Difference between a Condo and a Townhome

People often think the difference between a condo and townhome has to do with the style of the structure and if there is a yard.  In reality, it has nothing to do with whether it looks like an apartment or has a yard. 

Condominium 

The legal arrangement under which a person owns one unit of a multiple development, such as an apartment building, plus an undivided interest in common areas used by all unit owners, such as hallways and grounds.

Townhouse 

A unit in a non-vertically attached, multi-unit complete where the owner of the unit owns in severalty both the unit and the land on which the unit rests.  The common areas are owned by the unit owners' association. 

To break down into simple terms the difference between in ownership:

Condominium

Condo owners only own the interior of their unit.  All other areas, including the building exterior, lawn, and communal areas, are property of the Homeowners Association. 

Townhouse 

In most townhouse communities, owners own the interior and exterior of their unit, including the roof, lawn, and driveway, but not the communal areas.

Your homeowner’s insurance would need this specified to determining your rate.  

Interested in learning more? Contact one of our qualified Real Estate advisors today.