In this article, we are going to discuss the three types of common interest communities in Minnesota – and the unique purpose of each.
Minnesota Community Interest Communities
There are three types of common interest communities (CIC) in the state of Minnesota, each serving its own purpose:
- Planned Communities – these consist of a series of lots that have governing documents that control how they can and cannot be used, conveyed, and developed.
- Condominiums – these are small sections of a larger building that individual parties can purchase.
- Co-Operatives – these CICs are real estate developments that do not, in general, get sold as separate units.
What to Know About Condominiums
Condominiums are the most common type of community interest community in the commercial real estate realm. It’s important to note that according to Minnesota law, the final condominium cannot actually be created until the physical structure has been completed. This is to ensure that the boundary lines of the individual units are accurate.
Governing Documents & Owners Associations
When preparing a common interest community in Minnesota, the document that governs the community is known as a declaration. This declaration includes a CIC plat, which establishes a governing structure and creates rights and obligations between property owners. In general, that governing structure is built around an Owners Association, which can develop rules and regulations for how the property will operate.
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