Trying to choose between a condo and a townhome in Minnetonka? The terms sound similar, but the differences affect how you own the property, what you maintain, how you insure it, and which rules apply. You want a home that fits your lifestyle and budget without surprises. In this guide, you will learn how Minnesota law defines each option, what to expect from HOAs, and the key questions to ask before you write an offer in Hennepin County. Let’s dive in.
Quick definitions that matter in Minnesota
What a condo means in Minnesota
A condominium is a legal form of ownership defined by the Minnesota Common Interest Ownership Act. You own your individual unit and a percentage share of the common elements. The association holds and manages those common elements on behalf of all unit owners. The unit boundaries and any limited common elements, like a balcony or assigned parking, are defined in the declaration and plat.
If you want to explore the statute, review the Minnesota Common Interest Ownership Act on the Minnesota Revisor of Statutes.
What a townhome can mean here
In Minnesota, “townhome” can refer to two different structures:
- Fee-simple townhome. You own the home and the land under it as a separate parcel. A homeowners association may manage shared amenities or some exterior items, but you typically have more control over your lot and structure.
- Townhome-style condominium. It looks like a rowhome, but it is legally a condo under the same framework as other condominiums, with shared ownership of common elements.
Always verify which model you are buying by reviewing the recorded declaration, CC&Rs, and plat. The legal structure drives maintenance, insurance, dues, and financing.
Who maintains what
Condos: association typically covers the exterior
In most Minnesota condos, the association handles the building exterior, roof, envelope, landscaping, snow removal, and common systems that serve more than one unit. Owners are usually responsible for interior maintenance and any limited common elements assigned to their unit. The declaration will specify exactly where the unit ends and common or limited common elements begin.
Fee-simple townhomes: responsibilities vary
In fee-simple townhome communities, responsibilities depend on the recorded covenants. Some HOAs handle roofs, siding, and grounds to keep a consistent look. Others leave exterior and yard care to owners. Read the CC&Rs to confirm who pays for what and how large projects are planned and funded.
Winter in Minnetonka: confirm snow and ice plans
Our West Metro winters demand reliable snow and ice management. Before you buy, ask who clears sidewalks, driveways, and guest parking areas, how de-icing is handled, and how winter services are budgeted within monthly dues. Seasonal costs can be a meaningful portion of a condo or townhome budget in Hennepin County.
Insurance basics for condos and townhomes
Condo owners typically carry an HO-6 policy for interior finishes, improvements, personal property, and liability. The condo association maintains a master policy for the building and common elements. Townhome owners who hold fee-simple title commonly carry an HO-3 policy that insures the structure, outbuildings, personal property, and liability. For a plain-English overview of how condo coverage works, see the Insurance Information Institute.
Important master policy details to confirm with the association:
- All-in vs walls-in. An all-in master policy insures more of the physical unit, while walls-in or bare-walls policies leave more interior coverage to owners.
- Deductible amount. Some Minnesota associations choose higher deductibles to lower premiums. A high deductible can be passed to owners after a claim, sometimes as a special assessment.
If you want more background or consumer guidance on insurance, the Minnesota Department of Commerce provides useful resources.
Financing and taxes
Mortgages and project approval
Lenders underwrite condos and townhomes differently. Many loan programs require additional review for condo projects. Some condominiums are approved for FHA or VA financing, and others are not. You can check a community’s status using HUD’s FHA condominium approval list. Fee-simple townhomes are often underwritten like single-family homes, though lenders may still review HOA financial health.
Associations with very low reserves, high rental percentages, or pending litigation can affect mortgage options and pricing. Ask your lender early about documentation needs.
Property taxes and homestead
Condo units and townhome parcels are assessed and taxed individually in Hennepin County. If the property will be your primary residence, you may apply for homestead classification. You can find county resources through Hennepin County. Assessed values can vary by land allocation, building age, and features, so compare total monthly costs, including dues.
Special assessments and taxes
Association dues are generally not tax deductible for a primary residence. Special assessments are not property taxes, but in some cases portions tied to capital improvements may have tax implications. Discuss your situation with a qualified tax advisor.
HOA governance, dues, and reserves
How associations are governed
Expect a set of governing documents: the declaration or CC&Rs, bylaws, articles of incorporation, rules, and a plat. These define use restrictions, maintenance duties, and how the board operates. Associations may be self-managed or run by a professional management company. Minnesota law also outlines disclosure and record-keeping standards, especially for condos under MCIOA.
Dues, assessments, and red flags
Regular dues fund operations and reserves for future repairs. In condos, dues are often allocated by percentage interest. In fee-simple townhome HOAs, dues can be equal per unit or based on lot factors. Watch for frequent or large special assessments, repeated deferrals of roof or siding projects, or a lack of a recent reserve study. Healthy reserves reduce the risk of surprise costs.
Reserve studies and financial health
A professional reserve study inventories major components, estimates remaining life, and recommends annual funding. Ask for the latest reserve study, the current reserve balance, the annual budget, and recent financial statements. In older Minnetonka buildings, such as 1980s and 1990s garden condos or shoreline associations, roofs, siding, and paving often approach replacement windows. Review meeting minutes to see how the board plans for capital projects.
Minnetonka-specific tips
Minnetonka offers a wide mix of attached housing. You will find garden-style condos and mid-rise buildings near retail hubs such as Ridgedale, along with fee-simple townhome neighborhoods near lakes and transit corridors. Outdoor access, trail systems, and commute routes to Minneapolis are key draws.
Local conditions that matter:
- Winter services. Confirm scope and cost of snow removal and de-icing for all travel surfaces.
- Water and drainage. Many properties are near lakes and creeks. Ask about stormwater management, shoreline responsibilities, and any city permits that affect exterior work.
- Short-term rentals and city rules. Some associations limit rentals, and cities may add their own regulations. Review the City of Minnetonka for local planning, zoning, and licensing information.
- Property records. Verify the parcel classification, assessed value, and homestead eligibility with Hennepin County.
What to review before you write an offer
Use this checklist as you tour and during your contingency period:
Ownership and title
- Confirm whether the home is a condominium under a declaration or a fee-simple townhome parcel.
- Review the recorded declaration, CC&Rs, and plat for unit boundaries, common elements, and limited common elements.
Association financial health
- Request the current budget, the most recent reserve study, reserve account balance, and the last 2 to 3 years of financial statements.
- Ask about special assessments in the past 5 years and whether any are planned.
Insurance
- Get the association’s master policy declarations, including coverage type and deductible.
- Confirm whether fidelity bond and adequate liability coverage are in place.
Governance and rules
- Read bylaws, articles, house rules, pet and rental policies, and meeting minutes for the last 12 to 36 months.
- Ask about pending litigation or major disputes.
Maintenance and capital projects
- Verify dates for roof, siding, paving, and major system replacements or repairs.
- Confirm who handles exterior repair, landscaping, and snow removal, and whether they are included in dues.
Amenities, parking, and utilities
- Confirm assigned parking, guest parking rules, storage spaces, and whether utilities are individually metered or included in dues.
Financing and resale
- Check FHA or VA approval if those programs matter for your loan.
- Request current owner-occupancy and rental ratios, which can affect financing options.
Local specifics
- Confirm any City of Minnetonka requirements that affect property use or permits.
- Verify Hennepin County property tax records and homestead status.
Which is right for you?
Choose a condo if you want a lower-maintenance lifestyle and are comfortable with association control over the exterior and shared areas. You will likely carry an HO-6 policy and rely on the master policy and reserves for big-ticket items like roofs and exterior finishes. Review the declaration to see what interior items you insure and maintain.
Choose a fee-simple townhome if you prefer more control over your structure and parcel. You may take on more exterior maintenance and carry an HO-3 policy. Dues might be lower if fewer services are included, but verify responsibilities and reserve funding for any shared components like roofing or private roads.
Most importantly, compare total monthly carrying costs, association financial health, and the rules that affect your day-to-day life. A clear understanding of the legal structure and the governing documents will help you avoid surprises and find the right fit in Minnetonka.
Ready to talk through options, review documents, or plan a smart offer strategy around Lake Minnetonka and the West Metro? Reach out to the Avenues & Acres Home Team for a friendly, no-pressure consultation.
FAQs
What is the key legal difference between a condo and a townhome in Minnesota?
- Condos are governed by a condominium declaration under MCIOA with shared ownership of common elements, while fee-simple townhomes are separate parcels with shared obligations defined by CC&Rs.
How do HOA dues compare between condos and townhomes in Minnetonka?
- Dues vary by development and services; condos often include exterior maintenance and snow removal, while fee-simple townhome dues depend on how much exterior care the HOA provides.
What insurance do I need for a Minnetonka condo or townhome?
- Condo owners typically need an HO-6 policy for interiors and personal property, while fee-simple townhome owners usually carry an HO-3 policy that covers the structure and lot.
How do West Metro winters affect maintenance responsibilities?
- Snow and ice removal are major line items; confirm who clears sidewalks, driveways, and parking areas and how winter services are funded in the dues.
Can I use FHA or VA financing on a Minnetonka condo?
- Some condo projects are approved and others are not; check a building’s status on HUD’s FHA condominium approval list or ask your lender.
What documents should I request before buying into an association?
- Ask for the declaration or CC&Rs, bylaws, rules, recent meeting minutes, budget and financials, reserve study and balance, insurance certificates, and any notices or litigation disclosures.
