Hello again! It’s Reggie Moon, Qualifying Broker with Eclipse USA Realty. We get calls from buyers that think they are looking for a condo when really it’s a townhome, or vice versa. The biggest difference between them, is what do you actually own when you own EITHER.
Here are the basic differences. With a condominium you do not own the structure. You only own the air inside the four walls, the ceiling, and the floor. That’s what you own. You don’t own the building. You don’t own the grass outside, you don’t own the entrance, you don’t own anything to do with the exterior structure. Those things belong to the complex.
When you buy a townhome, it’s the same as buying a house except your neighbors are extremely close. Other differences involve financing. If you choose an FHA lender or loan program, know there is a rule that if the complex is more than 20% renters, you cannot buy in the complex. The complex management company has to fill out a form for the lender that confirms to the lender that at least 80% of the residences in the complex are owners.
So, that’s the difference between Condos and Townhomes. A Townhome may have a small yard in the front and back or maybe a courtyard. A Condo will share a common area with other condo owners. Keep in mind both usually have HOAs and both have limited parking. The newer models have a pool and are gated. Most of the older ones do not. Fore more information…….
CALL OR CLICK 404.ECLIPSE.com. Or you can reach me direct at