We see this misunderstanding of condo versus townhome more than any other property types as a lot of listings will call the property a condo/townhome and there is no such thing. Understanding this difference between a condo and a townhouse is very important for buyers, sellers, and their agents!
- The owner owns only the interiors of the unit
- The other common areas and exterior of the units are owned as a whole by the condo association
- There are Condo Association Dues (COA dues) which usually include insurances, exterior maintenance, amenities
- The owner of the condo does not own the land individually under or around the condo unit
- Condos are governed by specific statutes in the US
- To obtain a mortgage on a condo, the condo association must be approved for the type of mortgage the buyer is obtaining such as FHA, VA, Fannie Mae, etc
- Click here to search for VA approved condos
- Click here to search for FHA approved condos
- The owner owns the land as well as the interiors plus any yard or deck
- Usually townhomes are attached to others but may be separate from each other
- A townhome may look like a condo and vice versa but you must check the other characteristics to determine the classification
- There are usually Homeowner’s Association Dues (HOA dues) to cover insurance (not always), common areas, amenities and are usually cheaper dues than a condo’s dues
- Townhomes are governed by the same laws that apply to single family homes
- The townhome maybe covered by a master insurance policy or it may have to be insured by owner individually. Check with the association
So make sure you review diligently which type of property you are considering buying or listing. It will save a lot of issues later and make it easier to sell. Contact Team Move today to finance your condo or townhome.