IREM CPM Exam Questions with All CORRECT ANSWER s
Question : The California Hills, a PUD outside of Riverside,
Calif., has completed three off our phases of development.There are currently 65 owned units. The final phase of the development will build out 25 more units. What type of management would best serve this community?
CORRECT ANSWER : This community presents a complex
management challenge that may best be met with full agency management services. If this CID is still under developer control they may be interested in keeping the financial records/budgets.
Question : A condominium association of detached new home
construction in Milwaukee is located in a former commercial district near downtown that has been the site of a great deal of condominium conversion activity. This CID has eight units, a parking structure, and a small recreational facility, which includes a fitness room and pool. What type of management would best serve this community?
CORRECT ANSWER : Financial-only management or self
management may work best for this community.
Question : A small apartment building with six units in
Washington, D.C., was converted to condominiums five years ago. The first floor was intended to be leased as office space but is currently vacant. The building was built in 1948.What type of management would best serve this community? List the range of circumstances where you think this community may potentially benefit from the services of a management company.
CORRECT ANSWER : While the small size of this condo
conversion might be make it feasible for self management or financial-only management, the age of the community indicates that some maintenance challenges may be at work.To meet these challenges full service management may benefit the community.
Question : The Shangri-La is a 200 unit, detached home,
planned unit development with attractive yards and large above-median priced homes. The expansive common areas include a par-3 and -4 golf course, water park, and game room. What type of management would best serve this community? List the pros and cons of outside management for this type of community.
CORRECT ANSWER : Answers will vary.
Question : Define the role of a member in the association (for
example, the unit owner) in the decisions of the Board of Directors.
CORRECT ANSWER : The basic principle of a common
interest development is that no one owner can act in isolation from the group. This means for one that they cannot break the terms of membership set out in the documents of the CID.Members may be nominated to the Board of Directors. Part of effective relationship management of the agent/board interaction is to understand that debate within the community is a natural part of the member/board decision making process.
Question : What are the potential advantages or disadvantages
of a high degree of participation among members of the association for the CID?
CORRECT ANSWER : The benefits to having highly active
and vocal volunteer participation in the association is that in fostering the belief in owners that their voice matters helps build strong community "buy in" (participation, or a sense of
"investment"),which in turn will create the best pool of candidates from which Boards and committees are appointed.The disadvantage to vocal participation is that it can bog down the ability of a CID to make decisions if membership contests the decisions of the Board of Directors.
Question : Explain why common areas are potentially one of
the benefits of CID membership
CORRECT ANSWER : In residential property the CID
allows individual investors to share in the benefits of common elements such as swimming pools, tennis courts, or landscaped common areas that an individual owner may not have been able to afford.
Question : Describe the advantages of having a management
agreement that spells out the relationship between the Managing Agent and CID in as detailed a manner as possible.
CORRECT ANSWER : The benefit of a detailed
management agreement lies in part in that it clarifies to whom the Managing Agent reports.