Due to increased prices of single family homes and changes in lifestyle, many people are choosing to buy condos and townhomes. Prices are generally lower, upkeep, maintenance and yard work are kept to a minimum and the cost-of-ownership is often much less than a traditional, single-family home. Although condos & townhomes often get lumped together in discussions of multifamily, low-maintenance communities, there are a few main differences between condos and townhomes:

"What's the difference between a condo and a townhome?" A general answer to the question would be that condo unit owners own the inside of their units and townhomes owners own the complete unit, including exterior surfaces and the land on which the unit is built. There is the short answer…the long answer is often very complex and can vary from community to community. Make sure you make sure you have all the details on ownership, insurance requirements and home owner's dues before making a final decision on your home purchase.

Here are some other, more detailed, distinctions:

Architecture - Townhomes are typically homes that are side by side and share side walls. Condos can be any type of building from a one story to a high rise. With condos, there are usually other units above or below you.

Legal Ownership - The real distinction between condos and townhomes is legal distinction regarding how the property is deeded and who owns what. In a townhome, the house, the roof, the land under and surrounding the house are owned by the home owner. The common areas and parking lots are owned by the home owners association. In condos, the home owner only owns the area between the walls including the carpet, fixtures, cabinets, etc. The walls, roof, foundation, stairwells, elevators, common areas and parking lots are all owned by the home owners association. These distinctions and a specific assignment of ownership are important in determining who pay taxes and insurance on these items.

Home Owners Associations - In all condo or townhome projects, the common areas (recreation areas, swimming pools, parking, open spaces, etc.) must be maintained and managed for the benefit of unit owners. To accomplish this, a homeowners' association is formed and dues are collected. Associations will have an elected board, but in new communities, the developer often has control of the association for a predetermined time.

Dues, Assessments and Restrictive Covenants - All homeowners must pay dues and assessments and abide by the restrictive covenants. Understand that dues increases and assessments can, and will, occur when the expense to maintain, repair or replace items that are "common" property. The rules, or covenants, that are adopted by the association can restrict how you use your property. For example, the covenants of a community may not allow you to rent your property to others or landscape your yard as you would like. Carefully read the rules governing the community and make sure you consult your Realtor before making any final decisions.

We have a booklet that we would be happy to mail you that further answers condos and townhomes. Contact Us to receive your FREE booklet.

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