Differences in certain real estate defined
by Jim Coleman, REALTOR®
CONDOMINIUM AND TOWNHOME DIFFERENCES ARE CONFUSING TO SOME
While conducting an inspection of a townhome in preparation for listing it for sale, the question was asked: "What is the difference between a Condominium and a Townhome?"
This question is subject of great confusion among many property owners, consumers and various parties associated with the real estate business.
The primary difference has to do with the legal definition and use. Absent other delineation and specification, in the case of the Condominium, one owns the "air space" of the unit: that area from wall surface to wall surface and floor to ceiling. The physical structure of the facility, together with the outside yards, drives, amenities and common areas, are all owned proportionately by the members of the Association. The Association is made up of each unit owner as a member. Condominiums may be residential, commercial or industrial.
As for the Townhome, the term may have various meanings throughout the country as to architectural style and use. But generally, as to comparison with the Condominium, in the case of the Townhome, one owns the physical structure (and obviously the air space as well), the land on which the structure is situated, and often the patio or yards associated with the specific unit, with the balance of the property including the common areas and amenities being owned by the members of the Association in relation to their ownership membership.
Condominiums and Townhomes are governed by Articles and Bylaws recorded at the Office of the County Recorder and are administered by the Association. This administration may actually be carried out by the member-owners, or hired out to some management agency. The Covenants, Conditions and Restrictions, commonly known as C.C. & R.s, give guidance for use upon the premises. It is typical that the valuation of a Condominium unit is comparable to a Townhome unit of comparable size, age, design, etc. They are also generally taxed about the same, as the tax is determined and assessed by the County according to valuation of the property.
The net effect of the differences between the two types of properties and ownership is often more psychological to the mind of the owner than anything else. Liability exposure and risk may vary depending upon the provisions of the recorded documents and the coverage within insurance or protection plans.
The great benefits generally enjoyed by owners of both types of properties usually include common yard care, service and maintenance, and in certain instances, a sharing of other use services, with each member being assessed a monthly proportionate fee for the services and care for the property.
You can follow any responses to this entry through the RSS 2.0 feed.
You must be logged in to post a comment.