Condos and Townhouses – What’s the difference?
Website design By BotEap.comThere is a lot of confusion about the differences between condominiums and townhomes. They share many similarities, and this seems to be the source of this confusion. Even among real estate professionals, we often hear more opinions than facts.
Website design By BotEap.comSo let’s start by clarifying, condominiums or condominiums are a type of real estate property. A townhouse is a royal style of construction.
Website design By BotEap.comA condominium is best described as “the concept of ownership of a single unit of airspace within a multi-unit dwelling, along with co-ownership of any common amenities (recreation centers, pools, etc.) and common areas of the structures and land between all unit owners.
Website design By BotEap.comTownhouses are generally 2-story or more attached structures with common walls. These are a version of the old “Brownstones” or “Row Houses” that became popular on the East Coast.
Website design By BotEap.comsimilarities:
Townhome ownership means you own the structure along with any associated land. So the owner of a townhouse can have freehold, just like a single-family home. Website design By BotEap.comThis is where things get a bit confusing. It is not unusual to have “condominium ownership” of a townhome. In other words, the structure is a “townhouse” while the property is a “condo.” Website design By BotEap.comDifferences:
Property and common areas are the main differences between condos and townhomes. You can actually have freehold on a townhome as well as the land (yard) associated with it. In a condo, you only own the “airspace” within your particular unit. Website design By BotEap.comOwners of a condominium development each own an equal share of the “General Common Elements.” This includes the structural elements of the building’s roof, walls, walkways, clubhouse, pool, etc… Website design By BotEap.comIn a townhome community, all common elements are deeded to the Home Owners Association (HOA). Townhome owners are part of the HOA but have no interest in these items. Website design By BotEap.com“Limited Common Features” is where we see a difference between townhomes and condos. Limited common items only seen on condo property. These are things that are intended for the use of individual unit owners. Parking lots, garages, balconies, and patios are examples of Limited Common Features. Although these are owned by all unit owners, they are limited to the use of specific owners. Website design By BotEap.comIn a townhome, the balcony and garage are owned by the townhome owner. The exception to this would be if a “townhouse” style home is owned by a “condo.” Website design By BotEap.comSummary:
Both condos and townhomes are known as “Common Interest Communities.” A “Common Interest Community” is one in which common real estate is held through appraisals and expirations. Website design By BotEap.comDue to the Community of Common Interest designation, we see a lot of confusion. The easiest way to remember the differences is this: a condominium is a form of real estate, and a townhouse is an architectural style.
Townhome ownership means you own the structure along with any associated land. So the owner of a townhouse can have freehold, just like a single-family home. Website design By BotEap.comThis is where things get a bit confusing. It is not unusual to have “condominium ownership” of a townhome. In other words, the structure is a “townhouse” while the property is a “condo.” Website design By BotEap.comDifferences:
Property and common areas are the main differences between condos and townhomes. You can actually have freehold on a townhome as well as the land (yard) associated with it. In a condo, you only own the “airspace” within your particular unit. Website design By BotEap.comOwners of a condominium development each own an equal share of the “General Common Elements.” This includes the structural elements of the building’s roof, walls, walkways, clubhouse, pool, etc… Website design By BotEap.comIn a townhome community, all common elements are deeded to the Home Owners Association (HOA). Townhome owners are part of the HOA but have no interest in these items. Website design By BotEap.com“Limited Common Features” is where we see a difference between townhomes and condos. Limited common items only seen on condo property. These are things that are intended for the use of individual unit owners. Parking lots, garages, balconies, and patios are examples of Limited Common Features. Although these are owned by all unit owners, they are limited to the use of specific owners. Website design By BotEap.comIn a townhome, the balcony and garage are owned by the townhome owner. The exception to this would be if a “townhouse” style home is owned by a “condo.” Website design By BotEap.comSummary:
Both condos and townhomes are known as “Common Interest Communities.” A “Common Interest Community” is one in which common real estate is held through appraisals and expirations. Website design By BotEap.comDue to the Community of Common Interest designation, we see a lot of confusion. The easiest way to remember the differences is this: a condominium is a form of real estate, and a townhouse is an architectural style.