A townhouse is a house consisting of 2 floors. The summit floor consists of 2 rooms and the base floor consists of a dining, kitchen and a living room. The name townhouse points to the architectural design of the house. Condos, on the other hand are flats within a complex consisting of multiple apartments and are individually owned. A townhouse may be owned or rented.
In this article, Zack Childress analyzes the differences between condos and townhouses.
- Liability issues
- Nature of association
Town houses are typically one-storied or multi-storied. Each story in a townhouse has a separate entrance whereas condos are popularly multi-storied and contain an entrance to each unit through a common hall.
The condo can be built in apartment style or townhouse style. But a townhouse is in a house style.
The ownership to a condo is a shared one. The owners share rights over common areas like back yards, front yards, lifts, parking, garden and so on. A townhouse is a house which is built on a land and the owners own the area of the land that the townhouse sits on and not the entire land.
For the condos, the insurance policy is warranted and is taken by the condo association. It covers damage due to fire, theft and liability. The common areas are insured and the owners also insure for their individual units. In case of a townhouse also there is guaranteed insurance and the owner of the townhouse takes the insurance. It covers the intramural unit and the outdoor areas. Emergencies like storm, fire, floods and earthquake damage are insured. The townhouse owners also have to insure the exterior of the home.
If a townhouse is on lease, then the property manager will maintain the interior and the exterior land. Else the owner has to manage the maintenance part. For a condo, the association formed for general maintenance matters will take care of them, whereas the owner is responsible for maintaining the interior. So, for first time home buyers, condos are a good choice since the HOA takes care of the housing maintenance and the repair works. Also condos are the best options for people who travel a lot.
The townhouse association covers the public buildings and the common areas with liability insurance. Common areas covered are garages, parking lots, walk paths and so on. For condos, the interior units are covered with liability insurance.
Nature of association
The condo association is very strict and it imposes many restrictions on the residents with respect to the exterior. They cannot decorate the exterior as they please and have to be very careful with handling. Whereas, townhouse associations give their inhabitants more freedom and allow them to decorate the exterior as they please.
These are some of the basic differences between condos and townhouses as analyzed by Zack Childress. Zack is a maestro real estate investor and mentor. He is a wizard in the areas of wholesaling, short sales and many other real estate topics. He imparts knowledge to many students.