Chapter 3- Creation, Sale, and Regulation of Community Associations.

What determines how a given parcel of land may be used?

• The site plan
• Zoning regulations
• The developer's filing document
• The community development master plan

All of the following are true regarding the creation of a community association EXCEPT:

• It is created when a developer files the required legal documents with the applicable legal entity. It is created when a developer files the required legal documents with the applicable legal entity.
• The legal documents filed by the developer identify a specific property as a specific type of community association.
• The community association must be incorporated.
• The property must have at least one purchaser of a unit or parcel.

What is the purpose of the prospectus?

• It creates the entity that will operate and manage the association.
• It summarizes the sales contract, escrow requirements, rules, and other pertinent information.
• It is a lease between the owner and the developer.
• It is a drawing or map that shows precise legal boundaries and location of improvements to the law.

The legal documents that the developer must file with various government offices for units or parcels for sale should meet all of the following requirements, EXCEPT:

• They should address the use of the area and its maintenance, maintenance, and operation of the property
• They should be bound into a book, referred to as “the documents.
• They should be enacted into law by the local government commission or council.
• They should provide copies to prospective buyers or lessees at the time of contract

All of the following statements are true about disclosures EXCEPT:

• The prospective buyer should not execute the sales contract until they have read the disclosures that the developer has withheld.
• Disclosures required by statute must be included in the prospectus.
• If all disclosures required by statute are not provided by the developer, the prospective buyer can cancel the contract without penalty.
• A prospective buyer can withdraw from a sales contract, within the rescission period that begins the date they receive the statutory disclosures.

What is a rescission period?

• It is the time period in which the developer must file the formal documents with the local government.
• It is the number of days in which the developer or agent of the seller must receive notification of mortgage approval or the full sales price is placed in escrow, after which the contract may be considered void.
• It is the time period after the prospective buyer receives the prospectus, by which they must accept, or reject, the contract for sale.
• It is the number of days, after which the prospective buyer/lessee receives all required documents that they can withdraw from the sale without penalty.

7. All of the following are true regarding the structure of Florida community associations, EXCEPT:

• All corporations created after January 1, 2017, are required to be community associations.
• Community associations may be for profit or not for profit.
• For-profit corporations are governed by FS 607 and not for-profit corporations are governed by FS 617.
• All community associations created after January 1, 1977, are required to be cooperative corporations.

Condominium associations are governed and regulated by which statute and rules?

• F.S. 718 and F.A.C. 61B-15 through 25, 45, and 50
• F.S. 719 and F.A.C. 61B-75 through 79, 45, and 50
• F.S. 720 and F.A.C. 61B-80 through 81, 45, and 50
• F.S. 718 and F.A.C. 61B-75 through 79, 45, and 50

Homeowners’ associations are governed and regulated by which statute and rules?

• F.S. 718 and F.A.C. 61B-17 through 24
• F.S. 719 and F.A.C. 61B-75 through 79,45; and 50
• F.S 720 and F.A.C 61B-80 through 81; and 85
• F.S. 719 and F.A.C 61B-17 through 24; 45; and 50

Under the corporations Not For Profit Act (F.S. 617), which power is not provided to community associations that are organized as not for profit corporations?

• Acquire property
• Conduct the bussiness of the association
• Lend money for association purposes
• Incarcerate members who commit crimes on association property