What is the difference between a condo and a townhome?
There is a lot of confusion out there regarding these two types of property. People tend to assume that multiple units stacked on top of each other are classified as condos, and this is generally true.
Similarly, most think of townhomes as being two-story homes with rentable upstairs and downstairs units. This is not necessarily the case.
And it isn’t just prospective buyers who are confused about the how properties are classified. I recently spoke with a woman who owned a property she believed to be a townhome for years, only to eventually discover that her home is technically classified as a condo.
There is such a thing as townhome-style condos, so it is important not to make uninformed assumptions about the classification of properties you encounter. I recommend double checking with your Realtor as to whether a property is a townhome or condo.
At this point you may be wondering, “Why does the classification of a property matter in the first place?”
Actually, it comes down to financing terms and regulations, as these can vary between property types. Whether you’re marketing a property as a seller or are looking to purchase a property as a buyer, being aware of how it’s classified will matter.
When it comes to condos, you will generally own the airspace between walls. But with townhomes, you will also often have ownership over the land the property sits on.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.