Expert: Jessica Bryan - 5/27/2005

Question
Hello:

What is the difference between a condominium and a townhouse?  I know that with a condominium, the owner does not own the exterior of the condominium, but the owner may own the exterior of a townhouse.

I thank you for your reply.

Answer
Hello;
To answer your question about condominium vs. townhouse differences:

You already had part of the answer correct.  The difference is in the ownership.  In a condo, you own the inside space of the dwelling (just the inside walls) and have an undivided interest and ownership as tenants in common with all other owners on all other areas--outside walls and land.  So, for example, if there were 10 condos in a building on 1 acre of land, you would own 1/10th of an acre of the land and 1/10th of the building plus you would own (in entirety) the space and inside walls (the enclosed space) of one of the units.

In a townhouse development, ownership goes from the land up in the designated unit.  So the ownership is of the unit, the exterior and interior (with the exception of common or joined walls) and the land it sits on.  The common areas are owned by the Homeowners Association to which you pay a fee for upkeep.  So, if there are ten units on an acre of land with the ten units equally occupying 1/2 acre and the remaining 1/2 acre being common area--parking, planted area, sidewalks, and walkways; you would own 1/10th of the 1/2 acre (or 1/20th of an acre of land upon which your townhouse was built.  You would own that land exclusively and in entirety without any other tenants having rights to that space.  You would also own the structure (except for common walls) from the outside in. When  one purchases a townhouse care should be taken to check to see who will be responsible for painting and upkeep of the exterior of the unit since it is owned by the individual.  Ordinarily, the Homeowners Association (HOA) dictates the colors and materials for the exteriors of the units and charges a set fee to do the work.  Sometimes, however, it is the owner's responsibility to provide upkeep, repair and painting of the unit.

So to recap--the common areas of a condo are owned by all the owners (equally) as tenants in common while in a townhouse the common areas are owned by the Homeowners Association. The personal enclosed space of the condo owner is owned separately while the entire vertical structure from the ground up in a townhouse in owned by the individual.

This is extremely confusing to people and in many cases--depending upon the design of the unit--not very clear.  When making a purchase of either a condo or a townhouse, I advise that the Buyer carefully examine the rules of ownership provided by the Association and what responsibilities the Owner has for maintenance and repair along with an explicit definition of ownership.  If there is a question of any sort, check with an attorney before closing on a unit to make sure that you are aware of your financial responsibilities and liabilities.

I hope that this fully answered your question.

Jessica Bryan
Managing Broker
House to Home Realty Services