If you've been shopping for real estate you have probably run across listings for both condos and townhouses. At first glance the two might appear to be the same thing. However, although they are quite similar in many ways there are some key differences between owning a condo and owning a townhouse. Let's take a closer look and see exactly what each term means.

 

Condos

When you buy a condo, you get the title to your individual unit in the building, but not to the land that it sits on. Since the land is not sold with the condo it means that the units can be stacked one on top of the other so you can have upstairs or downstairs neighbors.

Any public spaces are jointly owned by all the condo owners in the complex. These common spaces include the land and grounds, hallways, roofs, etc. Essentially anything outside your specific unit is considered common space and is owned by all the condo owners.

When you own a condo you will pay property taxes directly on your unit.

There is usually an owner's association that collects fees from all of the people who own condos in the complex. The money that is collected is then used to maintain the common areas.

 

Townhouses

Much like condos, when you buy a townhouse you are buying a specific unit within a complex. However, there are some key differences. Probably the biggest difference is that with a townhouse not only do you own your unit, but you also own the land that it sits on. That means that townhouses can't be stacked one on top of the other. Instead, they are joined by the side walls of each building. So although you won't have upstairs or downstairs neighbors you can still have someone directly next door.

When you own a townhouse you will pay property taxes on both your house and the land it sits on.

Like condos, any public spaces are considered common areas. These areas are usually maintained for you by an owner's association that collects maintenance fees from each owner in the complex.

 

 

Condominium
Like townhouses, condominiums are attached to one another. If you own a condo, you do not own the land surrounding your living space. A condo owner owns only the unit itself, which is taxed as an individual entity, and sometimes a percentage of the common areas of the community. Condo communities may provide such shared facilities as a pool, gym, tennis courts and clubhouse, all maintained by the condo association, which takes care of all day-to-day management tasks. This is one of the key advantages of condo living -- all of the joy of using the amenities, none of the hassles of maintaining them. Condominium owners pay a monthly fee to the condo association, which also sets the rules for the community.

 

 

Townhouse

A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free-standing, so "the land on which it sits" is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall. They share many of the characteristics of condominiums