This month we explore the differences between a condominium and a townhome as they are two distinct types of residential property with several key differences.
What is the difference between a condominium and a townhome?
The biggest difference between a residential townhome and a condominium is what a homeowner owns with respect to the property. Generally speaking, when someone owns a townhome they own the structure, the walls in the front and back of the unit, their side of the shared wall, the space in-between and the dirt or land underneath. With a condominium the owner owns the interior space of the unit, and the actual structure and land is owned by the condominium association.
Another difference can come up in looking at maintenance of the dwellings. While both may be handled by a homeowner’s association as to collecting monthly payments, typically a condominium owner is responsible for maintenance of the interior piece of the unit and the condominium association handles the common areas. With a townhome the owner is responsible for interior and exterior maintenance, including any private yards and outdoor spaces.
When it comes to legal governance, condominiums fall under specific laws and regulations such as the Uniform Condominium Act and townhomes are typically subject to the same rules and regulations that a single-family home falls under.
How can you tell the difference?
When a condominium is created there are documents called a condominium regime filed in the real property records. This document creates the name of the condominium project so when you are looking at the legal description of a property and see the word “condominium” you will know it’s a condominium. When in doubt, call me and we can always research it for you!
Which contract should you use?
For a condominium, the TREC Residential Condominium Contract should be used, and this contract provides paragraphs to cover the important documents needed from the homeowners association. For a townhome, the TREC One to Four Family Residential Contract should be used along with the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form.