A. Has fulfilled the educational and examination requirements for certification but has not fulfilled the 3,120 hours of supervised experience during a 2-year period. B. Has fulfilled the experience requirements for certification but has not fulfilled the education and examination requirements. C. Has no responsibility to anyone other than the Board for a period of 2 years. D. Has no responsibility to anyone other than the owner of the Management Company for a period of 2 years. 6. What is the maximum number of Provisional Community Managers that a Supervising Community Manager can simultaneously supervise according to NAC 116A.165, Section 2? A. Five B. Four C. Three D. There is currently no restriction 12 7. If the Association is planning on a Capital Improvement, what is the community manager’s responsibility? A. The Community Manager has no responsibility as this is a board decision. B. The manager is required to get three bids when reasonably able to do so by Nevada law. C. If the manager has an affiliation with a company that provides the service, they can give them preference since the manager knows they will do a good job. D. One bid is all that is needed for a Capital Improvement. 8. Where would you find the authority of tasks required of the Community Manager by the common interest community? A. In the By Laws B. In the CC&R’s C. In the Management Contract & Nevada laws D. In the Rules and Regulations. 9. Which statement is most correct regarding the laws regarding common interest communities (CIC) in Nevada? A. The only statute that concerns the CIC is NRS 116. B. NRS 117, the condominium statute, takes priority over NRS 116 for condominiums in Nevada. C. There are many laws that apply to CICs, but if there are any conflicts between the two NRS 116 applies. D. NRS 38, the mediation/arbitration law, only applies to CIC’s who are willing to pay the witness fees. 10. Which statement is the most correct when an owner in a common-interest community asks to make alterations to his unit? A. He or she must always go through the Architectural Committee and can be refused approval when not conforming to published guidelines even if he is asking for an accommodation for disabilities. B. The Association must allow and pay for all improvements that an owner requests to accommodate his disabilities. C. The Association must give an owner asking for accommodations a specific requested parking space even if the Association does not own the spot. D. The Association must make a reasonable accommodation and must be able to prove that they tried to work with other owners to try to accommodate an owner’s request. 11. Why is it important for a Board to meet every 100 days? A. To make sure that the owners know and see that the Board is in control and paying attention. B. To review the financial statement, reconciliations and account statements of the banks. C. To make sure that the community manager is on top of their action list. D. To give Committee’s direction and guidance 13 12. Which statement is the most accurate regarding the management contract? A. A Management Contract should not detail how many inspections of the property will be completed every month as it might take up to much of the Community Manager’s time. B. It is a good idea to make sure that the Board is required in the Management Contract to provide the Manager with all past rules and regulations, maps, plans and legal documents. C. There are no provision in NAC 116, NRS 116A or NRS 116 that require any specific items be placed in the management contract as these are private contracts between two organizations. D. A Management Contract does not need to be reviewed by the Association’s attorney prior to the signing as it might substantially put additional liabilities on the Board. 13. Which of the following is the most correct statement? A. The Community Manager has no responsibility to ensure that all of the documents are in the pile of boxes dropped of from the prior company as they should be able to take their word on what is included. B. Completing and signing an inventory of records and an acceptance when receiving a new client helps to protect the old community manager, the new community manager and the Board. C. Since the Secretary is responsible for all records for the association, the Community Manager shouldn’t keep an inventory of records. D. Since all documents but the minutes can be destroyed, there are no provisions requiring anyone to keep an inventory of records or any of the other records. 14. Which of the following is correct in accordance with NAC 116 and the continuing education requirements for Community Managers (both provisional and full community managers)? A. A Community Manager must verify 18 hours of continuing education over each 2 year renewal period, three of which must be Nevada law specific class on the CE number. NRS 116 & NAC 116 law. B. A Community Manager must satisfy 3, 120 hours of continuing education within each 2 year renewal period. C. A Community Manager must take 8 hours of law and 10 hours of general community management continuing education within each 2 year renewal period. D. A Community manager does not need to take any law classes during the 2 year renewal period, just 18 hours of general credits. 15. Which of the follow is not a qualification to serve on the Commission for Common Interest Communities? NRS 116.600, Section 4 A. A member must have been actively engaged in a business or profession related to common-interest communities for not less than 5 years immediately preceding the date of the member’s appointment, or B. A member must have been actively engaged in a business or profession related to common-interest communities for not less than 3 years immediately preceding the date of the member’s appointment, or C. Must not serve more than two consecutive full terms, or D. Must be a resident of the State of Nevada. 14 16. What is the maximum amount that can be charge in the foreclosure process in Nevada to a delinquent owner? NAC 116.470, Section 1 A. There are no limitations. B. The association, through its agents charge up to $19,500.00 C. The association, through its agents can charge up to $1,950.00 D. The association, through its agents can charge up to $2,550.00 17. Which is the most correct statement NRS 116A.410? A. When obtaining the temporary license, the applicant needs to pass the test, be offered a job and take the 60 hours of pre-licensing classes. B. When obtaining the temporary license, the applicant needs to be offered a job, within one year complete 18 hours of law classes, and take the pre-licensing test like everyone else. C. When obtaining the temporary license, the applicant needs to be offered a job and take 60 hours of pre-licensing classes. D. When obtaining the temporary license, the applicant needs to take the M-100, two of the advanced classes through CAI, and pass the state of Nevada community manager test. 15 1. What best describes an action without a meeting: A. An action where the President delegates his authority to the Vice President. B. An action where the Secretary certifies in writing that all of the parties agree on an action. C. An action that takes place in a workshop. D. An Action where an act may be taken by written consent of Directors in lieu of a meeting. 2. Which of the following is not a violation of Nevada Revised Statute 118.110 and does not discriminate under the housing, landlord and tenant law? A. When an apartment does not qualify for an adult community and is advertised prohibiting families B. When an apartment is advertised and states the number of rooms, monthly rental fee and when available. C. When an apartment advertisement specifically restricts a particular race. D. When an apartment advertisement specifically restricts a sex. 3. Which Nevada law governs parking, streets and vehicles? A. NRS 38 B. NRS 118A C. NRS 487 D. NRS 116B 4. Which Nevada law governs arbitration and mediation? A. NRS 118 B. NRS 40 C. NRS 444 D. NRS 38 5. Which Nevada law governs Condominium Hotels? A. NRS 116B B. NRS 116A C. NRS 116 D. NRS 119 6. The Board of a Condo Hotel must meet how often unless the documents state otherwise. A. Once a month B. Once a quarter C. Once every other month D. Once a year. 7. The Nevada law that surrounds the use of pools, lifeguards and the safety is which of the following: A. NRS 116 B. NRS 119 C. NRS 121 D. NRS 444 16 1. Are the specifications in the RFP considered part of the contract? A. Yes B. No 2. What are some of the problems with contracts? A. Small Print B. Gross Negligence C. Indemnification D. Limits of Liability 3. What did we suggest in class that you do to help owners protect themselves on a day to day basis? A. Provide listing of owners we will recommend and back. B. Provide a copy of the State of Nevada Contractor’s Board listing. C. Put a table in the clubhouse where vendors can leave their cards. D. Answer not shown. 4. Is there a law in Nevada about practicing law without a license? A. Yes B. No 5. Who should be reviewing all contracts? A. Manager’s Boss B. Association’s Corporate attorney C. Board Member Attorney D. Ombudsman’s Office 6. Who should be signing all contracts? Which is the best answer? A. It depends on what the documents require. B. Always the President C. Always the Secretary D. Any Officer 7. Should the Manager EVER sign a contract or application? A. Yes B. No 8. Are insurance applications contracts? A. Yes B. No 17 1. Which of the following is the most correct answer regarding the installation of a satellite dish on his lot that is 1-meter or less. A. If the Association has a satellite policy in place, the owner must put it in the approved spot, or the association must prove that the requested spot does not substantially affect the cost to the owner or reduction in the signal. B. If the Owner installs a satellite dish on the common area and the Association does not have any other way to accommodate the dish, the Association must allow him or her to place it on the common area. C. The only requirements that need to be considered by the Association in approving a satellite dish is the size. D. The Owner must seek approval before installing any satellite dish. 2. When a common-interest development has modifications and upgrades performed by a licensed contractor, those modifications need to: A. Be an enhancement to the community. B. Comply with current Federal American Disability Act provisions. C. Not cost more than all residents want to pay. D. Be completed after all other budget expenses have been covered for the year. 3. Which of the following is the most correct statement? A. When the CC&R’s state that an action shall be taken, it means that the provision must be followed unless it violates a State, Federal or Local law. B. When the Bylaws state that there must be 5 Directors, the Board can ignore this requirement when they can’t get volunteers. C. When the CC&R’s are in conflict with NRS 116, but NRS 116 states that “Not with standing” what is in your documents, this means you can ignore the law, but abide by the CC&R provision. D. When the Bylaws are in conflict with the CC&R’s, they normally take precedence over the CC&R’s. 4. When a Community Manager performs collection acts he or she needs to be concerned about complying with which of the following: A. The Fair Debt Collection Act B. The Fair Housing Act. C. The Over the Air Reception Act D. The Solar Device both Federal and State Acts 5. When dealing with a situation that involves the Federal Fair Housing Act and the Americans With Disabilities act, what must you keep in mind and which is the best answer? A. You need to be able to identify when someone is asking for an accommodation. B. You don’t need to worry about either law as they don’t apply to private corporations. C. You need to know that Fair Housing applies to association, but even if your association is open to the public, you don’t need to worry about the ADA. D. You never worry about the Fair Housing Act as we are not providers of housing. 18 1. Which statement identifies what is not a good idea for a Board to consider for proper use of their committees? A. The use of Charters or Job Descriptions is a good idea for every Committee in a Common- interest community. B. Committees are a good way to help train future members of the Board of Directors. C. Committees can be given the Board’s ultimate responsibility when they sign a statement stating they will assume that responsibility. D. Committee can be relied on by the Board to help them conduct research, report back to the Board and provide recommendations. 2. Which statement is the most correct statement? A. A Community Manager should never take the minutes for the association as the Secretary is responsible for all minutes. B. A Community Manager should always sit at the far end of the Board meeting table to show a clear distinction between the Board and Management. C. A Community Manager plays a very important part in the “Management Team” of a common- interest community. D. A Community Manager should delegate his or her wish to keep an inventory of records to the Secretary of the Association. 3. Using a proper licensed and experienced CPA to prepare an audit is an example of utilizing an expert as required by the laws of Nevada. True or false? A. True B. False 4. What are the 5 Types of Maintenance in a Common Interest Community? List in alphabetical order. A. Corrective B. Emergency C. Preventive D. Scheduled 5. Who is responsible for everything in a Common Interest Community? a. The Manager b. The Board c. The Management Company d. The Homeowners in the CIC 6. What responsibilities does the Manager have in regard to Maintenance in the CIC? E. Whatever the Board determines monthly. F. Whatever the manager determines monthly. G. Whatever the signed contract says. H. Whatever the NRED determines. 19 7. What is Preventive Maintenance? a. It is maintenance that is done only when something breaks down. b. It is maintenance that is performed on an annual basis regardless on condition or need. c. Maintenance that is done so that a component won’t prematurely wear or break. d. It is maintenance that scheduled over a 30-year period. 8. How does the reserve study fit into the maintenance plan of a CIC? a. It doesn’t fit into the plan. b. It schedules the repairs or replacement of components over a 30-year period. c. It lists the regular and routine maintenance that needs to be provided. d. It only lists those things that can be considered an emergency in fixing. 20 1. Robert’s Rules allows which of the following except: A. Allows the Body to make their own rules. B. Allows a motion to be passed by a majority of the Members of the Board without a Second on a motion, unfortunately. C. Allows each Director to have his opinion heard once before additional comments are taken. D. All of the above are correct. 2. Which of the following is the most correct statement? A. Robert’s rules requires that vote be taken immediately after a motion is made. B. Robert’s Rules allows the body to adopt their own rules. C. The President can never make a motion. D. The President can never vote unless he or she steps aside and give control to another person. 3. What is the most current version of Roberts Rules of Order as of 1/1/2015? A. Version 10 B. Version 11 C. Version 12 D. Version 13 4. Nevada law requires that the Board use the most recent version of Robert’s Rules of order or adopts a rule for some form of parliamentary procedure. True or False. A. True B. False 5. If the board wants to stop this properly noticed board meeting and resume at another date what does the board need to do? A. The Board needs to adjourn the meeting, send out another notice showing the date, time and place and meet all of the other noticing provisions in Nevada law. B. The Board needs to recess the meeting to a very specific, date, time and place at this meeting to be able to eliminate the noticing requirements in Nevada. No new items can be placed on the agenda as they are only finishing business. C. The Manager needs to reschedule the meeting and go through the Nevada noticing requirements to satisfy Robert’s Rules of Order. D. There is nothing in Robert’s Rules of Order addressing this issue and Nevada law needs to be followed for any continued meeting of the board. 21 1. Minutes of the Association meetings should be taken at the following meetings except for: A. Management Company Executive Meetings B. Board of Directors C. Executive Session Board of Directors D. Annual Meeting of Owners 2. Who is normally required to sign the official minutes of the common interest community to make them legal? A. Manager B. President C. Co-Signed By President and Manager D. Secretary 3. What is true about the minutes of an annual meeting of the members? A. Must be approved by a quorum of owners who are in attendance at the meeting. B. Can be approved by the Board at a Board meeting. C. Can be approved by the members at the next members’ meeting with or without a quorum. D. There is no longer a need for approval of the minutes of the annual meetings since normally no business is conducted since elections are separate actions. 4. Decisions can be made at Board of Directors meetings on items not on the agenda when: A. When the President determines it is okay to save time B. The item is an emergency as defined by NRS 116. C. When a majority of the Board votes to place the item on the agenda at the beginning of the meeting. D. Never 5. At what meetings do the owners have a right to speak, by law? A. At the beginning of the executive session board meeting only. B. During the discussion part of each item on the agenda of each board meeting. C. At the beginning and the end of the open board meeting. D. At the end of the open meeting only. 6. At which meetings does the board need to give advance notice to the owners? Which is the most correct answer? A. All meetings in the CIC B. All Board Meetings whether open or executive session. C. Only Committee Meetings D. Members meetings & Open Session Board Meetings. 7. Who can vote for the board of directors and how? Which is the most correct depending on what the documents say. A. Only members who are in good standing as defined in the documents and/or NRS 116 on a secret written ballot. B. Only members who live in the community on a secret written ballot. C. Only members who live in the community and the tenants who reside in the property for a non-resident owner on a secret written ballot. 22  D. All owners are entitled to vote by a written ballot and proxy unless their documents declare that only members in good standing can vote and a hearing has been held for owners not in good standing taking away their voting ability. 8. How many days does a director have to sign the Division’s form stating that they have read and understand to the best of their ability NRS 116, NAC 116 and the governing documents? A. 30 Days B. 90 Days C. 120 Days D. 10 Days 9. Does an owner wishing to force an election for the removal of a director or more need to show “cause” to start the process to remove a director from the Board? A. Yes B. No 10. Can your family member serve on the board where you have a contract to manage? 116.31034 A. Yes B. No 11. Must a candidate running for the board disclose any potential conflicts of interest in writing to the other owners? A. Yes B. No 12. Does the NRED have a preferred form for a candidate to use when running for the board in disclosing any conflicts? A. Yes B. No. 13. What are the requirements to remove a member of the board? NRS 116.31036 A. The Board can remove a member of the board by a majority vote. B. The owners who attend a meeting can remove a member of the board with no quorum. It is a majority of any who show up just like the Budget ratification meeting. C. The laws don’t address removal of a member of the board as it refers you to the governing documents only. D. There is no correct answer shown above. 14. How do you define a member in good standing? NRS 116.31034 A. An owner who does not have any fines levied against his or her property. B. An owner who does not have any unpaid and past due assessments or construction penalties that are required to be paid to the association. C. An owner who serves on the board or committee and has not construction penalties, but may owe past due assessments. D. An owner who lives in the community and has never had past due assessments in the past, but is slightly delinquent in paying construction penalties. 9-2021 23 15. Under what circumstances can someone be appointed to the board of directors? Which is the best answer shown below? NRS 116.3103 Sect. 2 A. The Board may appoint an owner to fill a vacancy in its membership for the remainder of the unexpired portion of any term unless the governing documents provide that a vacancy must be filled by a vote of the owners. B. The Board may appoint an owner or a tenant to fill a vacancy in its membership for the unexpired portion of any term unless the governing documents provide that a vacancy must be filled by a vote of the owners. C. The Board may not appoint an owner to fill a vacancy in its membership unless the documents state otherwise. D. The Board may fill vacancies in its membership for the unexpired portion of any term or until the next regularly scheduled election of the board, unless the documents require or state otherwise. 16. How long must the association keep the minutes of the association? NRS 116.3108 Section 8 A. 10 Years B. Until the next board takes control plus 10 years C. Until the common interest community is terminated. D. The only provision that the board needs to satisfy is in their Bylaws. 17. What are the ways that an emergency meeting can be noticed? Which is the best answer? NRS 116.31083, Sect ion 3 & 5 (See Section 116.31068, Section 1 as well) A. The Secretary or other officer specified in the bylaws shall cause notice of the meeting to be sent prepaid by US mail unless impracticable and then shall be hand-delivered to each unit or posted in a prominent place or places within the common area. B. The Manager or one of the officers must hand deliver to each unit owner and mail to off site owners a copy of the notice. C. The Secretary or other officer has no choice but to send by prepaid US mail the notice of the meeting, which must satisfy all of the provisions in NRS 116.31083, section 2. D. None of the above answers are correct. 18. If a candidate wants to put signs in his yard regarding his election to the board of directors in his association, how many days before the ballots are required to be returned can the candidate put the sign in his yard regardless of what any rules state? A. 120 Days B. 90 Days C. 30 Days D. None of the above. 19. A husband and wife can both serve on the board of directors regardless if there are candidates who entered their names for more than the open spots available. A. True B. False 9-2021 24  20. If a candidate wants to communicate campaign material directly to the units’ owners, and asks the association to provide the owners’ information in the format of a compact disc, what is the maximum the association can charge the requesting owner for that disc? NRS 116.31034, Section 17. A. $5.00 B. $10.00 C. Whatever is in the management contract! D. There is no minimum 9-2021 25 1. A Hearing should not be which of the following: A. An opportunity to resolve problems. B. An opportunity to listen C. Confrontational D. An opportunity to determine if the owner is a member in good standing. 2. NRS 116.320 protects the rights of owners to fly the United States Flag within the portion of the CIC that the owner has the exclusive right to occupy, but this right does not extend to a flag display which: A. Interferes with the scenic view protections given to another owner. B. Is made of material other than cloth C. Is placed on a pole taller than 8 feet high D. That is part of a commercial advertisement. 3. When should the Board obtain an injunction? A. When the alteration to the home is substantially completed to not risk interrupting the work started? B. When a neighbor advises the Board that he or she will sue the Association if action is not taken immediately. C. When there will be considerable work completed in the very near future and a judge may hesitate to ask the owner to remove it because of expense. D. The Board should obtain an injunction whenever possible to stop all owners from violating the documents. 4. Assessment of a fine may be enforced if the person alleged to have violated the rule has received notice of the alleged violation informing him of which of the following (NRS 116.31031, Section 4 & 5): A. A notice advising him or her of their opportunity to request a hearing. B. A notice of the date, time and location of the hearing. C. A notice advising him of his opportunity to attend and debate with the Board. D. A notice advising them of an immediate fine. 5. Rules adopted by a common-interest community require which of the following except: A. Be reasonably related to the purpose for which they are adopted. B. Must be sufficiently explicit to inform a unit’s owner, tenant or guest of any action or omission required for compliance. C. Be given to all owners at least 30 days before implementation. D. Give the Board preferential treatment because of all of the time they volunteer. 6. Any owner who is the subject of a hearing in an executive session of a Board meeting, must: A. Be provided a copy of the decision of their hearing in the minutes, upon request. Just theirs! B. Not be allowed to attend the hearing. C. Must be advised that he cannot be represented by legal counsel. D. Bring witnesses to defend his position. 9-2021 26 7. There are no limits on fines levied by the Board for: A. Health, Safety and Welfare issues B. Fines against Board Members C. Fines on Committee Members D. Fines against the Vendors 8. Executive Session Meeting of the Board of Directors in Nevada can be held to discuss the following issues except for which of the following: A. Consult with the attorney for the association on matters relating to proposed or pending litigation. B. Discuss matters relating to personnel. C. Discuss violation of the governing documents alleged to have been committed by a Unit Owner or his tenant. D. Consult with the landscaper and approve the landscape contract 9. A nomination form or notice of an owner’s right to run for the Board of Director’s must be sent: A. As required by the Bylaws. B. A nomination form is not required since a Nomination Committee will pick the candidates. C. Nevada law requires a 30 day notice to all owners of their ability to run for the open spots on the Board of Directors before the ballot is prepared. D. Nevada law requires that the notice be sent within 15 days of the date the ballot is prepared. 10. The following individuals can vote a proxy except: A. Only a member of the owner’s immediate family B. A tenant of the owner’s unit who resides in the common-interest community C. The Board of Directors by majority vote D. Another unit’s owner who resides at the property. 11. What is the best approach to enforcement in a common-interest community? A. Proactive and Reactive Enforcement Combined B. Reactive Enforcement C. Proactive Enforcement D. Conversational and Directed 12. When a hearing is held, the first thing the board should determine is: A. Whether there was a violation in the first place based on evidence considered at the hearing. B. Whether a neighbor has been the complaining party and wants to take it further. C. Whether the owner intends to pay the fine. D. Whether the owner is one of the good guys and not one of the trouble makers. 13. Which statement is most correct about a unit’s owner right in the Association to enforce any provision in any governing document? A. Owners must file small claims actions if they wish to enforce any action. B. Owners never have the right to enforce contracts as the Association is the only entity that can enforce the documents. C. Owners normally have the right to enforce any of the provisions in any of the governing documents if the Board fails to or refuses to do so. D. Owners do not need to be concerned about enforcing any of the provisions in any of the documents as the Board has the ultimate authority. 9-2021 27 14. Does NRS 116 protect the right of an owner to display the flag of the US within the portion of the CIC that the owner has the exclusive right to occupy? A. Yes B. No. 15. If the documents allow it, under what circumstances may the association of the CIC levy a fine against a tenant as defined in NRS 116.31031? A. For construction Penalties B. If it involves a vehicle delivering goods or providing services. C. Violation of most provisions of the governing documents. D. For a violation of which the tenant was not given prior notice. 16. Under the Fair Debt Practices Act, how many days does the owner have to dispute the debt before the association may take any further action to collect? A. 30 B. 60 C. 90 D. 120 17. Can association liens for violations be foreclosed on in the CIC and if so for what reasons? A. Whenever the Board determines enough is enough. B. Whenever the amount owed goes over $1,000. C. When the issue will affect the health, safety and welfare of the other owners. D. They can’t be foreclosed on ever. 18. What is the best type of enforcement? A. Proactive B. Reactive C. Reactive & Proactive D. Latent and patent 19. Are there any limitations on fines for health and safety issues? A. Yes B. No 20. Are there any limitation on fines for non-health and safety issues? A. Yes B. No. 21. Must the owner of a property, in which he has a tenant, be required to follow the same rules as the other owners when dealing with architectural issues? A. Yes B. No. 9-2021 28 22. How often can a board continue to fine an owner in violation of the governing documents NRS 116.31031 Section 7. Which is the most correct answer? A. There is no limit on continuing fines in Nevada law. B. The board is limited to a $1,000 maximum on continuing fines. C. The board is limited on continuing fines by Nevada law up to $20,000 and then it must go to Arbitration. D. The board is limited on continuing fines by Nevada law up to $10,000 and then it must go to arbitration. 23. The association can’t prohibit drought tolerant landscaping unless the homeowner doesn’t make an attempt to do what? NRS 116.330 A. Get each owner on each side of him or her to sign a document stating that they do not have any problem with the plans as drafted. B. Get at least one board member to agree that the project blends in with the community and that the board member will take it to a meeting for him or her to get approval. C. Submit a detailed description or plans for the drought tolerant landscaping for architectural review and approval in accordance with the procedures, if any, set forth in the governing documents of the association, which must be compatible with the style of the CIC. D. Submit a detailed description or plans for the drought tolerant landscaping for review and approval of the City or County planning in accordance with their procedures, but the plans must also be compatible with the style of the CIC. 24. What is the most the board can fine for each violation of the governing documents? NRS 116.31031 Section 1 – Which is the best answer for the initial fine amount under consideration by the board? A. $10.00 for each violation or a total amount of $100, whichever is less. B. $1,000 for each violation or a total amount of $5,000, whichever is less. C. $75 for the first violation, $100 for the second or a total amount of $500, whichever is less. D. $100.00 for each violation or a total amount of $1,000, whichever is less. This does not include continuing fines, however. 25. Who can receive a violation letter in the association and other important association documentation as stated in the law if proper notice was given to all parties prior to the violation and the documents so provide? NRS 116.31031, Section 1& 3 - Which is the best answer of the 4 choices? A. The unit’s owner, a tenant, an invitee of a unit’s owner or a tenant. B. The unit’s owner is the only one who can receive a violation on his property or the common elements. C. There are no restrictions on who can be sent violation notices or receive other important association documentation. D. The unit’s owner, a tenant, his attorney and the property manager for the owner. 26. The board may not fine a unit owner for the actions of a tenant or invitee unless they take what action first. NRS 116.31031 Section 2 - Which is the most correct answer? A. Unless they send him or her a certified letter telling them that the fine has been levied giving them 30 days notice to pay. B. Unless the unit’s owner had prior notice of the violation. 9-2021 29  C. Unless the unit’s owner participated in or authorized the violation, had prior notice of the violation or had an opportunity to stop the violation and failed to do so. D. Unless they send him or her a certified letter telling them that they had prior notice of the violation when they bought their property. 27. Even though we have to allow the United States Flag to be flown by the owners, we do not have to let the unit owners fly the State of Nevada flag? A. True B. False 28. The limitations on the amount of the fine do not apply to any charges or costs that may be collected by the association pursuant to NRS 116.31031, Section 1 (b) (2) - if the fine becomes past due. True or False. A. True B. False. 28. When a hearing is held, it is always a good idea for the board to determine which of the following besides whether there has been a violation and whether they will levy a fine or not. Look at the flow chart as to why the board should do in track 12. A. Whether the owner is a member in good standing. B. Whether a neighbor has been the complaining party. C. Whether the owner intends to pay the fine. D. Whether the neighbor is a friend of anyone on the board. 29. Do you need to take a picture of a violation weekly if you are going to fine weekly to have a record of the continued violation for the file? A. Yes B. No 9-2021 30  1. Which of the following definitions best fits the definition of Mediation: A. Both parties help in reaching an agreement. B. A judge or arbitrator reaches a decision for both parties. C. The decision is binding on both parties and cannot be appealed to the courts. D. The decision reached cannot be used in court. 2. What difference, if any, is there in the Ombudsman’s Intervention Program from the Chapter 38 program? Which is the best answer? A. There is not difference B. The Ombudsman’s Intervention Program is a facilitation where the division employees just try to get an agreement between the parties vs. a mediator helping the parties to reach an agreement. C. The Ombudsman’s Intervention Program is a mandatory meeting where the parties don’t work with a mediator or arbitrator to reach an agreement. D. The Ombudsman’s Intervention Program is a mandatory meeting where the parties don’t work with a mediator or arbitrator to reach an agreement and the agreement is binding. 3. There is no definition in NRS Chapter 38 defining assessments? True or False. A. True B. False 4. No civil action based upon a claim relating to the interpretation, application or enforcement of any CC&R’s applicable to any residential property can be taken until all administrative procedures specifies in any CC&R’s applicable to the property or in any bylaws, rules or regulation of an association have been exhausted. True or False – NRS 38.310 A. True B. False 9-2021 31 1. Which signatures are required on the reserve accounts? A. The signature of only one Officer (who does not need to be a Board Member) and the signature of one of the principles of the Management Company. B. The signature of one owner and one officer. C. The signature of the manager and one Director D. The signature of two Directors or one director and one officer if the documents allow. 2. If an annual budget of an Association is $150,000 or over, when must an audit be conducted? NRS 116.31144 A. Every year. B. Every 2 years C. Every 3 Years D. Every 4 Years. 3. Which one of the reasons should a common interest community not consider when establishing a Collection Policy? A. A method to treat owners fairly and equally. B. A method of ensuring that owners understand the costs involved in non-payment of assessments. C. A method detailing how the budget that has been ratified will be enforced with all collections. D. A method used to solely show the owners that the Association means business. 4. If an association has an annual budget that exceeds $75,000, but is less than $150,000, a review must be conducted by a certified public accountant every: NRS 116.31144 A. 2 years B. Change in Management Company C. Year D. 100 Days 5. According to BPC Accounting Guide for Common Interest Communities, which of the following items does not need to be provided to the board every 100 days, but the CPA recommends it anyway: A. The Income and Expense Statement B. Reconciliation of the Bank Statement C. A Balance Sheet D. An aging report 6. Which of the following are reports you would expect to review with your Board on a 100 Day basis NRS 116.31083, Section 6: A. Income Statement & Balance Sheet B. Revenue and Expenses for Reserve & Operating Accounts C. Current Status of any Civil Action D. All of the above 7. What method of accounting must be used since October 2005 to prepare the financial statements? A. Accrual Basis 9-2021 32  B. Cash Basis C. Modified Cash Basis D. Modified Accrual Basis 8. Asking members of the Board to address any financial questions to the Community Manager before a Board of Director’s meeting will do all of the following except: A. Make for shorter meetings. B. Allow the Community Manager to be prepared and answer questions knowledgably at the meetings. C. Limit delays in getting answers to questions on the financials. D. Make for longer meetings. 9. A common-interest community should always have a collection policy regardless of any provisions in the CC&R’s to: A. Provide the authority to collect assessments B. Provide consistent handling of collection activities and satisfy Nevada law. C. Provide the right to foreclose on a delinquent owner D. Provide a way to treat the Board differently than the owners 10. If the annual budget of an association is $150,000 or more, an audit must be conducted by a certified public accountant AT LEAST every: NRS 116.31144 A. 2 Years B. 3 Years C. Year D. 4 Years 11. Common-interest community reserve bank accounts must be: A. Co-mingled with the Management Company accounts B. Reconciled and reviewed on an annual basis. C. Used for the intended purposes of repairing, replacing or restoring those items identified in the reserve study. D. Kept on a Cash only basis to satisfy the law. 12. Which of the following does not apply to a regular Audit? A. Provides for more assurances than a review. B. Is the highest level of assurance that the financial statements are presented fairly in conformance with generally accepted accounting principles. C. Requires a review of the common-interest community’s minutes. D. It is established to look for fraud. 13. Which of the following statements is a true statement? A. A Collection Company or Trustee Company does not need to be licensed in the State of Nevada to collect for community associations. B. A Manager does not need a license to collect assessments past the lien point as long as the Board approves the action in their contract. C. A law firm or title company must have a collection license to collect assessments in Nevada. D. A Manager or Management Company does not need to have a collection license if they proceed with collections up tto and including the placing the lien status. 9-2021 33 14. Does a copy of the Collection Policy need to go out with the Budget annually? A. Yes B. No 15. Does a copy of the Investment Policy need to go out with the Budget annually, by Nevada law? (But, what did the instructors recommend)? A. Yes B. No 16. Funds in either type of account in a common interest community must be: A. Deposited in a federally insured institution authorized to do business in Nevada B. Analyzed in order to be placed in only the highest interest bearing account available. C. Must be deposited within 24 hours of receipt. D. Handled only by the Treasurer or other authorized officer in the common interest community 17. If you receive a payment that is not labeled as to how it is to be applied, what must it be applied to on an outstanding balance? A. Assessments B. Fines C. It depends on what the collection policy says. D. None of the above 18. Assistants can sign checks as long as the board puts it in the minutes and gives them that authority. True or False. A. True B. False 19. IF the budget is more than $45,000, but less than $75,000 a review needs to be conducted when? A. Every 2 years. B. Every 3 years, regardless of what the documents may state. C. During the year immediately preceding the year in which a reserve study is to be conducted. D. Every 4 years after an audit has been performed by the developer. 20. If an association has a budget that is under $45,000 they do not need to have an audit or review regardless of what the documents say. A. True B. False 9-2021 34 1. In accordance with NRS 116, the reserve study should do which of the following: A. Allocate funds for monthly operating costs over the next 24 months B. Allocate funds for repairs, replacement, and restoration of the major components over a period of the next 30 years. C. Detail exactly how much should be given back to the owners when under funded on the cash basis. D. Detail the amount that should be in the annual budget for maintenance for the normal pool service. 2. According to Nevada Law a Budget adopted by the Board is considered “passed” unless: A. A large number of the owners send in a proxy voting “no”, but do not constitute a majority. B. 50% plus 1 of the owners shows up at a meeting to vote against the budget. C. If the Owners don’t pay their assessments. D. A majority of the owners who are in attendance (not a majority of the entire membership), vote to disapprove the budget. 3. Major components of the common elements can include all of the following except: A. Pool Pumps B. Carpet Cleaning C. Exterior Painting D. Pool Heater 4. There are no requirements in the budget to have the reserve components, who prepared the study, the preparer’s qualifications or the type of funding. True or False. A. True B. False 5. Who has the ultimate decision making authority to determine if an individual is qualified to prepare a reserve study? A. The Board B. The Real Estate Division C. The Ombudsman’s Office since studies are required to be filed with them. D. The owners in the community 6. A reserve study provider has to take pre-licensing education and post licensing education since R050-13 was adopted? True or False A. True B. False 7.What are the three types of funding methods that associations’ can use when funding for their reserves? Which is the most correct answer? A. Full Funding, Threshold Funding and Baseline Funding B. Cash flow Funding, Full Funding & Threshold Funding C. Threshold Funding, Complete Funding & Estimated Funding D. Cash flow Funding, Complete Funding & Baseline Funding 9-2021 35 8.What happens if the budget is not ratified by the owners at a meeting called for that purpose? NRS 116 31151, Section 3 - Which is the best answer? A. The board can raise the assessments by 20% regardless of what the documents may state as Nevada law allows the increase. B. The board has to call another meeting for the owners to show up and ratify the budget as they can’t collect assessments until they have a ratified budget. C. The board is required to use the current ratified budget until the board makes a decision on whether to try again or not. D. There are no requirements in Nevada law regarding the budget as the board needs to raise the assessments as needed to maintain the property and pay their bills. 9. The association must have a collection policy to do what. A. Comply with Nevada law. B. To show the owners they mean business. C. To send only to the collection company. D. To send only to the attorney. 9-2021 36  1. How often does the new reserve study have to be performed by a person registered as a reserve specialist with the Division? A. Every Year B. Every Year Before the annual meeting. C. Every 5 years. D. When the board is planning on making improvements 2. Which is the most risky type of funding plan to use ultimately for the owners? A. Full funding B. Base Line funding (Some people call it erroneously a cash flow study) C. Threshold funding D. Composite funding 3. Out of the following people, which is the most correct answer on who can perform the tasks required to prepare a reserve study? A. Community Manager under his Community Manager license. B. A reserves study specialist registered with the Nevada Real Estate Division in this State and meet the NRS 116 qualifications. C. A reserves study specialist from any State in the nation as long as they are registered with their Real Estate Division and meet the NRS 116 qualifications. D. Any homeowner who has a Nevada contractor’s license and lives in the association. 4. The three types of studies that can be prepared by the reserves study specialist are: A Full study, An Update without a site inspection, and an Update with a site inspection. True or False? A. True B. False 5. Who has the ultimate responsibility for verifying the major component list? A. The Manager B. The Developer C. The Landscape Architect D. The Board of Directors 6. All Landscaping is typically not a reserve component since it cannot be quantified. True or False? A. True B. False 7. A reserve component must have a life of more than 1 year and less than 30. True or False? A. True B. False 8. Which of the below satisfies the requirements of a 5-year study? A. An Update without a site visit B. An Update with an inspection of only new components 9-2021 37  C. An Update with an inspection of all components D. None of the above. 9. How often does the board need to review and make any adjustments to the reserve study’s funding plan? A. Quarterly B. Monthly C. Annually D. Every Five Years E. None of the above. 10. Where does a copy of the annual Association Registration Form 562 need to be sent? A. Attorney General’s Office B. Ombudsman’s Office C. NRED Administrator’s Office D. Secretary of State’s Office 11. In Nevada, anyone can perform reserve studies if they do which of the following: A. Just take 3 hours of Nevada law. B. Take 3 Hours of Financial Class after they get their license. C. Swear that they are qualified. D. All of the above. 12. One of the reasons that Nevada requires reserve studies is to eliminate the need for special assessments. True or false. A. True B. False 13. A reserve study is based upon which of the following? A. Assumptions and Estimates B. Only hard bids from contractors servicing the community. C. A Budget worksheet created in the NRED D. All of the above. 14. What are the two main parts of a reserve study? A. The fifth year’s financial status of the reserves and guestimates B. The Current Status of the reserve fund and an Equitable Funding Plan. C. The Balance Sheet and Operating Statement D. None of the above. 15. A good source for a reserve specialist to use for costing and historical information about the common areas are: A. The Board B. The Manager C. Other Experts providing services to the CIC D. All of the Above. 9-2021 38 1. Which of the following is not a type of insurance coverage that you would expect your agent to recommend to the common-interest community to purchase that are not normally required by the documents or Nevada Law: A. Non-owned auto and loss assessment coverage B. Boiler and Machinery C. Earthquake and Flood D. Personal auto liability coverage. 2. Typical exclusions from common-interest liability policies might include which of the following except: A. Building ordinance or law. B. Nuclear hazard C. Increased cost of construction D. Liability Coverage 3. Which of the following type(s) of insurance would you request to cover the wiring in a condominium project, but may not be covered by all companies for this coverage? A. Workers Compensation B. Boiler (Machinery & Equipment) C. Loss Assessment D. Directors and Officers Coverage 4. The common-interest community industry recommends (and in some cases dictates by law) the following type(s) of insurance regardless of whether the association has or does not have employees: A. Worker’s Compensation Insurance B. Liability Insurance C. Property Insurance D. All of the above 5. What Purpose does Insurance Endorsements Provide? A. Take away coverage B. Brings in more coverage, but could take away some coverage. C. Endorsements play no part in insurance. D. Provide coverage only for the Directors in the association 6. How much Fidelity/Crime Insurance coverage must an association have? NRS 116.3113 A. 3 months worth of combined assessments and the amount in the reserve accounts or up to $5,000,000. B. Only as much as the board feels is necessary to protect their money? C. Only the amount stated in the CC&R’s is required. D. 1 month worth of operating expenses and the amount in the reserve accounts or up to $3,000.000. 9-2021 39 7. If an insurance agent works for just one company and can only recommend what that one company has to offer, that agent is known as a what? A. Captive Agent B. Dedicated Agent C. Broker D. Dedicated Agent 10. When talking about Cybercrime and Fidelity Insurance coverage, what is the best answer? A. They are the same coverage and we don’t need separate policies? B. They are two separate coverages and we need to talk with the agent about coverage for both. C. Cyber Crime is always part of the Fidelity Insurance coverage policy. D. The Associations Fidelity and Crime insurance, both, will always cover the management company as well. 9-2021 40  1. NRS 116.31038 defines exactly what the developer is required to give the common interest community at transition, which includes all of the following except: A. Plans and Maps B. Insurance Policies C. Developer Company Financial Statements D. Property of the Association 2. Can the Developer transition early if they wish before the required percentage? NRS 116.31032 Section 1 A. Yes B. No 3. At what percent of the units sold and closed escrow must the Developer give up control of the Board if the units are under 1,000 after 10-1-15? A. 50% B. 75% C. 25% D. 100% 4. At what percent of the units sold and closed escrow must the Developer give up control of the Board if the units are over 1,000 after 10-1-15? A. 25% B. 50% C. 75% D.90% 5. What does transition to the owners from Developer mean? A. Control over who the developer can appoint to the board. B. Control of the board and decisions made by the board for the association. C. Control of who will set the assessments only. D. Control of only who will fill replacements on the board. 6. When is the declarant required to step down off the board to give up the majority vote? NRS 116.31032, Section 1 A. The law defers you to what the declarant has placed into the documents and that must be followed as the declarant has a considerable financial investment in the property and should be able to sell his or her property without interference from the owners. B. 60 days after 75% of the units that may be created are conveyed to unit’s owners other than a declarant, regardless of any period shown in the CC&Rs or 5 years after units have ceased to sell or five years after any right to add new units has lapsed. C. 120 days after 80% of the units that may be created and sold to unit’s owners other than the declarant, regardless of any period shown in the CC&R’s or 4 years after units have ceased to sell. D. There is no correct answer. 9-2021 41 7. If the declarant has not paid his or her share of the reserves, how long does he have to pay the association? NRS 116.31038 Section 3 (a) A. 5 Years B. 10 Years C. 3 Years D. 2 years 8. How long does the declarant of a converted building have to pay the reserve deficit that may exist on a unit he is selling? Which is the best answer. NRS 116.310395 A. At the time of close of escrow of a unit in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit allocated to all units that may sell within 1 year. B. There is no requirement for the developer to pay for any reserve deficit that may exist as he can opt out of it in the Public Offering statement. C. At the time of close of escrow of a 60% of all units in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit due for those units included at that time. D. At the time of close of escrow of a unit in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit allocated to that unit. 9. What best defines the amount that the declarant of a converted building needs to pay to fund the reserves? NRS 116.310395 - Which is the best answer? A. The amount necessary to replace the major components of the common elements needing replacement within 10 years after the date of the first close of escrow of a unit. B. The amount necessary to replace the major components of the common elements needing replacement within 5 years after the date of the first close of escrow of a unit. C. amount necessary to replace the major components of the common elements needing replacement within 3 years after the date of the first close of escrow of a unit. D. amount necessary to replace the major components of the common elements needing replacement within 1 year after the date of the first close of escrow of a unit. 9-2021 42 1. When an owner plans to sell his home and requests a certificate containing specific information identified in NRS 116.4109.2 that he needs to disclose to the buyer, how may days does the Association have to furnish this information? A. 90 Days B. 30 Days C. 10 Days D. 15 Days 2. If a unit’s owner has provided a buyer with the certificate and the information required by Nevada law and the purchaser is now demanding that he or she wants the reserve study as well, what best describes the purchaser’s rights? A. The purchaser is only entitled to the summary page. B. The Association must make the entire reserve study available for inspection, examination, photocopying or auditing available to the seller to provide to the purchaser. C. A complete copy of the entire study must be mailed, faxed or electronically transmitted to the purchaser within 10 days. D. The Association should only take direction from the Buyer as he or she will be the new owner and the manager does not want to start off on the wrong foot. 3. To whom should the Community Manager provide disclosure information in a purchasing transaction? A. The Buyer B. The Seller 16. The Real Estate Agent 17. The Title Company 4. A Public Offering Statement is given to each owner prior to purchase by the Developer for which purpose? A. To allow the owner to provide critical information to their lender. B. To disclose any material facts that may influence an owner’s decision in purchasing the property. C. To disclose where easements are located on the common areas. D. To notify owners that they may lose their home if they don’t pay their assessments. 5. True or False – Management companies can no longer collect a true transfer fee created by the developer in the resale process? A. True B. False C. It Depends 6. How many days must the association/manager guarantee that the information provided to the seller in the process will be good? NRS 116.4109, Section 1 (b) A. 10 Days B. 15 Days C. 60 Days D. 30 days 9-2021 43 7. When purchasing a home in a CIC, how long do you have to cancel a sale after you receive the governing documents? NRS 116.4109 Section 2. Which is the most correct answer? A. The purchaser may, by written notice cancel the contract of purchase until midnight of the 5th calendar day following the date of receipt of the resale package. B. The purchaser may, by written notice cancel the contract of purchase until midnight of the 10th calendar day following the date of receipt of the resale package. C. The purchaser may, by written notice cancel the contract of purchase until midnight of the 3th calendar day following the date of receipt of the resale package. D. Once you receive the resale package, you have 24 hours to give written notice to the seller that you wish to cancel the contract of purchase. 8. How much can the management company charge to prepare a resale package? NRS 116.4109, Section 4 (b). Which is the best answer of the 4? A. The association may charge whatever is in the management agreement to the unit’s owner plus a fee to put into their capital account regardless of what the documents say. B. The association may currently charge the unit’s owner a reasonable fee to cover the cost of preparing the certificate furnished pursuant to the 10 day requirement, but the fee must be based on the actual cost the association incurs to fulfill the requirements of this law. C. The association may not charge more than $210.00 for the resale package based on the Commission’s regulation. D. There are no laws in Nevada surrounding this area and is it basically buyer beware and the purchaser and seller need to decide who will pay any charge that is levied. 9. Which of the following does not need to be included in the resale package that is required under NRS 116.4109 to a seller to give to the purchaser. A. Plats and plans initially recorded by the developer. B. A statement of any transfer fees, transaction fees, or any other fees associated with the resale of a unit. C. A statement describing all current and expected fees or charges for each unit. D. A copy of the current budget of the association and current year to date financial statement for the association. 9-2021 44 1. Which item below is a good way to determine if the common-interest community is faced with one or more defects in the community? A. Circulate a questionnaire to all homeowners allowing them to give input on what type of problems, if any, they are experiencing. B. The Community Manager should make a determination solely using their expertise to look at the project to decide if action is warranted. C. Checking to insure that the property was inspected by the City inspectors. D. Checking to see if all contractors were properly licensed and bonded. 2. Selling a home during litigation can be slightly harder, because of the following reason (pick the best answer): A. Some lenders do not understand the litigation process. B. All buyers will not purchase during litigation C. Nevada Revised Statutes make it harder. D. All lenders will not lend during litigation. 3. There are two types of defects which limit the time frames when construction defect claims can be filed. The Board needs to be aware of what two. A. Maintenance and Construction B. Flood and Earthquake C. Patent and Latent D. Actual and Practicable 4. Who, in NRS 116.662 pays the witness fees and mileage for the witness in a hearing before the Commission for Common Interest Communities and Condo Hotels? A. The Nevada Rea; Estate Division when anyone calls the witness to appear. B. The Commission when anyone calls the witness to appear. C. The Hearing Panel when anyone calls the witness to appear and they subpoena the person. D. Paid by the party who requested the witness unless subpoenaed at the request of the Commission instead of one of the parties. 5. Based on the 2015 new law, what is the outside timeframe to file a lawsuit if the builders built a defective home? A. Ten Years B. Two Years C. Six Years D. There are no limits 6. The manager has no responsibility to advise the board regarding issues of concern when she or he see issues that may be brought forward by owners that may be starting the statutes of limitations? True or False A. True B. False 9-2021 45  7. On 2-24-15, what happened to the laws on construction defects? Pick the most correct answer. A. There were no changes. B. The Association can no longer start class action suits for the owners as a group. Each individual owner must sign up for the action or they are not included. C. Construction defect lawsuits will no longer be allowed. D. The other side to the lawsuit never needs to be allowed to attend any inspections on alleged defects. 9-2021 46