Condo Versus Townhouse

In this post, "Condo Versus Townhouse", we are going to discuss the difference between condo versus townhouse in terms of residential property types and explain how condos and townhomes fit into HOAs. We will start off by explaining that there is key difference between architectural style and legal structure that you must understand with regard to condos and townhomes. We will then define the property types and answer some important questions that help you understand the difference and how these property types fit into HOAs.

The Key Difference

When thinking about condos versus townhomes, the most important thing that you need to wrap your head around is the difference between architectural style and legal structure of the property. Most people believe that they can distinguish condos and townhomes architecturally based on property construction and appearance. While these property types can have distinguishable architectural features, you'll never be able to truly classify the properties without understanding the legal structure of the property. For example, a developer can design a property that architecturally is a townhome but is classified as a condo in terms of the properties legal structure. Therefore, it is critical to understand that sometimes condos and townhomes can be the same thing in terms of legal structure and yet have completely different architectural styles. At the same time, sometimes condos and townhomes have different architectural styles and legal structures. We'll attempt to define the two property types below.

Definitions

A condo is a type of residential dwelling that is part of a larger complex or building. Architecturally, most people can identify a condo as normally part of multi-unit buildings or complexes where individual units are stacked vertically. They can also be in the form of low-rise or high-rise buildings. You can view the image below this paragraph depicting the exterior architectural style of a condo. In terms of legal structure, individual units are privately owned by the occupants, while common areas such as hallways, elevators, and recreational facilities are jointly owned and maintained by all the unit owners in the complex through a HOA, condo association or both. Condos can offer amenities to owners such as swimming pools, fitness centers, and security services. Owners of condominium units pay monthly dues to cover maintenance costs and other shared expenses of the property.

A townhome is a type of residential dwelling that can be architecturally characterized by its vertical construction and shared walls with neighboring units. Townhomes are typically part of a row or a cluster of similar units, often arranged in a uniform architectural style. You can view the image below this paragraph depicting the architectural style of a townhome. In terms of legal structure, townhome owners can own both the interior and exterior of their unit, including the land it sits on. If the townhome is legally structured as a condo to be part of a condo association, you will most likely only own the interior of the unit. Townhomes can vary in size, layout, and amenities, and they are popular in urban and suburban settings for their combination of privacy, affordability, and shared maintenance benefits.

Important questions

1. Are condos and townhomes sometimes the same thing?

Yes, when it comes to the legal structure of the property. You can have a piece of property that architecturally is designed as a townhome, but is classified as a condo.

2. Are condos part of HOAs?

Not necessarily. While many condos are part of homeowners' associations (HOAs), it's not a universal requirement. Whether a condo is part of an HOA depends on various factors. These factors include the developer's decisions, local regulations, and the preferences of the homeowners. Instead, condos may be part of a condo association that functions similarly to an HOA, managing common areas, amenities, and enforcing rules and regulations. Other condo developments may operate without a formal association, relying on individual unit owners to coordinate maintenance and resolve disputes among themselves. Even within condo developments with an HOA or condo association, membership may not always be mandatory. However, membership and adherence to the association's rules and regulations are often required by the governing documents when purchasing a unit within the development.

3. Are townhomes part of HOAs?

Not necessarily. While many townhome communities are part of a HOAs, not all townhomes are. Whether or not a townhome is part of an HOA depends on the specific development and its governing documents. Some townhome communities have HOAs that manage common areas, amenities, and exterior maintenance, while others may operate without an HOA. It's essential for potential buyers or residents to review the HOA rules and fees before purchasing or renting a townhome to understand the responsibilities and restrictions associated with living in that community.

Summary

We discussed the key differences between condos and townhomes, focusing on both architectural style and legal structure. We explained that while condos and townhomes may have distinct architectural features, their legal classification is crucial for understanding their true nature. Condos are described as units within a larger complex, with common areas jointly owned and maintained by occupants through an HOA or condo association. Townhomes, on the other hand, are characterized by vertical construction and shared walls, with owners typically owning both the interior and exterior of their units. The post also addresses common questions about HOAs for both condo and townhome properties, emphasizing the importance of understanding governing documents, rules, fees, and responsibilities before purchasing.

In conclusion, it's essential for potential buyers to thoroughly review the governing documents and understand whether they are part of a condo association, HOA, or both. Depending on the outcome, there will be different rules, fees, and responsibilities that are critical to understand before purchasing a condominium unit.

HOA joke of the day: Why are condos and townhomes like rival mob families? Because condos are like the flashy bosses living the high-rise life, while townhomes are the gritty, street-smart enforcers with their own patch of turf. They're always eyeing each other across the neighborhood, sizing up their property values like it's a turf war. But hey, at least they both agree on one thing: nothing brings neighbors together like a good old-fashioned complaint about noisy upstairs neighbors or those pesky HOA rules!

Thank you for reading this post. We hope you found it informative and interesting.

You can read our next post on Neighborhoods without HOA

-HOA Chief 3/29/24