What is a common interest development (CID)?

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Prepare for the Texas Real Estate Principles 2 Exam. Hone your skills with comprehensive flashcards and multiple-choice questions, each with detailed hints and explanations. Get exam-ready today!

A common interest development (CID) is characterized by the combination of private dwelling ownership with shared facilities among its residents. This structure typically involves individually owned units—such as condominiums or townhouses—while also featuring communal areas and amenities like parks, swimming pools, and clubhouses that all residents can use and enjoy.

Residents in a CID usually pay homeowners' association (HOA) fees that contribute to the maintenance and management of these shared spaces. This model fosters a sense of community as owners not only hold their private property interests but also share responsibility for the upkeep of shared areas, creating a collaborative living environment.

The other options do not capture the essence of a CID. For instance, ownership of land with no common facilities does not provide the shared living experience that defines a CID. A subdivision governed by federal law mischaracterizes the nature of CIDs, as they are typically governed by state and local laws, along with their own governing documents. A variance in zoning refers to exceptions granted to existing zoning laws rather than any form of real property ownership structure. Thus, the unique blend of private ownership and shared responsibilities makes the selected answer comprehensive and accurate for describing a common interest development.

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