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Understanding Common Interest Community: A Legal Perspective
Definition & Meaning
A common interest community is a type of real estate development where individuals own specific units and share ownership of common areas. Residents are required to pay for expenses related to the property, such as real estate taxes, insurance, maintenance, and improvements, based on their ownership. It's important to note that ownership does not include leasehold interests of less than twenty years, including any renewal options.
Table of content
Legal Use & context
This term is commonly used in real estate law and property management. Common interest communities often include condominiums, cooperatives, and planned unit developments. Legal issues may arise concerning the rights and responsibilities of unit owners, governance of the community, and enforcement of community rules. Users can manage some aspects of these communities through legal templates and forms available on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A homeowner in a condominium association pays monthly dues that cover maintenance of the building and landscaping, as well as insurance for common areas.
Example 2: In a planned unit development, residents share the cost of a community pool and park, which is managed by a homeowners' association. (hypothetical example)
Relevant laws & statutes
Pursuant to the Uniform Common Interest Ownership Act, specific regulations govern the formation and management of common interest communities. This act provides a legal framework for the rights and duties of unit owners and associations.
State-by-state differences
State
Key Differences
California
Has specific laws governing the disclosure of financial information to homeowners.
Florida
Requires homeowners' associations to register with the state and adhere to additional regulations.
New York
Imposes stricter rules on the formation and operation of cooperative housing.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Condominium
A type of common interest community where individuals own units.
Focuses on individual unit ownership rather than shared ownership of common areas.
Cooperative
A housing arrangement where residents own shares in a corporation that owns the property.
Ownership is through shares rather than direct ownership of a unit.
Common misunderstandings
What to do if this term applies to you
If you are considering purchasing a unit in a common interest community, review the community's governing documents and financial statements. Understanding your rights and obligations is crucial. You can also explore US Legal Forms for templates related to property agreements and community governance. If you have specific concerns or complex issues, consulting a legal professional is advisable.
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