Unit 2: Property Ownership (Common Interest) Flashcards
What are common interest communities?
Any entity with the right to charge mandatory assessments for common elements.
These properties combine sole ownership with co-ownership.
What are the 4 types of common interest communities?
- Condos & Townhomes
- Planned Communities
- Cooperatives
- Timeshares
In Minnesota, who regulates these communities?
Minnesota Common Interest Ownership Act
T/F The Act gives common interest communities statutory lien power for unpaid assessments.
True
What 2 kinds of properties are not covered under the Act?
- Multi-tenant rental properties (apartments or 4-plexes)
2. Single-family homes unless part of a CIC
What kind of ownership exists in condominiums?
Fee simple ownership of the unit plus tenants in common for common elements.
How are condominiums created?
- New construction
2. Converting an existing structure
If an existing structure is being converted into a condo, how much advance notice needs to be given?
120 days
4 months
1/3 of year
If an existing structure is being converted into a condo, how many days do the current tenants have to purchase their unit?
60 days from the notice
What conditions allow for a tenant be given 60 additional more days to vacate the converted structure?
If they are 62 years or older, disabled, or have minor children.
What needs to be recorded in order to establish a condominium or other common interest communities?
Condominium declaration
What must be included in the condo declaration?
- Specification of common and limited common elements
- Restrictions on use and sale of units
- If timeshares are allowed
What needs to be added to a condo declaration if major changes are to take place in the condo?
An amendment
T/F An approval by 3/4s of the association members must be needed to approve any major changes to a condo.
False. Condos need an approval of 2/3.
T/F While every unit owner becomes a member of their homeowner’s association upon receiving the deed, they are not required to attend the annual meetings.
True
Upon signing the purchase agreement, Jim and Sue receive the declaration, budget, and association rules for their new condo. How many days do they have now to rescind their offer?
10 days
If a unit owner does not pay their association expenses, what can the condo association do?
They can file a lien and foreclose by advertisement.
What are the 2 kinds of insurances that condo associations have?
- Liability
2. Property
T/F Common Interest Communities may charge special assessments to unit owners and these charges are not taxed.
True
