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CMCA Study Guide
1.Articles of incorporation: Bring the corporation into existence, define
its basic purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board of directors
2.Bylaws: Formally adopted governing regulations for the
administration and management of a community association
3.CC & Rs (Covenants, Conditions & Restrictions): The governing
documents that dictate how the homeowners association operates and what rules the own- ers—and their tenants and guests — must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws 1 / 4
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4.Community association: A group of owners who wish to provide a
communal basis for preserving, maintaining, and enhancing their homes and property
5.Condominium: A living unit fully owned by an individual with an
undivided interest in the common elements of the community. The community association itself owns no real estate as an association
6.Cooperative: Wherein an individual owns stock or membership in the
cooper- ative, and holds a proprietary lease or occupancy agreement for his or her living unit
7.Declaration: Used interchangeably with CC & Rs
8.Governing documents: Documents which provide for the legal
structure and operation of the community
9.Indemnification: to exempt an individual or entity from responsibility
for claims made against the organization and to reimburse the individual or entity for dam- ages or expenses incurred as a result of 2 / 4
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such claims
10.Master association: An organization of homeowners in a large
condominium or planned unit development (PUD) which includes representatives from other, smaller homeowner organizations
11.Mixed use development: A development which is designed to mix
two or more "uses" of land together (i.e. a shopping center which offers office space for dentists) 3 / 4
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12.Planned community: the most common type of community
association, where an owner owns his or her lot and/or living unit and the community owns any common areas, such as tennis courts and roads for the use and benefit of the lot owners
13.Proprietary lease: A rental agreement between a cooperative
housing corpo- ration and a share holder allowing use of a certain unit in the premises
14.Public offering statement: A disclosure statement prepared by a
developer that contains all material facts about a property offered for sale and that must be provided to a prospective purchaser in accordance with applicable state or federal law
15.Resolution: A motion that follows a set format and is formally
adopted by the board of directors
16.Statute: A formal written enactment of a legislative authority that
governs a country, state, city or county
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