Minnesota State Real Estate Practice Test

Can an apartment in a condominium be classified as a homestead?

1. Yes, as long as it is the owner's primary residence

2. No, condominiums are not eligible for homestead status

3. Yes, for tax purposes only

4. No, unless the apartment is rented

The correct answer is: Yes, as long as it is the owner's primary residence

An apartment in a condominium can indeed be classified as a homestead if it is the owner's primary residence. In Minnesota, the homestead classification applies to properties that are occupied by their owners as their principal dwelling. This classification allows for certain tax benefits, such as a reduction in property taxes. The term "primary residence" is crucial here, as it signifies that the owner lives in the condominium apartment and uses it as their main home. In the context of Minnesota real estate laws, as long as the requirements for a homestead are met—including residency and ownership—the apartment is eligible for this classification. This classification also means that the property may qualify for programs aimed at providing tax relief to homeowners, which is beneficial for residents living in condominiums. Therefore, the answer aligns with the understanding of both homestead laws and the criteria set forth for properties like condominiums in the state.