Florida Cam Final Exam Questions and Answers 2024

Florida Cam Final Exam Questions and Answers 2024

• An association should establish reserves for ✔ Because there are statutory requirements that

mandate reserves in certain circumstances.

• What is a balance sheet? ✔ A statement of the association's financial position at a particular

moment in time

• If an association files its federal income tax return using Form 1120, it must pay taxes

on any excess revenue over expenses unless: ✔ (a) The excess is returned to its members.

• An association with a total annual revenue of less than $150,000 is required to

prepare which type of annual financial report? ✔ (c) Cash receipts

• If an HOA provides a notice instead of a copy of the financial report to its members,

within what period must it provide a copy of the annual financial report, upon written request of a member? ✔ (c) Ten business days

• If a condominium board decides to send a notice to its members instead of a copy of the

financial report, what statement must be included?✔ (b) A copy of the financial report will be mailed or hand- delivered, without charge, within five business days after receipt of the member's written request.

• The annual financial report or a notice of its availability upon request, must be mailed

to the members of a condominium or HOA within: ✔ (b) Twenty-one days after the report is completed but not more than 120 days after the end of the prior fiscal year or other date provided in the bylaws

• All of the following are true of an estoppel certificate ✔ (a) It is requested by title and

mortgage companies on sales, transfers, and re- financings. 1 / 2

• All of the following are true of an estoppel certificate ✔ (b) It is legally binding even if

factually incorrect.

• All of the following are true of an estoppel certificate ✔ (d) It may include a statement

of future costs of correcting a member's use restriction violations.

• What is a qualifying offer? ✔ (a) A written offer of a member to pay all amounts secured

by a lien of the association plus amounts accruing during the pendency period of the offer

• A condominium or cooperative is required to provide written notice to the member of its

intention to foreclose a claim of lien if it is to retain its right to recover attorney's fees

and court costs: ✔ (a) 30 days

• All of the following are true of liabilities acquired upon transfer of title to a cooperative

unit ✔ (b) In an involuntary transfer, the new member is jointly and severally liable with the previous member for all unpaid assessments against the previous member.

• All of the following are true of liabilities acquired upon transfer of title to a cooperative

unit ✔ (c) The new member's liability may be voided by their waiver of their right to use the common area.

• All of the following are true of liabilities acquired upon transfer of title to a cooperative

unit ✔ (d) The new member's liability for unpaid assessments, if the unit was acquired from the association, includes those that accrued while the association has title to the delinquent property.

• An association must obtain, depending on statutes and its documents, insurance coverage

that protects ✔ (a) Financial loss resulting from damage to real property

• An association must obtain, depending on statutes and its documents, insurance coverage

that protects ✔ (b) Financial loss resulting from fraud and embezzlement by association directors and officers

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