Florida Broker Practice Exam

Which condominium document typically provides a summary of common expenses?

1. Declaration of condominium

2. Estimated operating budget

3. Rules of the association

4. Articles of incorporation

The correct answer is: Estimated operating budget

The estimated operating budget is the document that typically provides a summary of common expenses associated with the condominium. This budget outlines the projected income and expenses for the condo association, detailing costs for maintenance, utilities, insurance, and contributions to reserves. Having this information is crucial for homeowners, as it helps them understand their financial responsibilities regarding shared expenses. The declaration of condominium primarily establishes the existence of the condominium and defines the unit boundaries, use restrictions, and ownership rights, but it does not specifically itemize expenses. The rules of the association outline the guidelines for living in the community, such as pet policies and noise restrictions, rather than financial details. Articles of incorporation are legal documents that establish the condominium association as a corporation, but they do not focus on operating expenses or budgetary concerns. Thus, the estimated operating budget is key for members to manage and anticipate their costs effectively.