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Real estate glossary and exam guide

HOA bylaws: the association's decision-making playbook

When an owner says, 'The HOA decided,' the next question should be, 'Who decided, at what meeting, under what authority, with what notice and vote?' Bylaws turn association power into procedure. They tell owners how directors are elected, how meetings are called, what counts as quorum, who can sign, how vacancies are filled, and how records are kept. They are important, but they are not supreme. Statutes and the recorded declaration set the boundaries.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: HOA bylaws govern the association's internal decision-making, including boards, officers, elections, meetings, notice, quorum, voting, records, budgets, contracts, and administrative procedures. They operate below controlling law and the declaration. A board can exercise only granted authority, and a bylaw amendment must follow the applicable vote, notice, execution, and recording requirements. Condominium and non-condominium common-interest statutes differ.

Official section
National II.C.3: Association regulations and bylaws
Broker weight
Part of 5% of the national broker portion
Expected scored items
The current PSI outline assigns Land Use Controls about 5 of the 100 scored national broker items

This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, the Illinois Common Interest Community Association Act, Condominium Property Act, and Public Act 104-0377 checked through August 1, 2026. Public Act 104-0377 extends the Condominium and Common Interest Community Ombudsperson compliance provisions to January 1, 2029. HB 5449 was still awaiting gubernatorial action at the cutoff and is not treated as enacted law. Exact governance depends on whether the property is a condominium, covered common-interest community, exempt small association, master association, cooperative, voluntary association, or developer-controlled community, plus its recorded instruments.

What is on the official outline?

Topic
Bylaw purpose
What to know
Internal governance, association, board, director, manager, officer, member, election, meeting, notice, quorum, vote, records, budget, contract, procedure, and administration
Best exam move
Use bylaws to answer how association decisions are made, not whether the association owns a particular parcel.
Topic
Document hierarchy
What to know
Federal law, Illinois statute, public policy, declaration, CC&Rs, plat, bylaws, operating agreement, articles, rules, resolutions, guidelines, conflict, authority, and void provision
Best exam move
Trace every bylaw and board action upward to controlling statutes and the declaration.
Topic
Association type
What to know
Condominium, common interest community, homeowners association, master association, cooperative, voluntary association, not-for-profit corporation, LLC, unincorporated association, developer control, exemption, and election into statute
Best exam move
Classify the entity before choosing an Illinois statute or governance rule.
Topic
Board composition
What to know
Number of directors, managers, owner eligibility, primary-residence qualification, multiple owners, at-large election, staggered terms, developer appointee, officer, vacancy, resignation, removal, and term expiration
Best exam move
Separate who may serve from who may vote and from who holds an officer title.
Topic
Board powers
What to know
Manage common property, adopt budget, collect assessments, maintain insurance, contract, hire manager, enforce documents, adopt rules, levy fines, maintain records, litigate, borrow, repair, and delegate
Best exam move
A board power must come from statute or governing instruments and cannot contradict a superior rule.
Topic
Board duties
What to know
Good faith, fiduciary obligation, reasonable care, compliance, maintenance, finances, records, meetings, notice, conflict disclosure, owner communication, insurance, reserve planning, and document enforcement
Best exam move
A power authorizes action; a duty requires responsible performance. Keep the two concepts separate.
Topic
Officers
What to know
President, vice president, secretary, treasurer, appointment, election, term, removal, vacancy, signature, notice recipient, minutes, financial oversight, delegation, and board supervision
Best exam move
An officer performs assigned functions but does not automatically possess the whole board's authority.
Topic
Annual member meeting
What to know
Owner meeting, election, annual date, call, notice, purpose, agenda, candidate, quorum, ballot, proxy, percentage vote, minutes, adjournment, and inspector
Best exam move
Do not confuse a membership meeting to elect directors with a board meeting where directors conduct association business.
Topic
Special member meeting
What to know
President call, board call, owner petition, 20% condominium owners, stated purpose, notice, time, place, quorum, limited agenda, vote, removal, vacancy, and record
Best exam move
Follow the statute and bylaws for who can call the meeting and what business the notice permits.
Topic
Board meeting
What to know
Gathering of quorum, board business, open portion, closed discussion, technological participation, notice, posting, agenda, owner attendance, recording, deliberation, vote, minutes, and emergency
Best exam move
A quorum conducting board business can create a meeting even if participants call it an informal workshop.
Topic
Open and closed portions
What to know
Owner access, litigation, probable litigation, employment, contractor, interview, rule violation, unpaid assessments, legal counsel, privacy, deliberation, final action, open vote, minutes, and limited exception
Best exam move
Use a closed portion only for a statutory reason and take the required vote in the open meeting.
Topic
Meeting notice
What to know
Board notice, member notice, posted notice, electronic authorization, delivery, 48 hours, annual meeting, 10 to 30 days, purpose, place, time, longer document period, emergency, waiver, and proof
Best exam move
Match the notice period and method to the community type and meeting type.
Topic
Quorum
What to know
Board quorum, membership quorum, total seats, percentage interest, vacancy, presence, technological presence, proxy, ballot, adjournment, loss of quorum, and business validity
Best exam move
Calculate quorum before calculating the vote needed to approve a motion.
Topic
Voting
What to know
Percentage interest, one vote per unit, membership definition, board majority, owner majority, supermajority, ballot, proxy, electronic vote, cumulative voting, tie, abstention, candidate, amendment, and petition
Best exam move
Identify the voting body, denominator, allocation, quorum, and required threshold before counting yes votes.
Topic
Election procedure
What to know
Candidate notice, nomination, ballot distribution, proxy option, secret ballot, electronic means, election meeting, inspector, count, challenge, record retention, staggered term, at large, vacancy, and compelled election
Best exam move
Condominium and common-interest election rules differ, including how proxies and ballots may be used.
Topic
Budget procedure
What to know
Proposed budget, annual budget, common expenses, reserves, assessment allocation, notice, board adoption, owner petition, 115% comparison, 20% petition, 14-day period, meeting within 30 days, rejection vote, special assessment, and ratification
Best exam move
Do not assume every increase requires advance owner approval. Apply the statute and documents to the amount and petition process.
Topic
Contracts and conflicts
What to know
Board member, immediate family, 25% interest, association contract, notice, owner petition, vote, competitive bid, disclosure, recusal, manager, vendor, insurance, and records
Best exam move
A conflicted contract can trigger special statutory notice and owner-review rights beyond ordinary board approval.
Topic
Records and minutes
What to know
Declaration, bylaws, amendments, articles, rules, receipts, expenditures, contracts, leases, board minutes, owner minutes, ballots, proxies, tax returns, financial statements, request, proper purpose, redaction, retention, copy cost, response, and denial
Best exam move
Request the precise record under the correct statute and distinguish inspection from a demand that the association create a new report.
Topic
Amending bylaws
What to know
Statutory minimum, declaration provision, owner approval, board authority, percentage, notice, meeting, written consent, amendment text, officer execution, acknowledgment, recording, effective date, severability, and conflict
Best exam move
Verify both substantive authority and procedural compliance before treating an amendment as effective.
Topic
Transaction review
What to know
Current recorded bylaws, amendments, declaration, articles, rules, board roster, minutes, election dispute, budget, reserve, contracts, special assessment, manager, litigation, violation, resale certificate, owner plan, attorney review, and contingency
Best exam move
Governance problems can become ownership costs, delayed approvals, invalid actions, or litigation, so read more than the use restrictions.

Which distinctions produce the most mistakes?

Terms
Bylaws vs. declaration
Difference
Bylaws govern internal association procedure. The declaration creates core land burdens, ownership structure, assessment duties, and association authority.
Question cue
How the entity acts versus what attaches to the property.
Terms
Bylaws vs. rules
Difference
Bylaws establish governance machinery. Rules implement conduct and operational standards under authority granted by law and governing instruments.
Question cue
Decision process versus daily standard.
Terms
Board vs. association
Difference
The association is the collective membership entity. The board is the elected governing body that exercises delegated association authority.
Question cue
All members versus elected decision-makers.
Terms
Director vs. officer
Difference
A director or manager holds a board seat and votes on board action. An officer performs a designated role, sometimes while also serving as a director.
Question cue
Governing vote versus assigned office.
Terms
Member meeting vs. board meeting
Difference
Members elect directors and decide owner-reserved matters. Directors conduct board business and administer the association.
Question cue
Owner body versus governing body.
Terms
Quorum vs. majority vote
Difference
Quorum is the minimum presence needed to conduct business. Majority vote is an approval threshold measured against the denominator specified by law or documents.
Question cue
Can the body act versus did the motion pass.
Terms
Proxy vs. ballot
Difference
A proxy authorizes another person to exercise voting power. A ballot records the owner's own vote. Illinois election rules can permit, restrict, or replace proxy voting depending on the community and adopted procedure.
Question cue
Delegate voting authority versus cast a vote.
Terms
Open meeting vs. closed discussion
Difference
An open meeting permits owner attendance as required. A closed portion is limited to specified sensitive topics and does not create a general secrecy option.
Question cue
Default owner access versus narrow exception.
Terms
Board action vs. manager action
Difference
The board makes decisions within its authority. A manager carries out delegated administration and does not replace nondelegable board judgment.
Question cue
Authorize versus implement.
Terms
Rule adoption vs. bylaw amendment
Difference
Rule adoption uses existing authority for implementation. A bylaw amendment changes the governance instrument through its required approval and recording process.
Question cue
Use present power versus change governing text.
Terms
Owner petition vs. owner veto
Difference
A petition triggers a meeting or vote when the statute or documents say so. It does not by itself reverse board action unless the required rejection vote succeeds.
Question cue
Start review process versus defeat decision.
Terms
Private open-meeting rule vs. Illinois Open Meetings Act
Difference
Association statutes require access for owners in private communities. The Open Meetings Act applies to public bodies and is not the source of ordinary HOA meeting duties.
Question cue
Private owner right versus public-government transparency law.

The B-O-A-R-D-S governance audit

  1. Basis: classify the community and collect controlling statutes, declaration, recorded bylaws, operating agreement, articles, amendments, rules, and current board resolutions.
  2. Office and authority: identify members, directors, officers, managers, committees, developer rights, eligibility, terms, vacancies, signatures, delegation, and conflicts.
  3. Assembly: test meeting type, call, notice, agenda, quorum, open and closed portions, technological participation, owner recording, deliberation, vote, and minutes.
  4. Results: calculate vote allocation, denominator, threshold, proxies or ballots, abstentions, election outcome, budget petition, amendment approval, and effective date.
  5. Documents and dollars: review records, retention, contracts, budgets, reserves, assessments, audit or financial review, insurance, litigation, and disclosure duties.
  6. Solution: identify any procedural defect, cure, ratification route, new meeting, corrected notice, record request, election challenge, owner petition, Ombudsperson process, or legal review.
Actor
Members or unit owners
Typical role
Elect board and decide reserved matters
Core limit
Must use the vote and meeting process required by law and documents
Actor
Board
Typical role
Manage property and exercise association powers
Core limit
Cannot exceed statute or declaration authority
Actor
Officer
Typical role
Perform a defined leadership or administrative function
Core limit
Does not replace collective board action where required
Actor
Manager
Typical role
Carry out delegated day-to-day administration
Core limit
Cannot create powers the association does not have

How do the rules work in scenarios?

An informal board dinner becomes a meeting

Scenario: Four of seven directors meet for dinner and discuss which contractor the association will hire. Four directors constitute a quorum under the bylaws, and the purpose is board business.

  1. A board meeting is defined by a quorum gathering to conduct board business, not by the label social dinner.
  2. Meeting notice and owner-access requirements can apply.
  3. The directors should conduct deliberation and action through the lawful meeting process.

Answer: The gathering can be a board meeting despite its informal setting.

Quorum exists, but the amendment still fails

Scenario: A membership meeting has enough owners present for quorum. The declaration requires 67% of all votes to amend the bylaws, but only 55% of all votes approve.

  1. Quorum allows the meeting to conduct business.
  2. The amendment has a separate supermajority approval threshold.
  3. A simple majority of those present cannot replace the stated denominator.

Answer: The meeting was valid, but the amendment did not receive enough approval.

A manager cannot adopt a new rental ban

Scenario: The management company emails owners that all rentals are prohibited immediately. Neither the board nor owners voted, and the declaration permits leasing subject to registration.

  1. The manager implements delegated association business.
  2. A manager cannot contradict the declaration or unilaterally amend governing instruments.
  3. A lawful restriction would need substantive authority and the required adoption process.

Answer: The management email does not create a valid rental ban on these facts.

A closed discussion still needs an open vote

Scenario: A condominium board closes part of a noticed meeting to discuss a unit owner's alleged rule violation, then announces later that it imposed a fine without voting in the open portion.

  1. Rule-violation discussion can fit a statutory closed-session topic.
  2. The Act requires the vote on the matter to occur at an open meeting or open portion.
  3. The fine also requires the governing notice and hearing process.

Answer: Private discussion did not authorize a private final vote.

A budget petition triggers review, not automatic rejection

Scenario: A covered common-interest board adopts a budget above the statutory 115% comparison. Members holding 20% of the votes deliver a timely written petition within 14 days.

  1. The petition obligates the association to call the statutory member meeting within the prescribed period.
  2. The budget is not rejected merely because the petition was filed.
  3. A majority of the total member votes must be cast at the meeting to reject under the supplied statute.

Answer: The petition starts the rejection process but is not itself a veto.

A covered common-interest board meets only once

Scenario: A non-exempt association covered by 765 ILCS 160 holds one board meeting during the year because its old bylaws require only an annual meeting.

  1. Section 1-30(a) requires the covered board to meet at least four times annually.
  2. An inconsistent lower-level bylaw cannot reduce a statutory minimum.
  3. The association should update its calendar and governance practice.

Answer: One annual board meeting does not satisfy the current statutory minimum.

A recorded bylaw still loses to the Condominium Property Act

Scenario: A condominium bylaw says owners may never inspect any minutes or financial records. The association argues that recording makes the provision supreme.

  1. Recording does not validate a term contrary to controlling statute.
  2. Section 19 provides access rights and makes contrary condominium-instrument provisions ineffective as specified.
  3. The request must still follow the statute and any applicable category limits.

Answer: The bylaw cannot eliminate statutory record rights.

What are the common exam traps?

Trap
Calling bylaws CC&Rs
Correction
CC&Rs create core property burdens; bylaws primarily organize association governance.
Trap
Treating bylaws as the highest authority
Correction
Federal and Illinois law and the declaration can control over conflicting bylaws.
Trap
Assuming every association follows one Illinois Act
Correction
Classify condominium, common-interest, master, cooperative, voluntary, exempt, and developer-controlled structures.
Trap
Confusing the board with the association
Correction
The board is the governing body; the association is the collective membership entity.
Trap
Calling an officer the entire board
Correction
An officer cannot act alone where the law or documents require collective board approval.
Trap
Confusing quorum with the vote threshold
Correction
First decide whether the body can act, then calculate the approval vote using the correct denominator.
Trap
Calling a social gathering exempt by label
Correction
A quorum gathering to conduct board business can be a meeting despite its name or location.
Trap
Using the Open Meetings Act for a private HOA
Correction
Use the association's specific Illinois property statute and governing documents.
Trap
Taking final action in a closed portion
Correction
Closed discussion is limited, and covered votes must occur in the open meeting as the statute requires.
Trap
Assuming a petition is a veto
Correction
A petition triggers the defined meeting or election; the required vote decides the outcome.
Trap
Letting a manager amend bylaws
Correction
Management authority is delegated and cannot replace required owner or board approval and recording.
Trap
Changing bylaws with an informal email
Correction
Follow amendment authority, notice, vote, written instrument, execution, and recording requirements.
Trap
Ignoring record-category limits
Correction
Statutes differ on proper purpose, retention, exclusions, response periods, redaction, and copying costs.
Trap
Assuming old bylaws override a new statute
Correction
A lower-level provision cannot defeat a current mandatory statutory rule.
Trap
Treating a pending bill as law
Correction
HB 5449 had not become a public act by August 1, 2026 and is not used as current authority here.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. What is the main purpose of HOA bylaws?

  1. To govern association decision-making and administration
  2. To create municipal zoning districts
  3. To calculate mortgage interest
  4. To transfer title at closing
Show answer and explanation

Answer: To govern association decision-making and administration

Bylaws commonly address boards, officers, elections, meetings, voting, records, budgets, and procedure.

2. What is the usual difference between a declaration and bylaws?

  1. The declaration creates property burdens and authority; bylaws govern internal procedure
  2. Bylaws are zoning and the declaration is a mortgage
  3. They are always identical
  4. The declaration applies only to tenants
Show answer and explanation

Answer: The declaration creates property burdens and authority; bylaws govern internal procedure

The two documents work together but perform different primary jobs.

3. What is quorum?

  1. The minimum presence required for the body to conduct the relevant business
  2. Every vote cast for a motion
  3. The association's annual budget
  4. A deed restriction
Show answer and explanation

Answer: The minimum presence required for the body to conduct the relevant business

Quorum is measured before determining whether a motion received the required approval vote.

4. May a condominium board take its final vote on a rule violation only in closed discussion?

  1. No, the covered vote must occur in the open meeting or open portion
  2. Yes, every board vote is secret
  3. Yes, if the manager agrees
  4. No, because violations can never be discussed privately
Show answer and explanation

Answer: No, the covered vote must occur in the open meeting or open portion

The statute separates permitted closed discussion from final board action.

5. How often must a non-exempt board covered by the Common Interest Community Association Act meet?

  1. At least four times annually
  2. Once every ten years
  3. Only when a unit sells
  4. Every business day
Show answer and explanation

Answer: At least four times annually

That requirement appears in 765 ILCS 160/1-30(a).

6. Does filing a timely budget petition automatically reject the budget?

  1. No, it triggers the statutory meeting and the required rejection vote still must occur
  2. Yes, one signature is enough
  3. Yes, every petition is final
  4. No, because owners never have budget rights
Show answer and explanation

Answer: No, it triggers the statutory meeting and the required rejection vote still must occur

The petition starts a process rather than deciding the result by itself.

7. Can an association manager unilaterally amend recorded bylaws?

  1. No, the amendment must follow the authority and procedure in law and governing documents
  2. Yes, by sending an email
  3. Yes, if one director approves
  4. No, because bylaws can never be amended
Show answer and explanation

Answer: No, the amendment must follow the authority and procedure in law and governing documents

A manager implements delegated decisions and cannot replace required votes or recording.

8. Does the Illinois Open Meetings Act ordinarily govern a private HOA board?

  1. No, the applicable association statute and governing documents control
  2. Yes, every HOA is a public body
  3. Yes, if it collects assessments
  4. No, because HOA meetings are never open
Show answer and explanation

Answer: No, the applicable association statute and governing documents control

Private-association open-meeting duties come from property statutes, not the public-body Act.

9. A bylaw conflicts with a mandatory Illinois statute. Which controls?

  1. The statute
  2. The bylaw because it is older
  3. The manager's preference
  4. The listing agreement
Show answer and explanation

Answer: The statute

Private governing documents cannot override controlling law.

10. What should a buyer examine beyond use restrictions?

  1. Governance, elections, meetings, budgets, records, contracts, assessments, and disputes
  2. Only paint colors
  3. Only the president's name
  4. Only the pool hours
Show answer and explanation

Answer: Governance, elections, meetings, budgets, records, contracts, assessments, and disputes

Weak or contested governance can create financial, approval, and litigation risk for owners.

How should you study this area?

Session
Session 1
Focus
Build the authority ladder
Proof you are ready
Sort 30 provisions into statute, declaration, bylaws, operating agreement, articles, rules, resolutions, or management procedure and explain conflicts.
Session
Session 2
Focus
Map association roles
Proof you are ready
For 16 scenarios, identify member, director, officer, committee, manager, developer, candidate, proxy holder, and authorized signer.
Session
Session 3
Focus
Run lawful meetings
Proof you are ready
Build agendas for annual, special-member, regular-board, emergency-board, and closed-discussion situations with correct call, notice, quorum, vote, and minutes.
Session
Session 4
Focus
Calculate elections and votes
Proof you are ready
Solve 24 problems involving board seats, percentage votes, one-vote-per-unit provisions, quorum, proxies, ballots, supermajorities, petitions, vacancies, and removal.
Session
Session 5
Focus
Audit dollars and records
Proof you are ready
Review 12 associations for budget adoption, 115% petition rights, reserves, contracts, conflicts, financial records, minutes, retention, requests, and response periods.
Session
Session 6
Focus
Run the B-O-A-R-D-S audit
Proof you are ready
Score at least 90 percent and explain every miss through basis, office, assembly, results, documents and dollars, or solution.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about What Are HOA Bylaws? Illinois Real Estate Exam Guide

What are HOA bylaws?

HOA bylaws are governing provisions that organize how a homeowners association conducts its internal affairs. They commonly cover board size, eligibility, elections, officer roles, meetings, notice, quorum, voting, vacancies, committees, records, budgeting, contracts, and administration. They operate under controlling statutes and the recorded declaration rather than replacing either one.

Are HOA bylaws the same as CC&Rs?

No. CC&Rs, usually in the declaration, create core land burdens, assessment duties, easements, use restrictions, and association powers. Bylaws describe how the association and its board make decisions and carry out those powers. Rules give more detailed conduct standards under granted authority. Some documents combine provisions, so read the title, recording history, and substance.

Which controls if condominium bylaws conflict with the declaration?

Illinois Condominium Property Act section 4.1(b) generally provides that the declaration prevails over conflicting bylaws or other condominium instruments, except to the extent the declaration is inconsistent with the Act and subject to the section's qualification for certain instruments recorded before the relevant 1984 amendment. A bylaw cannot override controlling statute or silently amend the declaration.

Can an HOA board change the bylaws by itself?

Only if the statutes and governing instruments grant that authority for the proposed change. Many amendments require a specified owner vote, proper notice, execution, and recording. Under the Illinois Common Interest Community Association Act, no modification or amendment of the declaration, bylaws, or operating agreement is valid unless stated in an amendment and duly recorded. Never assume a board resolution equals a valid bylaw amendment.

Are Illinois HOA board meetings open to owners?

Covered Illinois condominium and common-interest statutes generally require board meetings to be open to owners or members, with defined reasons for closing a portion or meeting separately, such as certain litigation, personnel, contract, rule-violation, delinquency, or legal-counsel discussions. Final votes on covered matters must occur in the open portion as required by the applicable statute. Exact notice and exception language depends on community type.

Does the Illinois Open Meetings Act govern an HOA?

Ordinarily no. A private association is not a public body merely because its own governing statute requires open board meetings. Condominium and common-interest association meeting requirements come from their specific property statutes and documents. Do not import every Open Meetings Act rule into a private HOA.

How often must a covered Illinois common-interest board meet?

Section 1-30(a) of the Common Interest Community Association Act requires the board to meet at least four times annually. That rule applies to associations covered by the Act, subject to its applicability and exemption provisions. A condominium uses the Condominium Property Act and its bylaws rather than this non-condominium provision.

Can owners inspect association bylaws and records?

Illinois condominium and common-interest statutes provide inspection rights for specified association records, subject to written requests, proper-purpose rules for some categories, response periods, excluded records, copying costs, and other procedures. Bylaws, declarations, amendments, rules, meeting minutes, financial records, contracts, and election materials can have different treatment. Use the correct statute and request language.

What is quorum in an HOA meeting?

Quorum is the minimum voting presence required before a board or membership body can conduct the relevant business. Board quorum and owner-meeting quorum are different. The statute, declaration, and bylaws define the number or percentage, what counts as presence, and whether proxies, ballots, or technological participation apply. A majority vote is not the same thing as quorum.

Where are HOA bylaws tested on the Illinois broker exam?

The PSI Illinois Candidate Information Booklet effective June 24, 2026 places private land-use controls under National II.B. Questions commonly contrast bylaws with CC&Rs, declarations, association rules, deed restrictions, assessments, fines, zoning, and building codes.

Are these official PSI questions or HOA legal advice?

No. The practice questions are original, and the sources were checked through August 1, 2026. A real governance dispute requires the current statutes, declaration, recorded bylaws and amendments, articles, rules, meeting notices, minutes, vote records, association type, and advice from qualified Illinois community-association counsel.

Primary sources

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