CMCA Exam Flashcards

Q: What is the CMCA exam pass rate?

CAMICB does not publish official CMCA pass rates. Third-party prep providers and industry surveys estimate a first-time pass rate in the 65-75% range, but treat that figure as an unofficial estimate rather than a CAMICB statistic.

Q: How is the CMCA exam scored, and what is the passing score?

The CMCA uses a criterion-referenced cut score set through a Modified-Angoff psychometric process. Your raw score (correct answers out of the 100 scored items) converts to a scaled score between 100 and 800, and 600 is the minimum passing scaled score. CAMICB does not publish a fixed percentage-correct target because the raw-to-scaled conversion is adjusted slightly for each exam form's difficulty.

Q: What happens if I fail the CMCA exam - is there a mandatory waiting period?

CAMICB has no mandated waiting period and no cap on the number of attempts; you can submit a retake application and pay the $200 retake fee as soon as you are ready. CAMICB recommends waiting six to eight weeks to allow time for further study, and candidates who used the two-years-of-experience prerequisite waiver must complete a different prerequisite pathway (education or license/credential) before retaking, since that waiver can only be used once.

Q: What are the CMCA exam prerequisites?

Candidates must complete one of three pathways before applying: the Education Pathway (an approved course such as CAI's M-100), the Experience Pathway (at least two years as a community association manager, usable only once as a prerequisite waiver), or the License/Credential Pathway (holding an active, approved state license such as Florida's FLCAM, California's CCAM, Nevada's NVCAM, Illinois's ILCAM, or Arizona's CAAM).

Q: How do I maintain the CMCA credential after passing?

CMCA holders must pay a $135 annual service fee and recertify every two years by completing at least 16 hours of approved continuing education, with the recertification application due each April 1 or October 1 depending on the original certification date. Missing either requirement, after a 10-week grace period, results in termination of the credential.

Q: What are the six CMCA content domains and their weights?

Effective December 2024, CAMICB's job-analysis-driven blueprint weights the exam as: Governance and Compliance (23%), Financial Management (20%), Meetings and Events (18%), Risk Management (15%), Property Maintenance (14%), and Contracting (10%). This replaced an eight-domain outline and notably expanded Meetings and Events from 10% to 18% while eliminating the old Human Resources domain.

Q: What is the CMCA exam format and fee in 2026?

The CMCA is a 2.5-hour, 120-question, closed-book, computer-based exam administered at Pearson VUE testing centers - 100 questions count toward your score and 20 are unscored pilot items you cannot identify during the test. The 2026 application fee is $360 (covers the first year of certification), and each retake costs $200.

Question 1

Governing Document Hierarchy

Accepted Answer

From highest to lowest authority: federal/state law, then the declaration (CC&Rs), then articles of incorporation, then bylaws, then rules and regulations. When two documents conflict, the higher-ranking document always controls.

Question 2

Declaration (CC&Rs)

Accepted Answer

The recorded document that creates the covenants, conditions, and restrictions establishing the property regime and the association itself. It ranks just below federal/state law and is typically the hardest governing document to amend, often requiring a supermajority owner vote.

Question 3

Articles of Incorporation

Accepted Answer

The document that forms the association as a legal corporate entity (usually nonprofit). It exists mainly to create corporate status and grant the association legal standing to hold property, contract, and sue or be sued.

Question 4

Bylaws vs. Rules and Regulations

Accepted Answer

Bylaws govern corporate operations such as board elections, meetings, and officer duties, and rank above rules. Rules and regulations implement the authority granted by the bylaws and declaration, cover day-to-day conduct, and are the easiest document to amend - but they can never conflict with a higher-ranking document.

Question 5

Due Process Before a Fine

Accepted Answer

Before an association can impose a fine or suspend privileges, the alleged violator is generally entitled to written notice of the violation, an opportunity to be heard (a fining hearing), and often a right to cure the violation within a set period. Skipping these steps can void the penalty even if the violation was real.

Question 6

Business Judgment Rule

Accepted Answer

Protects board members from personal liability for decisions made in good faith, with reasonable care, and within the scope of the board's authority - even if the decision later turns out badly. It does not protect decisions made with fraud, self-dealing, or gross negligence.

Question 7

Board Member Fiduciary Duty

Accepted Answer

Board members owe the association a duty of care (act as a reasonably prudent person would), a duty of loyalty (avoid conflicts of interest and self-dealing), and a duty to act within the association's stated purposes and governing documents.

Question 8

Fair Housing Act - Seven Protected Classes

Accepted Answer

Race, color, religion, national origin, sex, familial status, and disability. Association rules, architectural decisions, and enforcement actions that disproportionately burden any of these classes can trigger fair housing liability, regardless of intent.

Question 9

Condominium vs. Homeowners Association vs. Cooperative

Accepted Answer

In a condominium, owners hold title to their individual unit plus an undivided interest in common elements. In an HOA/planned community, owners hold title to a separate lot plus membership in the association. In a cooperative, residents own shares in a corporation that holds title to the whole property and occupy their unit under a proprietary lease.

Question 10

Board Committees

Accepted Answer

Committees established by the board (e.g., architectural review, finance, social) are generally advisory and make recommendations, not final decisions, unless the governing documents specifically delegate binding authority to them. The board retains ultimate responsibility.

Question 11

Governance Transition (Turnover)

Accepted Answer

The formal process of transferring control of the association from the developer to an owner-elected board once statutory or declaration-defined triggers are met (e.g., a percentage of units sold). Transition typically includes a turnover study/audit of finances, reserves, and construction to protect the incoming board.

Question 12

Unrecoverable Debt & Collection Policy

Accepted Answer

A board-adopted collection policy defines the escalation steps (late notice, late fee, lien, referral to counsel) for delinquent assessments. Debt becomes 'unrecoverable' when collection costs would exceed the amount owed or the owner is judgment-proof (e.g., bankruptcy, foreclosure by a superior lienholder) - the board must still follow a documented write-off process.

Question 13

Fully Funded Balance (FFB) Formula

Accepted Answer

FFB = (effective age / useful life) x current replacement cost, calculated for each reserve component. It represents the theoretical reserve balance if the association had funded the component perfectly since installation.

Question 14

Percent Funded

Accepted Answer

Percent funded = actual reserve balance / fully funded balance (FFB). Reserve studies generally flag associations below roughly 70% funded as at meaningful risk of special assessments; 100%+ is considered fully funded.

Question 15

Straight-Line vs. Cash-Flow (Pooled) Reserve Funding

Accepted Answer

Straight-line (component) funding sets aside money for each reserve component separately, which is simple to track but can produce uneven assessments. Cash-flow (pooled) funding combines all components into one fund and smooths contributions over time, which is more common in professionally managed associations.

Question 16

Operating Fund vs. Reserve Fund

Accepted Answer

The operating fund pays recurring day-to-day expenses (utilities, payroll, landscaping) and is refilled annually through regular assessments. The reserve fund pays for major repair and replacement of common-element components. The two funds must never be commingled - using reserve money for operating shortfalls is a common audit finding and can create fiduciary liability.

Question 17

Audit vs. Review vs. Compilation

Accepted Answer

An audit provides the highest level of assurance because the CPA independently verifies transactions and balances. A review provides limited assurance based on analytical procedures and inquiry, without verification. A compilation provides no assurance - the CPA simply organizes management's data into financial statement form.

Question 18

Assessment Lien and Foreclosure

Accepted Answer

When an owner falls delinquent, the association can record an assessment lien against the unit to secure the unpaid debt; if the debt remains unpaid, the association may ultimately foreclose on the lien. Foreclosure is a last-resort remedy pursued only after less severe collection steps (notices, late fees, payment plans) have failed.

Question 19

Cash Basis vs. Accrual Basis Accounting

Accepted Answer

Cash basis accounting records revenue and expenses only when cash actually changes hands. Accrual basis accounting records revenue when earned and expenses when incurred, regardless of when cash moves - GAAP-compliant association financial statements use the accrual basis.

Question 20

Association Tax Filing Options (Form 1120-H vs. Form 1120)

Accepted Answer

IRS Form 1120-H offers a simplified filing with a flat tax rate but only taxes non-exempt (non-membership) income, and requires at least 60% of income to be from members and 90% of expenses to be exempt-function costs. Filing the standard Form 1120 instead can sometimes produce a lower tax bill but requires full corporate-style reporting and is more complex.

Question 21

Reserve Fund Investment Priority

Accepted Answer

The tested investment hierarchy for association reserve funds is safety first, liquidity second, and yield (return) third - reserve funds should never be placed at meaningful risk of loss chasing higher returns, since they exist to fund guaranteed future repairs.

Question 22

Budget Formulation & Common Threats

Accepted Answer

A board-approved annual budget must estimate operating costs and reserve contributions using historical data, contracts, and reserve study funding plans. Common threats to accurate budgeting include inflation on service contracts, deferred maintenance becoming an emergency expense, and underfunded reserves forcing special assessments.

Question 23

Quorum vs. Proxy

Accepted Answer

Quorum is the minimum number of members (in person or represented) who must be present for a meeting's business to be valid, set by the bylaws or statute. A proxy is a written delegation of one member's vote to another person and counts toward meeting quorum, but it only authorizes a vote - it does not by itself satisfy every meeting requirement.

Question 24

Cumulative Voting

Accepted Answer

A voting method that lets an owner concentrate all of their available votes onto one or a few board candidates rather than casting one vote per open seat, which can help minority-interest owners elect a preferred candidate. It must be authorized by statute or the governing documents to be used.

Question 25

Open Session vs. Executive (Closed) Session

Accepted Answer

Open session covers routine board business (budget votes, rule adoption) that owners may attend. Executive session excludes ordinary owners and is reserved for sensitive topics like pending or threatened litigation, personnel matters, contract negotiation strategy, and communications protected by attorney-client privilege.

Question 26

Meeting Notice Requirements

Accepted Answer

Governing documents and state statutes set minimum notice periods and required contents (date, time, location, agenda) for board and membership meetings. A defective notice can void actions taken at that meeting, even if the underlying decision was otherwise proper - courts tend to enforce notice requirements strictly.

Question 27

Board Meeting Minutes

Accepted Answer

Minutes are the official written record of a meeting - what was decided and who moved/seconded/voted, not a verbatim transcript of discussion. Minutes from executive session are typically kept separately and may be redacted or withheld from general owner records requests to protect privileged content.

Question 28

Board Member Recall / Removal

Accepted Answer

Most governing documents and state statutes allow owners to remove a sitting board member before their term ends through a formal recall process, typically requiring a petition and a majority or supermajority vote at a special meeting - distinct from simply not re-electing them at the next annual election.

Question 29

Secret Ballot in Association Elections

Accepted Answer

Many state statutes and governing documents require board elections to be conducted by secret ballot to protect voters from pressure or retaliation, meaning the completed ballot cannot be traceable back to the individual owner who cast it.

Question 30

Adjourned Meeting Quorum Rule

Accepted Answer

If a meeting fails to reach quorum, many governing documents allow the meeting to be adjourned and reconvened at a later date under a reduced quorum requirement, so routine association business is not permanently blocked by low turnout.

Question 31

Written Consent in Lieu of a Meeting

Accepted Answer

Some governing documents and statutes allow the board or membership to take official action by unanimous (or otherwise specified) written consent instead of holding a live meeting, provided the consent is properly documented and distributed.

Question 32

Property Insurance

Accepted Answer

Covers physical damage to the building structure and common-area property from covered perils like fire, wind, and vandalism. It is the foundational policy in an association's insurance program and is usually required by the declaration and any mortgage lender.

Question 33

General Liability (GL) Insurance

Accepted Answer

Covers the association's legal liability for third-party bodily injury or property damage occurring on common property - for example, a visitor's slip-and-fall in a clubhouse or pool area.

Question 34

Directors & Officers (D&O) Insurance

Accepted Answer

Covers board members and officers against claims arising from their decisions and actions taken on the association's behalf (wrongful acts), such as an owner suing over a denied architectural request. It complements, but is distinct from, the business judgment rule's liability protection.

Question 35

Fidelity Bond

Accepted Answer

Covers losses from theft, embezzlement, or dishonest acts committed by association board members, employees, or the management company handling association funds - it protects the association's money, not its liability to others.

Question 36

Umbrella Policy

Accepted Answer

Provides an additional layer of liability coverage above the limits of the underlying general liability and D&O policies, triggered once a claim exceeds those base limits - inexpensive protection against unusually large judgments.

Question 37

Flood Insurance and Workers' Compensation

Accepted Answer

Flood damage is excluded from a standard property policy and requires a separate flood policy, often through the National Flood Insurance Program. Workers' compensation is a separate, typically state-mandated policy covering injuries to the association's own on-site employees, distinct from the GL policy that covers third parties.

Question 38

Certificate of Insurance (COI)

Accepted Answer

A document a vendor or contractor provides as proof of active insurance coverage (usually GL and workers' comp) before starting work for the association. Managers should track COI expiration dates, since work performed after a COI lapses leaves the association exposed.

Question 39

NFPA 25

Accepted Answer

The National Fire Protection Association standard governing inspection, testing, and maintenance of water-based fire protection systems (sprinklers, standpipes). Associations with fire sprinkler systems must schedule NFPA 25-compliant inspections on a recurring basis.

Question 40

NFPA 72

Accepted Answer

The National Fire Protection Association standard governing fire alarm and signaling systems - installation, inspection, and testing. It is distinct from NFPA 25, which covers water-based suppression systems rather than alarm/detection equipment.

Question 41

Reserve Components

Accepted Answer

Major common-element assets with a limited useful life and a significant replacement cost - such as roofs, paving, pools, and elevators - that a reserve study identifies individually to calculate funding needs. Routine, low-cost items are typically excluded and funded from the operating budget instead.

Question 42

Preventive vs. Emergency Maintenance

Accepted Answer

Preventive maintenance is scheduled, routine upkeep performed to avoid failures (e.g., regular HVAC servicing), which is cheaper and protects property values. Emergency maintenance addresses an unplanned failure after it occurs and is typically far more costly - deferred preventive maintenance is a leading cause of emergency repairs.

Question 43

Transition Study

Accepted Answer

An engineering and financial review conducted when governance transitions from the developer to the owner-elected board, documenting the physical condition of common elements and reserve adequacy to identify any construction defects or underfunding the developer should address before turnover is complete.

Question 44

Integrated Pest Management (IPM)

Accepted Answer

A pest-control approach that combines monitoring, prevention, and targeted treatment to minimize pesticide use while controlling pests effectively - favored over routine blanket chemical spraying for cost and environmental reasons.

Question 45

Statute of Repose

Accepted Answer

An absolute deadline (set by state law, often 6-10 years after substantial completion) after which a construction-defect claim can no longer be brought, regardless of when the defect was discovered. It differs from a statute of limitations, which runs from discovery of the defect rather than from completion of construction.

Question 46

Request for Proposals (RFP)

Accepted Answer

A formal solicitation document the association sends to multiple vendors describing the scope of work needed, so the board can compare competing bids on a consistent basis rather than accepting the first or cheapest quote without context.

Question 47

Lien Waiver - Four Types

Accepted Answer

Conditional partial waiver (waives rights for a progress payment only if paid), unconditional partial waiver (progress payment already confirmed received), conditional final waiver (waives all remaining rights pending final payment), and unconditional final waiver (final payment confirmed received, project fully closed out).

Question 48

Vendor Approval & COI Tracking

Accepted Answer

Before awarding a contract, the manager verifies a vendor's licensing, insurance (COI), and references, and continues tracking COI renewal dates throughout the contract term so coverage never lapses while work is ongoing.

Question 49

Scope of Work / Statement of Work

Accepted Answer

The section of a contract that specifically defines the deliverables, tasks, materials, timeline, and standards the vendor must meet - the primary reference point when a dispute arises over whether the vendor performed as agreed.

Question 50

Contract Termination Clause

Accepted Answer

The contract provision defining how and when either party may end the agreement early - for cause (e.g., breach, poor performance) or for convenience - along with required notice periods and any early-termination fees. Reviewing this clause before signing protects the association from being locked into an underperforming vendor.

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