CMRAO General Licence Sample Questions

CMRAO General Licence preparation should feel more like management judgment than memorization. The route sits around governance support, financial controls, procurement, risk, records, communication, dispute handling, and accountability to the condominium corporation.

What this route should test

• board governance, management agreements, and role boundaries
• reserve fund, budget, arrears, insurance, and procurement controls
• records, notices, meetings, owner requests, and privacy
• complaints, conflicts, emergencies, and escalation judgment

Sample Exam Questions

Try these 12 original CMRAO General Licence sample questions. They are not official CMRAO questions.

Question 1

Topic: Governance

A board asks the manager to implement a policy that appears inconsistent with the condominium’s governing documents. What should the manager do?

• A. Implement it immediately because the board requested it
• B. Raise the inconsistency, document the concern, and recommend appropriate review before implementation
• C. Ignore the board
• D. Ask one owner to approve it

Best answer: B

Explanation: Managers support board decisions but should not ignore governance conflicts. The right response is to identify the issue and obtain appropriate review.

Question 2

Topic: Procurement

Why should competing quotes and scope details be documented for a major repair?

• A. To support transparency, budget control, and board decision-making
• B. To remove the board from the process
• C. To guarantee the cheapest quote is always best
• D. To avoid all future maintenance

Best answer: A

Explanation: Procurement documentation helps the board compare scope, cost, risk, and value. Cheapest is not always best, and documentation supports accountability.

Question 3

Topic: Reserve fund

A director wants to use reserve funds for an operating expense because the operating budget is tight. What is the best manager response?

• A. Transfer the funds silently
• B. Explain the purpose and restrictions around reserve fund use and recommend proper review
• C. Use reserve funds for any shortfall
• D. Ignore accounting controls

Best answer: B

Explanation: Reserve funds are not a general operating cushion. Managers should identify the issue and direct the board toward proper financial and legal review.

Question 4

Topic: Insurance

After a significant property loss, what should the manager prioritize?

• A. Documentation, insurer notification, emergency response, and board communication
• B. Waiting until all owners agree on fault
• C. Destroying maintenance records
• D. Promising every loss is fully covered

Best answer: A

Explanation: Loss response requires prompt documentation and communication. Managers should avoid coverage promises and preserve information needed for claims and recovery.

Question 5

Topic: Meeting conduct

At a heated owners’ meeting, several participants demand that the manager decide a disputed motion. What is the best response?

• A. Clarify the manager’s support role and follow the meeting process set by the corporation
• B. Decide the motion personally
• C. Cancel the meeting without authority
• D. Ignore the chair and take a vote by text message

Best answer: A

Explanation: The manager supports process, records, and administration. Meeting authority and decision-making belong to the proper governance participants.

Question 6

Topic: Records and privacy

A board member asks for employee records unrelated to a board-approved purpose. What should the manager do?

• A. Provide all records immediately
• B. Consider privacy, authority, and purpose before releasing information
• C. Post the records to all owners
• D. Remove the records from the file

Best answer: B

Explanation: Access to records must be balanced with privacy and proper purpose. Board membership does not automatically justify every information request.

Question 7

Topic: Conflict management

A director owns a company bidding on a condominium contract. What is the main issue?

• A. The board must manage a potential conflict and document the process
• B. The director’s company must always win
• C. The bid must be ignored without review
• D. Conflicts matter only after litigation

Best answer: A

Explanation: Related-party procurement can create conflicts. Proper disclosure, recusal where required, and documented board process are central.

Question 8

Topic: Arrears control

Why is consistent arrears follow-up important?

• A. It supports fairness, cash flow, and collection controls
• B. It is optional if the owner is popular
• C. It replaces the need for financial statements
• D. It allows the manager to waive all fees independently

Best answer: A

Explanation: Arrears processes protect the corporation’s finances and reduce arbitrary treatment. Managers should follow policy and authority limits.

Question 9

Topic: Emergency planning

What is the value of a written emergency response plan?

• A. It supports faster, documented, role-based action during urgent events
• B. It prevents every emergency
• C. It means no contractor review is needed
• D. It replaces insurance

Best answer: A

Explanation: Emergency plans clarify contacts, authority, communication, documentation, and responsibilities. They do not prevent every event or replace insurance.

Question 10

Topic: Manager accountability

A manager realizes an important owner notice was sent late. What is the best action?

• A. Hide the error
• B. Inform the appropriate parties, document the issue, and help determine corrective steps
• C. Blame owners for not asking sooner
• D. Delete the email log

Best answer: B

Explanation: Professional accountability means addressing errors transparently through the proper process. Concealment can increase risk.

Question 11

Topic: Dispute handling

Two owners are in a dispute about noise and each demands that the manager take their side. What should the manager do?

• A. Follow the corporation’s process, document facts, and avoid taking unsupported sides
• B. Choose the owner who complains more loudly
• C. Share one owner’s private emails with the other
• D. Promise a legal result

Best answer: A

Explanation: Managers should keep the process fair and documented. They should not become advocates for one side or disclose private information improperly.

Question 12

Topic: Financial reporting

What is the manager’s role in board financial review?

• A. Support accurate reporting, budget tracking, invoice controls, and questions to professionals where needed
• B. Replace the auditor
• C. Guarantee investment returns
• D. Approve all spending without authority

Best answer: A

Explanation: Managers support financial administration and board oversight. They do not replace auditors, boards, or professionals.

Related pages

• CMRAO Limited Licence
• Community Association Management
• IREM property-management pages