Florida Community Association Manager Practice Exam

Which statement is true regarding the corporate status of an association upon the termination of a condominium?

1. The association must dissolve

2. The association's corporate status remains unchanged

3. The association must re-register

4. The association is automatically disbanded

The correct answer is: The association's corporate status remains unchanged

The correct statement regarding the corporate status of an association upon the termination of a condominium is that the association's corporate status remains unchanged. In Florida, when a condominium is terminated, the association does not automatically dissolve or disband. Instead, it continues to exist in a corporate capacity, often to wind up its affairs, handle remaining financial matters, or distribute any remaining assets among the members. The corporate status provides the legal framework necessary to manage these post-termination responsibilities effectively. This understanding is important because it helps community association managers and board members to navigate the legal processes associated with the dissolution of a condominium while ensuring that the association can fulfill its obligations, including handling liabilities and distributing assets adequately.