David owns a lakefront cabin in Crow Wing County, Minnesota that he visits on weekends and during summer vacations. His primary residence is a home in Minneapolis where he lives full-time. David asks his real estate agent whether the cabin qualifies for homestead classification. What is the correct response?
Correct Answer
D) No, the cabin does not qualify because homestead requires owner-occupancy as the primary residence
Under Minn. Stat. § 273.124, homestead classification requires that the owner occupy the property as their primary residence. Since David's primary residence is his Minneapolis home, the Crow Wing County cabin — used only seasonally — does not qualify for homestead classification, regardless of how frequently he visits.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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