Certified Manager of Community Associations (CMCA) Practice Exam 2026 – All-in-One Guide to Achieve Exam Success!

The management contract is essential as it serves as a formal agreement that outlines the responsibilities, expectations, and obligations of both the management firm and the community association. This contract specifies the terms of services provided by the management firm, including financial management, maintenance of common areas, and communication responsibilities with residents.

Having a well-defined management contract helps ensure that both parties understand their roles and can hold each other accountable. It typically includes provisions regarding duration, compensation, performance standards, and termination clauses, which are crucial for establishing a clear and professional relationship.

In contrast, the other options do not serve this formal purpose. A management audit evaluates the effectiveness of existing management practices but does not establish a relationship. A management plan outlines how the community will be managed but lacks the binding agreement that a contract provides. A job description details specific tasks for individual roles within the management but does not encompass the broader relationship between the management firm and the community association.