The Differences Between Condos and Townhomes
When searching for your next home, there are many decisions to make. From location, size, and price to type of home. For many, a condominium or townhouse is a great fit. But did you know that a condo and townhouse are considered different home types? From the amenities and the structure to the way title companies view these two property types, there are some very distinct differences. In this blog we will look at the definitions of Condominium and Townhouse.
Condominium
Also called a condo for short, a condominium is typically a unit in a far longer complex, often multi-floored, with shared common areas. Common areas can include hallways, elevators, gym areas, and other places where all residents have access. When buying a condo you are effectively buying everything inside the walls of your condo, while everything outside is shared and managed by a group of owners. You do not actually own any land in a condo purchase.
Townhouse
A townhouse, also called a townhome, is an attached home, often in a community or complex of other townhouses, where there may be some shared common areas. When you buy a townhouse you are buying the land it sits on and also any garden or yard areas that are attached to your unit.
The definition of each has been challenged because Attorneys have muddied the waters by drawing up covenants, conditions, and restrictions that call a development a "condominium" subdivision, instead of townhouse, and vice versa. Nonetheless, if we go back to the very definition that sets a condominium apart from a townhouse, then one can assert that to be a townhouse, the unit must touch the ground and go from the ground to roof, with no other units on top. So then, to be a condominium, a unit would have another unit sitting on top of it, which would not allow that top unit to touch the ground, and leaving the bottom unit unable to touch the roof.
Homeowners Associations
A shared common aspect of both condos and townhomes is that they have Homeowners Associations (HOA for short). With an HOA, you are required to pay monthly fees into the HOA. These fees go towards maintenance and associated costs of taking care of common spaces and other services provided by the condo complex or townhouse subdivision. These can include things such as managing common spaces like lawns, pathways, roads, and gates, and in some cases, pools, gyms, snow removal, and exterior maintenance.The HOA also sets rules for the complex and owners/tenants. These can include rules around rentals, noise, changes to your unit, and more.
If you are looking to purchase a condo or townhouse, we strongly recommend that you read the entire HOA packet provided during your purchase process to make sure that the expectations and rules set by the HOA meet with your needs. It’s important to know what restrictions might be in place that could affect your enjoyment or your new condo or townhome. Also, understanding the ongoing fees and what they cover is critical to making sure the long-term costs fit within your budget.
