March 9, 2026

Now that we know that a condominium is a great development in Nebraska, how do you create it?

I’ve previously talked about recent changes to Nebraska condominium law that are very beneficial to real estate developers (click here to review that article), and how that might ultimately lead to new condominium development here. Maybe I should talk about the basics of creating a condominium.

For real estate developers seeking to create multiple ownership interests on a single parcel in Nebraska, the condominium form of ownership provides an efficient legal structure. Think of it as a subdivision process where subdivision isn’t otherwise allowed. While zoning, permitting and construction issues are critical to your success, the creation of a condominium ultimately depends on the proper preparation and recording of the required documents.

A condominium is created when the required documents are executed and recorded with the county Register of Deeds. The principal documents include the condominium Declaration (the “Declaration”); the Plats and Plans (which are usually part of the Declaration); the Public Offering Statement (only in cases where more than 25 condominium units are created); and the condominium association organizational documents (listed below).

The Declaration is the basic governing document of a condominium. I always tell people to think of the Declaration as the Constitution. Everything needs to flow from the Declaration. It establishes the legal structure of ownership of units and the rights and obligations of both the developer (usually called a Declarant) and the future condominium unit owners.

The basic clauses in a Declaration include:

1. Legal description of the property (the legal description that exists before the condominium is created).
2. Identification of the condominium units and the common elements.
3. Allocation of common expense liabilities.
4. Maintenance, repair and replacement responsibilities.
5. Use restrictions.
6. Easement and access rights.
7. Insurance requirements.
8. The condominium association’s assessment authority and lien rights.

Because the Declaration is recorded and runs with the land (forever), you have to get the Declaration right from the beginning. Mistakes/ambiguities will create long-term problems and disputes, as well as litigation exposure to the real estate developer.

If your condominium is going to have more than 25 residential units or is a strictly commercial development, the real estate developer needs to provide a Public Offering Statement (“POS”) before the execution of any purchase agreement for the sale of those units.

The POS is a consumer protection requirement and must have (among other things):

1. The name and address of the real estate developer.
2. A general description of the condominium, including amenities offered with the condominium (for instance, a pool).
3. The anticipated schedule for commencement and completion.
4. The number of condominium units.
5. The amount of monthly assessments and the current operating budget.
6. Any initial or special fee due from the purchaser at closing.
7. Any current fees or charges to be paid by the unit owners for use of the common elements or amenities.

A condominium requires the creation of a condominium association which is responsible for managing the common elements and enforcing the restrictive covenants. The condominium association is essentially the same thing as a homeowners’ association (HOA). The formation of that condominium association typically involves the creation of Articles of Incorporation to be filed with the Nebraska Secretary of State and Bylaws for the operation of the condominium association. Remember, the condominium association is a nonprofit corporation.

A condominium is created when the Declaration is recorded with the county Register of Deeds. When it’s recorded, the condominium units become separate real property interests with individual titles which can be conveyed and mortgaged. This is why the condominium form is much like a subdivision. This also allows the “subdivision” of a single building.

No municipal approval is required for the creation of a condominium. Don’t forget, the use of the units and construction of the building (assuming this isn’t a “conversion” of an existing building) still has to meet zoning requirements.