What Is the Difference Between a Townhouse and a Condo?

Navigating the housing market can be complex for prospective homeowners due to various residential property types, each with distinct ownership structures and responsibilities. This article clarifies two commonly confused classifications: condominiums and townhouses.

Understanding Condominiums

A condominium represents a specific form of property ownership rather than a particular architectural style. When you purchase a condo, you acquire ownership of the interior living space of a unit within a larger building or complex. This ownership typically extends to the walls, floors, and ceilings that define the unit’s boundaries, along with any fixtures and appliances inside.

Beyond the individual unit, all other elements of the property are jointly owned by all unit owners as tenants in common. These common elements include the building’s exterior walls, roof, land, hallways, lobbies, and shared amenities like pools, fitness centers, or parking areas. A Homeowners Association (HOA) manages these common elements, enforcing community rules and maintaining the shared spaces.

Condo owners pay regular HOA fees to cover the costs associated with these shared responsibilities. These fees fund the maintenance and repair of common areas, shared utilities, and the building’s master insurance policy. A portion of these fees is also typically allocated to a reserve fund for future large-scale repairs or replacements, ensuring the long-term financial health of the community.

Understanding Townhouses

A townhouse typically describes a multi-story home that shares one or more walls with an adjacent property, resembling a row of attached houses. Unlike condominiums, a townhouse usually has its own private entrance, providing a more individual home feel. These properties often include a small front or back yard, offering some private outdoor space.

A key distinction in townhouse ownership is that owners generally acquire both the structure of their unit and the land directly beneath it. This means the owner is responsible for the entire physical structure, including the roof and exterior walls. The ownership of the land grants a degree of autonomy over the property, similar to a single-family home.

While many townhouses are part of a community with an HOA, the scope of the HOA’s responsibilities differs significantly from a condo association. A townhouse HOA manages common areas such as shared roads, parks, or community facilities like clubhouses and pools. Consequently, HOA fees for townhouses tend to be lower than condo fees because individual owners are typically responsible for their own exterior maintenance, including roof repairs, exterior painting, and yard work.

Comparing Ownership and Responsibilities

The difference between condominiums and townhouses lies in the scope of ownership. A condo owner holds title only to the interior of their specific unit, essentially the airspace within its boundaries. In contrast, a townhouse owner typically possesses the entire structure of their home, including its exterior, and the parcel of land on which it sits. This distinction influences property tax assessments, as townhouse owners are generally taxed on both the structure and the land, whereas condo owners’ property taxes are calculated on their unit’s interior value and a shared portion of common elements.

Maintenance responsibilities also diverge between the two property types. For a condominium, the HOA assumes responsibility for the upkeep and repair of the building’s exterior, roof, and all common areas, including landscaping and shared amenities. This arrangement means condo owners generally face fewer direct maintenance tasks for the property’s exterior, contributing to a “lock-and-leave” lifestyle. Conversely, townhouse owners are typically accountable for the maintenance of their unit’s exterior, such as the roof, siding, and any private yard space.

The nature and cost of Homeowners Association fees reflect these differing responsibilities. Condo HOA fees are generally higher because they encompass a broader range of services, including building insurance, exterior maintenance, and utility costs for shared spaces. Townhouse HOA fees are often lower, focusing on the management of community-wide common areas like shared roads or parks, rather than the individual home’s exterior.

Privacy and autonomy also present differences. Townhouses often provide more privacy than condos due to their multi-level layout and typically sharing fewer walls—only side walls with neighbors, not units above or below. Townhouse owners often have greater control over their property’s exterior appearance and modifications, while condo owners are typically subject to stricter HOA rules regarding exterior alterations due to shared building structures and a higher volume of shared common spaces.